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WasteFuel signs renewable methanol off-take deal

US-based WasteFuel Global LLC (WasteFuel), a developer of low-carbon transportation biofuels, has announced that it has signed a commercial-scale renewable methanol partnership, which is set to help accelerate the decarbonization of the shipping sector. Initially, this renewable methanol will be made from the conversion of municipal waste in South America by 2024.

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WasteFuel Global LLC (WasteFuel) has signed a commercial-scale renewable methanol partnership with A.P. Moller – Maersk, which is set to help accelerate the decarbonization of the shipping sector (image courtesy Maersk).

According to a statement, global container shipping major A.P. Moller – Maersk has declared its intention to buy 30 000 tonnes per annum of WasteFuel renewable methanol, in order to help fulfill the demand of its 12 new green methanol powered ships planned to be operational by 2024.

To drive the massive scale-up of green fuels we need to transition towards decarbonization, production must increase in time. Green methanol is the only market-ready sustainable fuel available today for shipping and production must be accelerated through collaboration across the ecosystem and around the world. That is why these partnerships mark an important milestone to get the transition to green energy underway, said Henriette Hallberg Thygesen, CEO of Fleet & Strategic Brands, A.P. Moller – Maersk.

This announcement builds upon Maersk Growth, the Corporate Venture arm of A.P. Moller, investment in WasteFuel in September 2021, under its decarbonization theme, as part of Maersk’s strategy to reach net-zero by 2040.

Initially, this green methanol will be made from the conversion of municipal waste in South America by 2024, but both partners expect expanding projects and production of green methanol further.

This partnership has significant implications for some of the largest consumer product businesses in the world, with green fuel set to reduce the emissions footprint of the products bought and shipped globally.

Last year, many of the world’s largest companies including Amazon, Ikea, Apple, Nestle, and Patagonia pledged to reach net-zero emissions by 2050. Ships transport nearly as much as 90 percent of globally traded goods by volume and produce nearly 1.1 billion tonnes of carbon dioxide emissions, which rivals the annual output of Germany, the world’s sixth-largest emitter. Without green fuel solutions, corporate net-zero commitments will be impossible to meet, said Trevor Neilson, Co-founder, Chairman, and CEO of WasteFuel.

Project pipeline

WasteFuel uses “proven technologies” to convert waste – which would otherwise decompose releasing greenhouse gasses (GHGs) – into low carbon fuels, driving solutions to decarbonize air, land, and sea transport.

In addition to the green methanol project with Maersk, the company has several biorefinery projects underway. These include a project in the Philippines to produce sustainable aviation fuel (SAF) and bio-methanol in partnership with Prime Infra and NetJets and projects across the Americas and Asia to produce renewable natural gas (RNG) and green methanol.

Compared to conventional fuels, WasteFuel aims for its marine fuels to reduce CO2 emissions by 95 percent, to cut nitrogen oxide (NOx) emissions by up to 80 percent, and eliminate sulphur oxide (SOx) and particulate matter (PM) emissions.

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