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Maersk, Carbon Sink Ink Green Deal

As part of the strategy to decarbonize its customers’ supply chains, A.P. Moller-Maersk has entered a green methanol partnership with U.S.-based project developer Carbon Sink LLC.

The companies have signed a letter of intent covering the development by Carbon Sink of green methanol production facilities in the United States. The first facility will be co-located with the Red River Energy existing bioethanol plant in Rosholt, S.D, and will have a production capacity of approximately 100,000 tons per year. This is Maersk’s eighth such agreement in the efforts to accelerate global production of green methanol.

The commercial start is anticipated in 2027 and Maersk intends to purchase the full volume produced at the plant, with options for the output of subsequent Carbon Sink facilities at other locations.

“Securing green fuels at scale in this decade is critical in our fleet decarbonization efforts,” said Berit Hinnemann, head of green fuels sourcing at Maersk. “We have set a 2040 net zero target for our entire business. But importantly to stay in line with the Paris Agreement, we have also set 2030 targets to ensure meaningful progress in this decade. Partnerships are essential on this journey and I am very pleased to welcome Carbon Sink on board.”

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Carbon Sink uses a commercially available technology to produce green methanol by combining green hydrogen from electrolysis of water using additional renewable electricity and biogenic CO2. The CO2 for the first project will be waste CO2 captured from the Red River Energy bio-ethanol plant, recycling those emissions into green methanol.

“We are very pleased to be working with Maersk in support of their mission to decarbonize the shipping sector,” Carbon Sink CEO Steve Meyer said. “Carbon Sink brings a vast wealth of knowledge, experience and partnerships to help them achieve their ambitious corporate goals. Our multi-project development strategy creates a pathway for the supply of significant volumes of green methanol to help meet the demand of Maersk’s growing dual-fuel ship fleet.”

Carbon Sink joins seven other strategic partners working to secure the green fuel needed for the 19 container vessels Maersk currently has on order that are capable of operating on green methanol. In March, Maersk announced six partnerships with CIMC ENRIC, European Energy, Green Technology Bank, Orsted, Proman and WasteFuel with the intent of sourcing at least 730,000 tons per year by the end of 2025. A seventh partnership with Debo was added in August.

Maersk defines green fuels or energy that have low or very low greenhouse gas emissions on a total life cycle basis.

Carbon Sink is developing large-scale projects for converting industrial CO2 streams to fuels and chemicals using commercially available technologies. Carbon Sink will provide chemical and transportation companies with solutions that help them lower their greenhouse gas emissions and meet current and future regulatory obligations, as well as growing customer demand for more sustainable products and services.