A.P. Moller-Maersk, one of the largest container shippers globally with a market share of around 17%, is often regarded as an indicator of global trade trends.
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Copenhagen, DENMARK — Shipping behemoth Maersk proudly unveiled its inaugural container vessel powered by green methanol, marking a significant milestone for one of the world’s most environmentally damaging industries.
The newly ordered container ship features two engines: one utilizing conventional fuels and the other running on green methanol—an eco-friendly component derived from biomass or renewable power sources through the capture and conversion of carbon and hydrogen. This innovative vessel emits approximately 100 tons less carbon dioxide per day compared to traditional diesel-powered ships.
“Today is a symbol of our energy transition, a tangible demonstration of our commitment and hard work. It’s something everyone can see,” stated Maersk CEO Vincent Clerc in an interview with CNBC.
This is not only a significant step for Maersk, but for the entire industry as well. The ship was only ordered in 2021 and has already paved the way for 125 similar vessels to be ordered by different companies. According to Clerc, “This ship is truly a trendsetter for the whole industry.”
While other shipping companies, including Evergreen, have also ordered similar vessels, their carbon neutrality targets are less ambitious than Maersk’s.
Shipping currently accounts for around 3% of global carbon emissions, equivalent to those produced by major polluting countries. However, decarbonizing the sector has proved to be a formidable challenge.
Denmark’s Minister of Industry, Morten Bodskov, attributes this to the industry’s global nature.
According to the Organization for Economic Cooperation and Development, approximately 90% of globally traded goods are transported via ocean shipping.
“To achieve a global agreement, you need the backing of almost all countries, and considering this industry operates in a highly competitive market, that has been a critical factor,” Bodskov explained in an interview with CNBC.
Efforts to expedite decarbonization have faced numerous obstacles, exemplified by discussions on implementing a shipping tax.
In June, a coalition of 20 nations proposed a levy on shipping industry emissions. However, countries including China, Argentina, and Brazil expressed opposition to the idea.
On this issue, Maersk’s CEO expressed his support for a shipping tax. He stated, “We have long advocated for the implementation of a carbon tax to level the economic playing field and provide the right incentives for companies to fully embrace the green transition.”
He further added, “I’m concerned about the perception that the energy transition is a disadvantage rather than a tremendous opportunity.”
Supply Concerns
This vessel is the first of a broader order of 25 vessels scheduled for delivery in 2024. Maersk aims to achieve climate neutrality by 2040, and these new vessels will play a crucial role in meeting that deadline and updating its fleet of approximately 700 ships.
However, analysts fear that Maersk and its competitors may encounter difficulties in securing an adequate supply of green methanol. The fuel is scarce and expensive to transport.
“Based on industry insights and market participants, the production of green methanol hasn’t ramped up as quickly as anticipated,” explained Ulrik Bak, a research analyst at SEB, during an interview with CNBC.
He elaborated, “There will be a significant period during which there will be more methanol vessels than adequate green methanol supply to meet their demands.”
In an effort to tackle this issue, Maersk has signed at least nine agreements with green methanol suppliers from around the world, urging them to increase their production capacity.
Clerc acknowledged, “This has been our primary challenge for a while,” and emphasized the need to scale up production. He added, “We are more optimistic today than we were a year ago in terms of securing a stable supply.”
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