Billionaire Maersk Family Forms Green Methanol Firm for Shipping
(Bloomberg) -- The billionaire family behind A.P. Moller-Maersk A/S is forming a new company that will produce green methanol in a bid to help cut emissions from the shipping industry, one of the world’s biggest polluters.
The company, called C2X, will build and operate “large-scale” production facilities and expects an annual capacity of more than three million tons green methanol by 2030, according to a statement from family fund A.P. Moller Holding A/S, or APMH, on Thursday. That’s a significant addition to an industry facing a massive shortage of carbon neutral fuel.
There’s currently about 153,000 tons of green methanol production capacity in operation around the world, including demonstration plants that might not be selling volumes commercially as well as those producing synthetic methanol, according to estimates by BloombergNEF. APMH estimates global demand for methanol could triple to about 300 million tons a year by 2050, with most being for the green kind.
Weaning the shipping industry off oil is a key component in the fight against global warming.
Maersk, which operates a fleet of about 700 container ships, is alone responsible for about 0.1% of all human-made CO2 emissions. The Copenhagen-based company has identified green methanol as the best technology to achieve its goal of becoming carbon neutral in 2040.

C2X will sell to the shipping industry as well as to chemical companies. Its main owner will be APMH, which has assets of about $110 billion and is run by Robert Maersk Uggla, the great-grandson of the shipping firm’s founder. Maersk will own a 20% stake, the companies said, without providing financial details.
The new company will be led by Brian Davis, an ex-Shell Plc oil-industry veteran, while the finance chief will be Alastair Maxwell, formerly of Morgan Stanley and Goldman Sachs Group Inc. It will start with 60 employees and is currently pursuing projects located near the Suez Canal in Egypt and in Spain.
Maersk has said the biggest threat to its green transition is the lack of fuel which presents a “chicken-and-egg” problem: few energy companies produce green methanol because there’s presently little demand, while ship owners are reluctant to build green vessels because the fuel market is so small.

But there are signs green methanol is now gaining traction. This year, container lines have requisitioned more than three times as many ships that can sail on the fuel compared with on liquefied natural gas, which doesn’t reduce emissions as much, according to BloombergNEF.
Maersk has ordered 25 green methanol ships, with the first due to be named by European Commission President Ursula von der Leyen in a ceremony later on Thursday in Copenhagen.
©2023 Bloomberg L.P.
KEEPING THE ENERGY INDUSTRY CONNECTED
Subscribe to our newsletter and get the best of Energy Connects directly to your inbox each week.
By subscribing, you agree to the processing of your personal data by dmg events as described in the Privacy Policy.
More renewables news

Saudis Make a Splash at Oil Gathering in Canada’s Energy Capital
Sep 21, 2023
First Solar Urges US to Get Tough on Trade as Module Prices Sink
Sep 21, 2023
It’s Going to Be More Expensive to Visit Iceland
Sep 20, 2023
Sunak Was Told Diluting Green Policies Would Risk Net Zero
Sep 20, 2023
Sunak Considers Diluting Green-Energy Policies, Delaying Diesel Ban
Sep 20, 2023
An Inside Look at Exxon’s White House Push to Subsidize Hydrogen From Gas
Sep 20, 2023
Abdul Latif Jameel signs renewable energy agreement with Amazon
Sep 20, 2023
TotalEnergies to invest US$300 mln in a new renewable JV in India
Sep 20, 2023
More than 250 organisations call for transformative target to triple renewable power capacity by 2030
Sep 20, 2023
UK to Boost Power Exports, Helped by Cheaper Polluting Costs
Sep 19, 2023
Hexagon sees growth for digital technology in the energy sector
Sep 18, 2023
Reducing Scope 3 emissions in floating offshore power plants
Sep 14, 2023
Gas markets to remain tight for the next few years, says WoodMac Chairman
Sep 11, 2023
Kent set for greater growth with acquisition by Nesma & Partners
Sep 07, 2023
Gas markets need to remain vigilant
Sep 07, 2023
Decoding the trends shaping the future of energy
Jun 14, 2023
Exploring ESG’s critical role in the journey to net zero
May 18, 2023
Clearing the air on carbon markets in the Middle East
Apr 26, 2023
The IEA’s outlook for global energy markets and the energy transition
Apr 05, 2023
2023 set to be an important year for the energy transition
Mar 22, 2023Partner content

Investing in a sustainable future: unleashing Asia's $10 trillion renewable energy opportunity

Accelerating the Energy Revolution: key forces driving the transition

With BlueH2 by T.EN Technip Energies aims to unleash your full blue potential

Automation is the key to LNG present and the future scenario for hydrogen
