Ørsted, Maersk sign green fuels agreement
Ørsted is planning to develop a power-to-x-facility on the U.S. Gulf Coast to fuel Maersk’s newly ordered fleet of 12 methanol-powered vessels. The companies signed a letter of intent (LOI) on record-breaking offtake agreement for green fuels in the maritime industry.
Over the past two decades, GHG emissions from the global maritime industry have risen sharply to account for around 2% of global energy-related emissions. As the world races to fight climate change, the maritime sector urgently needs new zero-emission fuels at scale to reduce its climate impact.
On the U.S. Gulf Coast, Ørsted will develop a 675 MW power-to-x facility that will produce approximately 300,000 tpy of e-methanol, which Maersk will offtake for its ordered fleet of 12 methanol-powered vessels. The facility will be powered by approximately 1.2 GW of renewable energy from new onshore wind and solar PV farms. The biogenic carbon needed to produce e-methanol will be extracted through carbon capture at one or more large point sources.
The project is targeted to be commissioned in the second half of 2025. The FID could be made in late 2023.
"We commend Maersk’s clear and ambitious action, which has made the company a leader in the difficult task of reducing the climate impact of the maritime industry," said Martin Neubert, Deputy CEO and Chief Commercial Officer at Ørsted. "Partnerships with large offtakers of green fuels, like Maersk, is an important part of Ørsted’s strategic journey, as we broaden our power-to-x footprint across the world to become a global leader in renewable hydrogen and green fuels. The project with Maersk is our first in the U.S., and we look forward to help accelerating the U.S. power-to-x market while creating local jobs and economic activity, just as we’ve done in the growing offshore wind industry in the U.S."
"To transition towards decarbonization, we need a significant and timely acceleration in the production of green fuels," said Henriette Hallberg Thygesen, CEO of Fleet & Strategic Brands, A.P. Moller at Maersk. "Green methanol is the only market-ready and scalable available solution today for shipping. Production must be increased 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."
Comments