Maersk, Carbon Sink Sign Partnership to Accelerate Green Marine Fuels Production

Maersk and Carbon Sink have signed a letter of intent covering the development of green methanol production facilities in the U.S. Photo: A.P. Moller – Maersk.

As part of a strategy to decarbonize its customers’ supply chains, Danish shipping company A.P. Moller-Maersk has entered a green marine fuels partnership with Annapolis, Md.-based project developer Carbon Sink.

The parties have signed a letter of intent covering the development by Carbon Sink of green methanol production facilities in the U.S. The first facility is to be co-located with the Red River Energy existing bioethanol plant in Rosholt, South Dakota, with a production capacity of about 100,000 tons per year. 

The commercial start is anticipated in 2027. Maersk has said that it intends to purchase the full volume produced at the plant, with options for the output of subsequent Carbon Sink facilities at other locations. 

“Securing green fuels at scale in this decade is critical in our fleet decarbonization efforts,” Maersk Head of Green Fuels Sourcing Berit Hinnemann said. “We have set a 2040 net zero target for our entire business—but importantly to stay in line with the Paris Agreement, we have also set 2030 targets to ensure meaningful progress in this decade. Partnerships are essential on this journey—and I am very pleased to welcome Carbon Sink on board.”

Carbon Sink uses a 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 decarbonize the shipping sector,” Carbon Sink CEO Steve Meyer said. “Carbon Sink brings a vast wealth of knowledge, experience and partnerships to help them achieve their ambitious corporate goals.”

“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,” he added.

Carbon Sink joins seven other strategic partners working to secure the green fuel needed for the 19 container vessels Maersk currently has on order which are capable of operating on green methanol.

In March, Maersk announced six partnerships with CIMC ENRIC, European Energy, Green Technology Bank, Orsted, Proman, and WasteFuel with the intent of sourcing at least 730,000 tons per year by the end of 2025. A seventh partnership with Debo was added in August.