Posted on December 19, 2022
As part of its strategy to decarbonize customers’ supply chains, A.P. Moller – Maersk (Maersk) has entered a green* methanol Letter of Intent with U.S. 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. This is Maersk’s 9th such partnership to drive the acceleration of global production capacity for green methanol.
The Letter of Intent covers the production of green methanol from multiple facilities to be developed by SunGas in the United States from which Maersk intends to offtake full volumes of green methanol. The first facility is expected to begin operations in 2026 and have an annual production capacity of approximately 390,000 tonnes.
Securing green marine fuels at a global scale within this decade will require 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.
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 decarbonization of the entire marine shipping industry and look forward to working together to accelerate growth of production capacity for green methanol marine fuels.
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.
*Green is defined as fuels with low (65-80% reduction) or very low (80-95% reduction) GHG emissions on a lifecycle basis compared to fossil fuel.
About SunGas Renewables
SunGas is a clean energy and technology solutions company providing proven technology systems that transform sustainability sourced renewable feedstocks into hydrogen and carbon monoxide – the building blocks necessary for large scale production of renewable fuels. SunGas has developed its System 1000 product line for renewable synthesis gas production needed for manufacturing hydrogen, bio-methane and renewable biofuels such as gasoline, diesel, sustainable aviation fuel and marine shipping fuels. SunGas is taking a leading role in decarbonization and offers its System 1000 to third parties for hydrogen and biofuels production while also developing and investing in low-carbon biofuels businesses.
SunGas is headquartered in Houston, Texas. For more information, visit www.sungasrenewables.com.
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.