As part of the strategy to decarbonise its customers’ supply chains, A.P. Moller – Maersk has entered into a green methanol partnership with US-based project developer Carbon Sink LLC.
The two parties have signed a Letter of Intent covering the development by Carbon Sink of green methanol production facilities in the United States.
The first facility will be co-located with the Red River Energy existing bioethanol plant in Rosholt, South Dakota, US, and will have a production capacity of approximately 100,000 tonnes per year.
The commercial start is anticipated in 2027 and Maersk intends to purchase the full volume produced at the plant, with options for the output of subsequent Carbon Sink facilities at other locations.
Carbon Sink uses commercially available technology to produce green methanol by combining green hydrogen from electrolysis of water using additional renewable electricity and biogenic CO2.
The CO2 for the first project will be waste CO2 captured from the Red River Energy bioethanol plant, recycling those emissions into green methanol.
“We are very pleased to be working with Maersk in support of their mission to decarbonise the shipping sector. Carbon Sink brings a vast wealth of knowledge, experience and partnerships to help them achieve their ambitious corporate goals,” commented Steve Meyer, CEO of Carbon Sink.
He added, “Our multi-project development strategy creates a pathway for the supply of significant volumes of green methanol to help meet the demand of Maersk’s growing dual-fuel ship fleet.”
