Home / FLD / Maersk signs LOI with SunGas to supply green methanol

Maersk signs LOI with SunGas to supply green methanol

Maersk signs LOI with SunGas to supply green methanol
Photo courtesy of Maersk

A.P. Moller – Maersk, an integrated logistics company based in Copenhagen, Denmark, has entered into a Letter of Intent (LOI) with SunGas Renewables, Inc., a leader in providing technology and equipment systems for large-scale production of renewable fuels, as part of its strategy to decarbonise customers’ supply chains. Headquartered in Houston, Texas, U.S.A., SunGas Renewables, Inc. is a spin-out of GTI Energy, a leading research and training organization focused on developing, scaling, and deploying energy transition solutions based in Des Plaines, Illinois, U.S.A.

The Letter of Intent covers the production of green methanol from multiple facilities to be developed by SunGas in the United States from which Maersk intends to offtake full volumes of green methanol. The first facility is expected to begin operations in 2026 and have an annual production capacity of approximately 390,000 tonnes.

This is Maersk’s ninth such partnership to drive the acceleration of global production capacity for green methanol. Green methanol is defined as fuels with low (65-80% reduction) or very low (80-95% reduction) GHG emissions on a lifecycle basis compared to fossil fuel.

“Securing green marine fuels at a global scale within this decade will require rapid scale up of green methanol production capacity using a variety of technology and feedstock pathways. We are very pleased to welcome SunGas Renewables as a strategic partner in our efforts to achieve our goal of net zero greenhouse gas emissions in 2040 across our entire business, and to ensure meaningful progress is made within this decade in line with the Paris Agreement,” said Emma Mazhari, head of Green Sourcing and Portfolio Management, A.P. Moller – Maersk.

The SunGas facilities will utilise its flagship System 1000 platform to convert sustainably sourced residues from the forestry and wood products industries into green methanol.

“Our partnership with Maersk marks an important milestone for SunGas as we continue our mission to make a global impact in the energy transition. We applaud Maersk’s leadership in catalyzing decarbonization of the entire marine shipping industry and look forward to working together to accelerate growth of production capacity for green methanol marine fuels,” said Robert Rigdon, CEO of SunGas.

SunGas joins eight other strategic partners working to supply the green fuel needed for the 19 methanol-enabled container vessels Maersk currently has on order. The other partners are Carbon Sink, CIMC ENRIC, Debo, European Energy, Green Technology Bank, Orsted, Proman, and Wastefuel.