European Energy signs e-methanol supply pact with Maersk

Danish renewables developer European Energy said it has signed a letter of intent with compatriot AP Moller-Maersk A/S (CPH:MAERSK-A; CPH:MAERSK-B) to supply the shipping company with up to 300,000 tonnes e-methanol annually starting from 2025/26.

This is one of six partnerships that Maersk announced on Thursday to source at least 730,000 tonnes of green methanol a year.

The agreement will see European Energy develop and build large-scale e-methanol projects in North America and South America together with new renewable electricity facilities developed by the company. It adds to an existing agreement under which European Energy will supply e-methanol from its plant in Kasso, Denmark for Maersk to operate its first feeder vessel in 2023. Maersk has ordered 12 large container vessels capable of running on green methanol.

“With this new letter of intent, we significantly increase the size of our e-methanol projects and locate them in areas with some of the most inexpensive renewable energy available,” said European Energy chief executive Knud Erik Andersen and added this will lead to cheaper e-methanol and facilitate the move away from fossil shipping fuel.

According to Henriette Hallberg Thygesen, Maersk head of fleet and strategic brands, green methanol is the only market-ready and scalable available solution at the moment for shipping.

European Energy recently ordered a 50-MW electrolysis plant from Siemens Energy AG (ETR:ENR) for its e-methanol project in Kasso.

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