EQNR - Maersk completes maiden voyage of world's first green methanol vessel

2023-09-14 06:46:26 ET

The world's first ever green methanol-enabled container vessel, ordered by Danish shipping giant Maersk ( OTCPK:AMKBY ), has completed its maiden voyage from South Korea to Copenhagen.

This is a landmark moment for the shipping industry, one of the biggest polluters accounting for ~3% of global carbon emissions.

"It's a really symbolic day of our energy transition, something concrete that we can actually demonstrate, not just commitments and hard work," Maersk CEO Vincent Clerc told CNBC. "This is the first step for us and for the industry as well."

Maersk is targeting net zero greenhouse gas emissions across its business in 2040, and this vessel will play a key role in achieving that goal.

The company had ordered the vessel in 2021 and has 25 such vessels on order. Rabab Boulos, chief infrastructure officer at Maersk, said the vessels will replace existing capacity in its fleet once phased in.

The new vessel has two engines - one powered by traditional fuels and the other run with green methanol. The container ship emits 100 tons of carbon dioxide less per day compared to diesel-based ships.

Other shipping companies have also ordered similar vessels, including Taiwan's Evergreen, although their carbon neutrality targets are less ambitious than Maersk.

A cause for concern is securing a steady supply of green methanol, as the fuel is scarce and expensive to transport. SEB analyst Ulrik Bak said the green methanol space hasn't ramped up fast enough, according to market participants.

Maersk has inked around nine deals with green methanol suppliers to ensure steady supply, including with Equinor ( EQNR ). "We are more confident today than we were a year ago (about securing supply)," said Clerc.

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