Shipowner AP Moller-Maersk has confirmed a pioneering order for up to 12 neo-panamax-size containerships which will be able to operate on carbon neutral or green methanol.
Maersk said it has contracted eight 16,000-teu vessels at Hyundai Heavy Industries under a deal that includes an option for four additional vessels.
The initial vessel will deliver in the first quarter of 2024. The options have handover dates in the following year.
The order confirms a TradeWinds report of 8 July. At the time, Maersk declined to comment.
Maersk said the newbuildings will replace more than 150,000 teu, which is reaching end-of-life and is leaving the company’s managed fleet between 2020 and the first quarter of 2024.
It said these older vessels, generating annual CO2 emissions savings of around 1m tonnes and offer “truly carbon neutral transportation at scale”.
Capex question
The company said the additional capital expenditure (capex) for the dual-fuel vessels will be in the range of 10% to 15% of the total price.
It said total capex for the vessels is included in current guidance for 2021 to 2022 of $7bn.
Ole Graa Jakobsen, head of fleet technology at Maersk, said the ships were priced at $175m each.
The company said the methanol propulsion system was developed with MAN Energy Solutions, Hyundai (Himsen) and Alfa Laval. It said this represents “a significant scale-up of the technology” from the previous size limit of around 2,000 teu.
Challenging availability
Maersk said it will operate the vessels on carbon-neutral e-methanol or sustainable bio-methanol as soon as possible.
“Sourcing an adequate amount of carbon-neutral methanol from day one in service will be challenging, as it requires a significant production ramp up of proper carbon-neutral methanol production, for which Maersk continues to engage in partnerships and collaborations with relevant players,” the company said.
On 19 August, Maersk announced that it is partnering with renewable energy company European Energy and its subsidiary REintegrate, which are setting up a new facility in Denmark to produce around 10,000 tonnes of carbon-neutral e-methanol.
The fuel will be used to supply Maersk’s first 2,100 methanol-fuelled feedership newbuilding, which delivers Hyundai Mipo Dockyard in mid-2023.
Customer targets
Maersk said that more than half of its 200 customers have, or are in the process of, setting “ambitious science-based or zero-carbon targets” for their supply chains.
The company quoted and included some comments from big names including Amazon, Disney, H&M Group, HP Inc, Levi Strauss & Co, Microsoft, The Procter and Gamble Company, PUMA, Schneider Electric and Unilever as being among those who have committed to actively use and scale zero-carbon solutions for their ocean transport, adding that more are expected to follow.
Maersk chief executive Soren Skou said: “The time to act is now, if we are to solve shipping’s climate challenge.
“This order proves that carbon-neutral solutions are available today across container vessel segments and that Maersk stands committed to the growing number of our customers who look to decarbonise their supply chains.
“This is a firm signal to fuel producers that sizeable market demand for the green fuels of the future is emerging at speed.”
This story has been updated with confirmation of the ships' price.
- H&M Group head of sustainability Leyla Ertur:
“As an industry leader, H&M Group has a responsibility to fight climate change. We have the ambition to become climate neutral by 2030 and climate positive by 2040. Maersk’sinvestment in large vessels operating on green methanol is an important innovative step supporting H&M Group’s climate goals within International Freight and we are proud to take part in this pioneer journey."
- HP Inc chief supply chain officer Antoine Simonnet:
“We recently announced some of the most ambitious climate action goals in our industry and to achieve them we are implementing more sustainable transportation solutions within our supply chain, including this green fuels collaboration with Maersk."
- Signify head of sustainability Maurice Loosschilder:
"The next decade has to be one of ‘climate action.’ We’ve set a new goal to go beyond carbon neutrality and to double the pace at which we will meet the 1.5°C scenario set out by the Paris Agreement. The pledge is to meet this ambitious target across our entire value chain and do this six years early. Our renewed partnership with Maersk will help us to scale zero carbon solutions in our supply chain and logistical operations, providing rich pickings for emission reductions.”
- Unilever Head of Logistics and Fulfilment Michelle Grose:
“Unilever is committed to accelerating the transition to clean transport solutions, not just in our own operations but along global value chains as we work to achieve net zero emissions by 2039. With logistics and distribution accounting for around 15% of our greenhouse gas emissions footprint, it’s important that we work with partners shifting to lower carbon fuels. We are proud to partner with Maersk as they pioneer carbon neutral transportation on the high seas.”
