Maersk Sources Methanol Supply for Sustainable Shipping

A.P. Moller - Maersk has taken a significant step towards reducing greenhouse gas (GHG) emissions in its logistics operations with a long-term bio-methanol sourcing agreement with LONGi Green Energy Technology Co.

The deal reinforces Maersk’s strategy to supply its fleet of dual-fuel methanol container vessels with low-emission fuels and reflects the shipping giant's commitment to its ambitious net-zero emissions target by 2040.

Maersk, known globally for its role in supply chain management and logistics, has been ramping up efforts to support green fuel options.

The company operates in more than 130 countries with approximately 100,000 employees and has put forth a strategy prioritising carbon reduction by focusing on advanced technologies, new ship designs and low-emission fuel sources.

Its new agreement with LONGi, a China-based leader in photovoltaic (PV) and solar power technology, bolsters this mission by securing bio-methanol sourced from renewable materials to fuel its eco-friendly fleet.

This move signals more than just an environmental gesture; it strengthens Maersk’s supply chain for alternative fuels to meet the increasing needs of its expanding methanol fleet. Seven of these dual-fuel ships are already in operation, with more expected in the coming years.

Maersk has now covered over half of its projected methanol fuel demand for 2027 through similar long-term supply agreements, a notable achievement in an industry where sustainable fuel options are still limited.

With LONGi’s bio-methanol production set to start in 2026, Maersk is preparing to integrate this greener fuel source into its fleet operations within just two years. LONGi’s facility in Xu Chang, Henan province in Central China, will produce the methanol from straw and fruit tree cuttings and it is expected to yield a 65% reduction in lifecycle GHG emissions compared to conventional fossil fuels.

This bio-methanol will meet Maersk’s sustainability criteria, furthering the company’s goals for cleaner logistics while exemplifying responsible sourcing.

Bio-methanol: A cornerstone in Maersk’s sustainability roadmap

The agreement highlights Maersk’s commitment to reducing its reliance on fossil fuels by leveraging alternative sources like bio-methanol.

Produced from renewable biomass, bio-methanol has emerged as one of the leading alternative fuels available to the shipping industry, offering a feasible pathway to scale up green shipping solutions.

Maersk’s deal with LONGi serves as a key example of how large-scale sourcing of alternative fuels can drive forward decarbonisation initiatives within logistics and global shipping.

The choice to partner with LONGi was a strategic one; LONGi is not only a pioneer in the solar and renewable energy sector but has also collaborated with Maersk on ocean freight and logistics services as the company’s global operations expanded. This longstanding partnership now enters a new phase, with LONGi taking on a prominent role in Maersk’s transition towards bio-methanol and reduced GHG emissions.

"China continues to play a pioneering role and it is encouraging to also see strong market developments in other geographies as well."

LONGi’s facility, expected to be fully operational by the end of the decade, is among several other methanol production projects Maersk has secured across different regions. The logistical advantages of multiple global sources strengthen Maersk’s ability to adapt and respond to shifting energy needs within the supply chain.

The need for global standards in green shipping fuels

A vital challenge in scaling alternative fuels for shipping is the pricing gap that still exists between fossil fuels and green alternatives.

Maersk and other industry leaders have been vocal advocates for change, calling for the International Maritime Organisation (IMO) to introduce a global green fuel standard and a pricing structure to level the field for sustainable fuel options.

Maersk’s new sourcing deal with LONGi not only represents a substantial step toward its emissions reduction goals but also demonstrates its dedication to a future where bio-methanol and other renewable fuels play a prominent role in the global logistics sector.

As Maersk continues to pursue alternative fuel sourcing partnerships worldwide, it strengthens its position as an industry leader committed to reshaping shipping for a sustainable future.

Make sure you check out the latest edition of Procurement Magazine and also sign up to our global conference series - Procurement & Supply Chain. 

Procurement Magazine is a BizClik brand.