A.P. Moller – Maersk (Maersk) and Chinese developer Goldwind have marked the first large scale green methanol offtake agreement for the global shipping industry.

The agreement reportedly reduces the risks associated with Maersk’s net-zero journey and supports aspirations for a competitive green methanol market by 2030.

The record-breaking quantities may propel more than half of Maersk’s methanol-enabled capacity that is presently on order.

Wu Gang, Chairman, Goldwind, said: “Goldwind respects Maersk as a pioneer in the field of maritime green fuel and we are excited to jointly promote the green transition with Maersk.

“With this project, Goldwind will continue to explore the innovative application of new technologies, pursue the organic combination of green electricity and green fuel production, and optimise the production process of green methanol.”

The amounts include a combination of green bio-methanol and e-methanol, all of which are generated using wind energy at a new production plant in Hinggan League, Northeast China, approximately 1,000 kilometres northeast of Beijing.

Production is set to start in 2026. Following the execution of this offtake agreement, Goldwind anticipates making a final investment decision for the plant before the end of the year.

Rabab Raafat Boulos, Chief Infrastructure Officer at Maersk, stated: “We are encouraged by the agreement because its scale and price confirm our view that green methanol currently is the most viable low-emission solution for ocean shipping that can make a significant impact in this decade.

“The deal is a testament to the momentum and vast efforts we see among ambitious developers driving projects forward across geographies, however, we still have a long way to go in ensuring a global green fuels market that can enable the decarbonisation of global shipping.”

Maersk is expected to take delivery of its first large ocean-going methanol-enabled vessel (16,000 TEU) in the first quarter of 2024.

In September, Maersk and Equinor inked an agreement to provide green methanol supply for Maersk’s new methanol-enabled feeder vessel during its initial months of operation.