Maersk could use 15-20% alternative fuels for its fleet in 2030

HD Korea Shipbuilding & Offshore Engineering Co

28/11/2024 12:13

By Florence Tan
       SINGAPORE, Nov 28 (Reuters) - Alternative fuels could
account for up to a fifth of A.P. Moller-Maersk's  MAERSKb.CO 
marine fuel consumption in 2030 as part of its goal to reach net
zero by 2040, a senior company executive said on Thursday.
    The container shipping giant typically consumes between 10
and 11 million metric tons of fuel oil equivalent per year, of
which 3% were alternative fuels last year, Emma Mazhari, vice
president, head of energy markets, told reporters.
    The world's fleet moves more than 80% of global trade and
contributes about 3% of global greenhouse gas (GHG) emissions.
    "We would probably look at 15% to 20% green fuel or
renewable fuel in 2030," Mazhari said, adding that this depended
on how well the company performed on its energy efficiency
measures.
    "It's going to be biodiesel. Green methanol is going to
feature very heavily, and bio-methane as well," she said.
Bio-methane production is growing in Europe and North America
which can be used as fuel in ships that use liquefied natural
gas (LNG), she added.
    The company launched on Thursday its latest dual-fuelled
methanol container vessel A.P. Moller, part of a fleet of 18
such ships scheduled to be delivered this year and next.
    The Danish-flagged vessel had been filled with 500 metric
tons of green methanol fuel before it left Hyundai Heavy
Industries' shipyard in Ulsan, South Korea, Maersk said.
    It has the capacity to carry 16,000 cubic metres of methanol
which would allow it to sail from Asia to Europe and back.
    Maersk has signed a contract with China's LONGi Green Energy
Technology  601012.SS  to buy bio-methanol which will start in
2026.
    While more shippers have placed orders for methanol
dual-fuelled vessels, green methanol supply has yet to catch up
with demand. Also, ships require about double the volume of
methanol than traditional fuel due to the lower energy
intensity.
    Alternative fuels cost more than double conventional fuels,
Maersk President Asia Pacific Ditlev Blicher said.
    "Like many other green technologies, whether it's solar
panels or EV vehicles, you need scale and it needs to become
commercially viable for it really to take off," he said.
    "What we need in that respect, is for regular regulations to
push up the price of the dirty fuels."
    Maersk is working with the International Maritime
Organization (IMO) to get such regulations in place, Blicher
said.
    The IMO's Marine Environment Protection Committee is
scheduled in April to set a global regulatory structure for
reducing GHG emissions in the maritime industry.

 (Reporting by Florence Tan
Editing by Mark Potter)
 ((Florence.Tan@thomsonreuters.com; Reuters Messaging:
florence.tan.thomsonreuters.com@reuters.net))