Press Release
Maersk & Carbon Sink sign strategic partnership to accelerate green marine fuels production
ANNAPOLIS, MD, and Copenhagen, Denmark, November 16, 2022 — As part of the strategy to decarbonise its customers’ supply chains, A.P. Moller - Maersk (Maersk) has entered a green* methanol partnership with U.S. based project developer Carbon Sink LLC. This is Maersk’s 8th such agreement in the efforts to accelerate global production of green methanol.
The parties 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, South Dakota, USA, and will have a production capacity of approximately 100,000 tonnes per year.
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 decarbonisation efforts. 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." -- Berit HinnemannHead of Green Fuels Sourcing, A.P. Moller - Maersk
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 decarbonise the shipping sector. 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." -- Steve MeyerCEO of Carbon Sink
Carbon Sink joins seven other strategic partners working to secure the green fuel needed for the 19 container vessels Maersk currently has on order which 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 tonnes per year by the end of 2025. A seventh partnership with Debo was added in August.
*Green means fuels or energy that have low or very low greenhouse gas emissions on a total life cycle basis.
About Carbon Sink LLC;
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 both current and future regulatory obligations as well as growing customer demand for more sustainable products and services. www.carbonsinkllc.com.
About Maersk:
A.P. Moller - Maersk is an integrated logistics company working to connect and simplify its customers’ supply chains. As a global leader in logistics services, the company operates in more than 130 countries and employs over 100,000 people world-wide. Maersk is aiming to reach net zero emissions by 2040 across the entire business with new technologies, new vessels, and green fuels.
For further information contact:
Carbon Sink
Jim McVaney
Media and Investor Contact
Tel: +1 800 583 5223 ext. 2
Email Jim McVaney
A.P. Moller - Maersk:
Rikke Marie DahlSenior
Press Officer
+45 2922 2143
Tom Boyd
Media Relations Manager
+1 704 430 3442
