Maersk, a global leader in integrated container logistics, and Ørsted, a global leader in renewable energy, have signed a letter of intent (LOI) to collaborate on a new Power-to-X facility in the US. This could be a landmark project in the green transformation of international deep-water shipping and set the bar for future large-scale production of green maritime fuels.
Ørsted will construct a 675 MW Power-to-X facility on the US Gulf Coast, which would produce around 300,000 tonnes of e-methanol per year for Maersk’s recently ordered fleet of 12 methanol-powered vessels. The plant will be fueled by 1.2 GW of renewable energy generated by new onshore wind and solar PV plants. Carbon capture at one or more large point sources will provide the biogenic carbon required to generate e-methanol.
The project is expected to be completed in the second half of 2025, making it by far the most ambitious project for producing e-methanol on a large scale and a driving force in the maritime sector’s decarbonisation. Late in 2023, a final investment decision could be made.
Earlier this month, in response to Russia’s invasion of Ukraine, the Danish energy provider Ørsted has decided to stop sourcing biomass and coal from Russia for its power plants. The company has decided not to contract any Russian companies for its renewable energy projects because it finds the situation “deeply disturbing.” It has also stated that it will not enter into any new contracts with Russian enterprises and will ensure that no direct Ørsted suppliers for the development of renewable assets are Russian.
REGlobal’s Views: With the global discussion around decarbonisation of shipping, this agreement and the success of this project will give both Maersk and Ørsted early mover advantage in this space.
