Shipping giant AP Moller – Maersk (Maersk) has announced it is to spend over $1billion in decarbonising its fleet.
The firm has revealed that is has placed orders for eight large ocean-going container vessels capable of being operated on carbon neutral methanol with the first due for delivery in the first quarter of 2024.
The vessels will be built by Hyundai Heavy Industries (HHI) and have a nominal capacity of approx. 16,000 containers (Twenty Foot Equivalent – TEU). The agreement with HHI includes an option for 4 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,” said the firm.
It comes after 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.
The vessels come with a dual fuel engine setup. Additional capital expenditure (CAPEX) for the dual fuel capability, which enables operation on methanol as well as conventional low Sulphur fuel, will be in the range of 10-15% of the total price, enabling Maersk to take a significant leap forward in its commitment to scale carbon neutral solutions and lead the decarbonisation of container logistics.
“The time to act is now, if we are to solve shipping’s climate challenge,” said Soren Skou CEO, A.P. Moller – Maersk. “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 sizable market demand for the green fuels of the future is emerging at speed.”
Maersk said it will operate the vessels on carbon neutral e-methanol or sustainable bio-methanol as soon as possible. However, it added 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 said it is already in discussions on partnerships and collaborations with “relevant players”.
The vessels will be designed to have a flexible operational profile, enabling them to perform efficiently across many trades, and add flexibility regarding customer needs, explained 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.”
The new vessels come as part of Maersk’s ongoing fleet renewal program and will replace tonnage of more than 150,000 TEU which is reaching end-of-life and leaving the Maersk managed fleet between 2020 and Q1 2024.