Maersk partners with Carbon Sink to accelerate production of green marine fuels

Danish distribution conglomerate Maersk has signed a memorandum of understanding to facilitate the production of more green methanol, a sustainable alternative to traditional marine fuel. This marks the start of a new partnership between Maersk and Carbon Sink, a US-based company that produces sustainable fuels.

This partnership envisages the development of new manufacturing facilities in the US, the first of which will be located within an existing bioethanol facility in South Dakota, sharing land with Arizona-based energy company Red River Energy.

The companies won’t just share space, however, as Carbon Sink will use waste CO2 from the Red River Energy facility and recycle those emissions into the production of green methanol.

Maersk claims that this facility has a production capacity of about 100,000 tons per year.

It’s scheduled to come online in 2027, and Mearsk says it intends to buy the entire volume of the facility.

Berit Hinnemann, Head of Green Fuels Sourcing at Maersk, said: “Securing green fuels at scale this decade is critical to our efforts to decarbonize our fleet.”

He elaborated: “We have set a net-zero target for 2040 for our entire business – but to remain in line with the Paris Agreement, we have also set targets for 2030 to ensure meaningful progress in this decade .”

This is the eighth such agreement Maersk has entered into this year to ensure a strong future of green methanol production to power its recently ordered green-fuel capable oceangoing vessels.

Steve Meyer, Chief Executive of Carbon Sink, was positive about the partnership, saying, “We are delighted to be working with Maersk to support their mission to decarbonize the shipping sector. Carbon Sink brings a tremendous wealth of knowledge, experience and partnerships to help them achieve their ambitious business goals.”

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