Maersk, Proman announce agreement on green methanol supply

WOLLERAU, Switzerland and COPENHAGEN, Denmark, March 10, 2022 /PRNewswire/ -- Proman and A.P. Moller -Maersk (Maersk) have entered into a new cooperation agreement to identify and develop green methanol supply solutions for Maersk's new methanol-fuelled container vessels.

As part of today's agreement, Proman will aim to supply Maersk with 100,000 – 150,000 tonnes per year of green methanol from its new 200,000 tonnes per year methanol facility in development in North America. The project will be built by Proman with target start of operations in 2025, producing bio-methanol from non-recyclable forestry residues and municipal solid waste.  

Proman and Maersk will further collaborate on developing global projects with the aim of producing and delivering green methanol for Maersk's vessels. Proman will leverage its expertise across the methanol value chain to optimise global supply at Maersk's key bunkering ports, alongside wider collaboration and sharing of operational and technological best practices to drive forward shipping sustainability.

Proman is evaluating multiple bio-methanol and e-methanol projects in South America, Europe and the United Kingdom, which Maersk and Proman will explore as part of a longer-term green methanol supply strategy for Maersk and for the shipping industry.

Proman continues to develop worldwide investments in new ultra-low emission natural gas to methanol plants, in which plants are designed to maximise efficiency and minimise emissions, to help serve the broader marine fuel demand.

Proman Chief Executive, David Cassidy, said of the agreement: "Maersk's industry-leading commitment to green methanol is fully aligned with Proman's belief that methanol should be a key part of the energy transition. Methanol-powered vessels are already in use today, with a proven track record of reducing and even eliminating major emissions like particulate matter and sulphur oxides. We are excited to bring our deep industry experience to help deliver on Maersk's bold ambitions, working together to deliver green methanol and clean shipping at a global scale."

"To transition towards decarbonisation, we need a significant and timely acceleration in the production of green fuels. Green methanol is the only market-ready and scalable available solution today for shipping. Production must be increase through collaboration across the ecosystem and around the world. That is why these partnerships mark an important milestone to get the transition to green energy underway," says Henriette Hallberg Thygesen, CEO of Fleet & Strategic Brands, A.P. Moller – Maersk.

Key challenges remain in securing competitively priced green methanol globally. In order to help decarbonise the global shipping industry, further legislative action is required to help level the playing field and incentivise the adoption of lower-emission fuels. Consistent and transparent emissions calculation and accounting standards will be critical to allowing like-for-like comparisons between future fuels.

Proman and Maersk's agreement to produce green methanol emphasises the belief that methanol is one of the most viable fuels to meet the urgent challenge of maritime decarbonisation. With increasing investment in low-carbon methanol production and the potential net zero benefits of green methanol, today's announcement will enable the methanol industry as a whole to pave the way to a cleaner shipping future.

About Proman: 

Proman is an integrated energy company and the world's second largest methanol producer.

Headquartered in Switzerland, with assets in the United States, Trinidad and Oman, and ongoing expansion into Mexico and Canada, Proman is a global leader in methanol, fertilizer and other products such as melamine. It has extensive experience in petrochemical plant operations, petrochemical and power plant construction, marketing and logistics, and project management.

Proman is committed to developing sustainable methanol and ammonia as cleaner alternatives to fossil fuels, offering a pathway to drastically cutting emissions in power generation, overland transportation, shipping and industry.

Proman is also an investor in, and charterer of methanol-fuelled tankers, and is expanding its global supply of low carbon and green methanol for its own use.

Learn more about our work along the clean shipping supply chain here: https://www.proman.org/methanol-as-a-marine-fuel/

About A.P. Moller - Maersk.

A.P. Moller - Maersk is an integrated container logistics company working to connect and simplify its customers' supply chains. As the global leader in shipping services, the company operates in 130 countries and employs approximately 80,000 people.

SOURCE Proman AG; Maersk