A.P. Moller – Maersk, an integrated container logistics company, and Ørsted have signed a letter of intent (LOI) about partnering on a new Power-to-X facility.
On the U.S. Gulf Coast, Ørsted will develop a 675 MW Power-to-X facility that will produce approximately 300,000 tons of e-methanol per year, which Maersk will offtake for its newly ordered fleet of 12 methanol-powered vessels.
The facility will be powered by approximately 1.2 GW of renewable energy from new onshore wind and solar farms. The biogenic carbon needed to produce e-methanol will be extracted through carbon capture at one or more large point sources.
The project is targeted to be commissioned in the second half of 2025. Final investment decision could be made in late 2023.
“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,” says Martin Neubert, deputy CEO and chief commercial officer at Ørsted. “Partnerships with large offtakers of green fuels, like Maersk, is an important part of Ørsted’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 U.S., and we look forward to help accelerating the U.S. Power-to-X market while creating local jobs and economic activity, just as we’ve done in the growing offshore wind industry in the U.S.”
“To transition towards decarbonization, we need a significant and timely acceleration in the production of green fuels,” states Henriette Hallberg Thygesen, CEO of fleet and strategic brands for A.P. Moller – Maersk. “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.”
The Power-to-X project in the US Gulf Coast region is the second green fuels collaboration between Ørsted and Maersk after the potentially 1,300 MW Green Fuels for Denmark project in Copenhagen, which the two companies are partnering on with other large offtakers.
“The U.S. Gulf States have an abundance of cheap renewable energy resources, both solar and wind, making the region a natural location for large-scale production of green fuels, which we expect there will be a very large demand for in the U.S. going forward,” adds Neil O’Donovan, CEO of Ørsted Onshore. “The Power-to-X project with Maersk will expectedly be powered by approx. 1.2 GW of new onshore wind and solar PV, which in itself represent a significant investment in the region, while also helping Ørsted reach its target of 17.5 GW of installed onshore capacity in 2030.”