European Energy and Maersk have signed a letter of intent on the development of e-methanol projects in the Americas.
As part of the partnership, European Energy will develop and construct large scale e-methanol projects in North and South America with production starting in 2025 and 2026.
Maersk will be the sole off-taker on a multi-year contract of the e-methanol from the plants.
The electrolysers will be located in connection with new renewable electricity facilities developed and constructed by European Energy.
European Energy chief executive Knud Erik Andersen said: “We are very happy to further strengthen our partnership with Maersk which began with the supply agreement of e-methanol from our plant in Kassø, Denmark.
“With this new letter of intent, we significantly increase the size of our e-methanol projects and locate them in areas with some of the most inexpensive renewable energy available.
“This will provide for even lower cost of e-methanol and accelerate the transition away from fossil-based shipping fuel.”
AP Moller-Maersk fleet and strategic brands CEO Henriette Hallberg Thygesen added: “Green methanol is the only market-ready and scalable available solution today for shipping.
“Production must be increase 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.”
With the first e-methanol agreement with European Energy in Denmark, Maersk secured access to the required amount of e-methanol needed to operate its first feeder vessel in 2023.
Since then, Maersk has ordered 12 large container vessels with the ability to operate on green methanol.
These vessels will be on the water from 2024 and are part of Maersk’s ambition to become climate neutral across the entire business by 2040.