The world’s first commercial-scale e-methanol plant began operations in Denmark on Tuesday, with shipping giant Maersk set to buy part of the production as a low-emission fuel for its fleet of container ships.

The shipping sector is under pressure to find new sources of fuel after a majority of countries gave their backing to measures to help meet the International Maritime Organization’s targets towards elimating carbon emissions by 2050.

So far zero-emission shipping fuels, such as green ammonia and e-methanol, which are produced using renewable energy, have tended to be more expensive than conventional fuel largely because they are not produced at scale.

Located in Kasso in southern Denmark, the new plant, which has cost an estimated 150 million euros ($167 million), will produce 42,000 metric tons, or 53 million litres, of e-methanol per year, its joint owners Denmark’s European Energy and Japan’s Mitsui said.

Maersk will be a major customer. It operates 13 dual-fuel methanol container vessels that can be powered with fuel oil and with e-methanol and has ordered another 13 of the vessels.

It said, the plant’s annual production is enough to power one large 16,000 container vessel sailing between Asia and Europe.

For the smaller Laura Maersk, the world’s first dual-fuel container ship, with a capacity of more than 2,100 twenty-foot equivalent units, requires only 3,600 tons of fuel per year.

Source: globalbankingandfinance