As part of its strategy to decarbonize customers’ supply chains, Denmark-headed global container shipping, and logistics major A.P. Moller - Maersk (Maersk) has announced that it has signed a "green" methanol Letter of Intent (LoI) with the US-based SunGas Renewables, Inc., a spin-out of GTI Energy, and a leader in providing technology and equipment systems for large-scale production of renewable fuels.
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The LoI which was announced in December 2022 covers the production of green methanol from multiple facilities to be developed by SunGas Renewables in the United States (US) from which Maersk intends to offtake full volumes of green methanol.
This is Maersk’s 9th such partnership to drive the acceleration of global production capacity for green methanol – defined as fuels with low (65-80 percent reduction) or very low (80-95 percent reduction) greenhouse gas (GHG) emissions on a lifecycle basis compared to fossil fuel.
Securing green marine fuels at a global scale within this decade will require a rapid scale-up of green methanol production capacity using a variety of technology and feedstock pathways. We are very pleased to welcome SunGas Renewables as a strategic partner in our efforts to achieve our goal of net zero greenhouse gas emissions in 2040 across our entire business and to ensure meaningful progress is made within this decade in line with the Paris Agreement, said Emma Mazhari, Head of Green Sourcing and Portfolio Management, A.P. Moller – Maersk.
Deploy SunGas System 1000 platform
SunGas Renewables is a clean energy and technology solutions company that has developed a proprietary technology to transform sustainability-sourced renewable feedstocks into hydrogen and carbon monoxide (CO), the platform gases to produce renewable products.
The company has developed its System 1000 platform product line for renewable synthesis gas (SNG) production needed for the manufacturing of hydrogen, biomethane (aka renewable natural gas – RNG), and renewable biofuels such as gasoline, diesel, sustainable aviation fuel (SAF), and marine shipping fuels such as green methanol.
The first SunGas facility is expected to begin operations in 2026 and will have an annual production capacity of approximately 390 000 tonnes.
The facilities will utilize its flagship System 1000 platform to convert sustainably sourced residues from the forestry and wood products industries into green methanol.
Our partnership with Maersk marks an important milestone for SunGas as we continue our mission to make a global impact in the energy transition. We applaud Maersk’s leadership in catalyzing the decarbonization of the entire marine shipping industry and look forward to working together to accelerate the growth of production capacity for green methanol marine fuels, said Robert Rigdon, CEO of SunGas.
SunGas joins eight other strategic partners working to supply the green fuel needed for the 19 methanol-enabled container vessels Maersk currently has on order.
The other partners are Carbon Sink, CIMC ENRIC, Debo, European Energy, Green Technology Bank, Orsted, Proman, and Wastefuel.
