Ørsted launches Power-to-X facility to fuel Maersk’s e-methanol vessels

Global logistics company AP Moller-Maersk and renewable energy firm Ørsted have partnered on a new Power-to-X facility in the US to produce zero emission maritime fuels in an effort to decarbonise shipping.

Ørsted will develop a 675MW Power-to-X facility on the US Gulf Coast, that will produce approximately 300,000 tonnes of e-methanol per year. This will power Maersk’s newly ordered fleet of 12 methanol-powered vessels.

According to Ørsted, the biogenic carbon needed to produce e-methanol will be extracted through carbon capture and the 1.2GW of power needed for the facility will come from new onshore wind and solar PV farms.

The project is due to be commissioned in the second half of 2025.

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Maersk aims to source at least 730,000 tonnes of e-methanol per year by end of 2025. To this end, the company has entered into strategic partnerships with six companies. These companies include CIMC ENRIC, a subsidiary of CIMC (China), European Energy (Denmark), Green Technology Bank (China), Proman (Switzerland), WasteFuel (US), as well as Ørsted (Denmark).

Henriette Hallberg Thygesen, CEO of Fleet & Strategic Brands at AP Moller-Maersk said: “To transition towards decarbonisation, 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.”

Martin Neubert, Deputy CEO and Chief Commercial Officer at Ørsted, said: “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… 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.”

Neil O’Donovan, CEO of Ørsted Onshore, added: “The US 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 US going forward.”

The Power-to-X project in the US Gulf Coast region is the second green fuels collaboration between Ørsted and Maersk but marks Ørsted’s entry into the US Power-to-X market.