Maersk Partners with LONGi for Sustainable Bio-Methanol Supply

Global logistics leader Maersk has signed a long-term bio-methanol offtake agreement with China-based LONGi Green Energy Technology, as part of its strategy to lower greenhouse gas emissions across its expanding dual-fuel methanol fleet. This agreement aims to secure Maersk’s sustainable fuel sources and reduce the carbon footprint of its operations.

The bio-methanol, produced by LONGi at a facility in Xu Chang, China, will be derived from agricultural residues like straw and fruit tree cuttings, ensuring a 65% reduction in lifecycle greenhouse gas emissions compared to conventional fossil fuels. This biofuel will power Maersk’s dual-fuel vessels, seven of which are already operational, contributing to the company’s goal of decarbonizing its fleet in line with its sustainability commitments. The first bio-methanol volumes from LONGi are expected in 2026, with full-scale production ramping up toward the end of the decade.

“Bio and e-methanol continue to be the most promising alternative shipping fuels to scale up in this decade, and the agreement with LONGi serves as a testament to this. Global shipping’s main net-zero challenge is the price gap between fossil fuels and the alternatives with lower greenhouse gas emissions,” says Rabab Raafat Boulos, COO, Maersk.

As global demand for sustainable logistics solutions grows, Maersk has been actively pursuing alternative fuels to meet emissions reduction targets. The company’s existing methanol offtake agreements now cover over 50% of the projected fuel demand for its dual-fuel methanol fleet in 2027. This latest agreement with LONGi further strengthens Maersk’s global alternative fuels portfolio, which includes a variety of methanol projects in advanced stages of maturity.

“While we believe that the future of global logistics will see several pathways to net-zero, this agreement underscores the continued momentum for methanol projects that are pursued by ambitious developers across markets,” says Emma Mazhari, Head of Energy Markets, Maersk.

LONGi is anticipated to reach full capacity on bio-methanol production by the end of the decade, potentially allowing Maersk to further reduce emissions and support its vision for a greener shipping industry.