Maersk orders dual fuel ships

Saturday, 04 September 2021

A.P. Moller - Maersk has announced it will “introduce the first in a ground-breaking series of 8 large ocean-going container vessels capable of being operated on carbon neutral methanol”.

The vessels will be built by Hyundai Heavy Industries (HHI) and have a nominal capacity of 16,000 TEU. They will be classed by the American Bureau of Shipping and sail under the Danish flag. The contract includes an option for four additional vessels in 2025.

“The series will replace older vessels, generating annual CO2 emissions savings of around 1 million tonnes. As an industry first, the vessels will offer Maersk customers truly carbon neutral transportation at scale on the high seas,” Maersk said.

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Maersk noted that this move is in line with its customers’ expectations. “More than half of Maersk’s 200 largest customers have set – or are in the process of setting – ambitious science-based or zero carbon targets for their supply chains. As part of Maersk’s ongoing collaboration with customers, corporate sustainability leaders including Amazon, Disney, H&M Group, HP Inc., Levi Strauss & Co., Microsoft, Novo Nordisk, The Procter and Gamble Company, PUMA, Schneider Electric, Signify, Syngenta and Unilever have committed to actively use and scale zero carbon solutions for their ocean transport, with many more expected to follow”.

A.P. Moller - Maersk executives have previously said customers are willing to pay a premium for lower carbon shipping, but it is not known whether that premium will cover the additional costs of the vessels, fuel and other infrastructure. Maersk said the additional capex for the dual fuel system is in the range of 10-15%, but fuel costs over their lifetime are much less predictable at this point.

“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.

Maersk has earlier announced a partnership with REintegrate, a subsidiary of the Danish renewable energy company European Energy to produces 10,000 tons of carbon neutral e-methanol in Denmark. This, however, will only be sufficient for the much smaller 2,100 TEU methanol-powered feeder vessel Maersk will deploy in 2023.

Maersk said the new 16,000 TEU vessels have been designed “to have a flexible operational profile, enabling them to perform efficiently across many trades, and add flexibility regarding customer needs”. While Maersk is taking the lead on the water, the challenge of providing the fuel and related infrastructure to facilitate carbon neutral shipping needs to be taken up by fuel producers, ports and others.

“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. Further, this is a firm signal to fuel producers that sizeable market demand for the green fuels of the future is emerging at speed,” said Soren Skou, CEO, A.P. Moller - Maersk.

“We are very excited about this addition to our fleet, which will offer our customers unique access to carbon neutral transport on the high seas while balancing their needs for competitive slot costs and flexible operations,” added Henriette Hallberg Thygesen, CEO, Fleet & Strategic Brands, A.P. Moller - Maersk.”To us, this is the ideal large vessel type to enable sustainable, global trade on the high seas in the coming decades and from our dialogue with potential suppliers, we are confident we will manage to source the carbon neutral methanol needed.”

News Source : https://www.worldcargonews.com/news/maersk-orders-dual-fuel-ships-67066