Maersk cuts carbon bill with $1.4 billion investment in methanol fuelled vessels

Quantum Commodity Intelligence - Shipping giant Maersk will invest $1.4 billion to purchase eight large container vessels that will be able to run on methanol, although admits finding enough of the fuel will be "challenging, it announced Tuesday.

The dual-fuel vessels, which can also run on 0.5% marine fuel, will cost between 10% to 15% more than conventional vessels of the same size but will generate savings of around 1 million mt of carbon dioxide emissions a year as they replace some of Maersk's existing fleet.

The extra building cost range falls between $140-210 million on a spend of $1.4 billion, but the money would be recovered over a period of time by reducing carbon penalty costs.

If shipping is included in the European emissions trading (ETS) scheme, Maersk will have to buy carbon allowances if its fleet exceeds an annual cap level for carbon dioxide emissions.

Carbon allowances for 2021 are currently trading around $56.50/mt ($66.29/mt).

Maersk would save $66.29 million a year at current prices by running vessels that would cut its regulated carbon dioxide emission pollution by 1 million mt.

Shipping operators would be required to obtain EU ETS allowances for a portion of their emissions for intra-EU voyages starting in 2023, but they would ultimately need to obtain them for all emissions after a four-year phase-in period, under a proposal from the European Commission.

In 2020, Maersk ships emitted about 33.9 million mt of carbon dioxide from its fleet of around 700 vessels, according to its sustainability report.

The first of the vessels, which will have the capacity to carry 16,000 containers, will be ready in the first quarter of 2024.

Maersk has an option to order an additional four dual-fuel vessels in 2025.