Orsted and AP Moller Maersk have signed a letter of intent to partner on a 675MW power-to-X facility in the US supplied by 1200MW of onshore wind and solar energy.
The P-to-X plant on the Gulf of Mexico coast will produce approximately 300,000 tonnes of e-methanol a year, which Maersk will off-take for its newly ordered fleet of 12 methanol-powered vessels, Orsted said.
Biogenic carbon needed to produce e-methanol will be extracted through carbon capture at one or more large point sources, the company added.
The project is targeted to be commissioned in the second half of 2025.
A final investment decision could be made in late 2023.
Orsted chief commercial officer Martin Neubert said: “We commend Maersk’s clear and ambitious action, which has made the company a leader in the difficult task of reducing the climate impact of the maritime industry.
“Partnerships with large off-takers of green fuels, like Maersk, is an important part of Orsted’s strategic journey, as we broaden our Power-to-X footprint across the world to become a global leader in renewable hydrogen and green fuels.
“The project with Maersk is our first in the US, and we look forward to help accelerating the US.
“Power-to-X market while creating local jobs and economic activity, just as we’ve done in the growing offshore wind industry in the US.”
AP Moller Maersk fleet and strategic brands chief executive Henriette Hallberg Thygesen said: “To transition towards decarbonization, we need a significant and timely acceleration in the production of green fuels.
“Green methanol is the only market-ready and scalable available solution today for shipping. Production must be increased 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.”