A.P. Moller-Maersk (MAERSKb.CO) said on Wednesday it had signed a contract securing green methanol as the world’s largest shipping firm gears up to operate its first carbon-neutral ship in 2023.
With about 90% of world trade transported by sea, global shipping accounts for nearly 3% of the world’s CO2 emissions. Maersk needs to have a carbon-neutral fleet by 2030 to meet its target of net-zero emissions by 2050.
“Yes, it’s one vessel, but it’s a prototype for a scalable carbon-neutral solution for shipping,” Morten Bo Christiansen, Maersk’s head of decarbonisation, told Reuters.
Maersk said it had signed its first deal with Denmark’s REintegrate to produce roughly 10,000 tonnes of carbon neutral e-methanol, which the vessel will need to operate each year.
The company is also working on tackling challenges in securing the supply of fuel, which Christiansen pegged it at 20 million tonnes for the entire fleet. As the name suggests, green methanol is produced by using renewable sources such as biomass and solar energy.