The cargo ship Maersk Murcia is moored in the port of Gothenburg, Sweden, on 24 August 2020.
JONATHAN NACKSTRAND | AFP | Getty Images
Ship giant Maersk said on Wednesday that it would launch a carbon-neutral vessel by 2023, which is seven years ahead of schedule, as it seeks to reduce its environmental footprint and release a carbon dioxide (CO2) target by 2050.
According to the Danish firm, the largest shipping company in the world, the vessel will be powered by carbon-neutral e-methanol or sustainable biomethanol, although it can still operate on standard very low-sulfur (VLSFO) fuel oil if necessary.
In simple terms, ‘carbon neutral’ means that CO2 emissions are compensated by an equal amount of CO2 removal. If something is carbon negative, it means that more CO2 is being removed from the atmosphere than it is emitting.
Looking ahead, all new Maersk-owned vessels will be able to run on carbon-neutral fuels, with the company saying it will ‘install dual-fuel engines on future new buildings’. The word ‘new building’ refers to a ship that was recently built or is under construction.
The environmental footprint of shipping is significant. According to the International Energy Agency, international shipping – a major gear in the world economy – was responsible for around 2% of ‘global energy-related CO2 emissions’ in 2019.
Maersk’s head of decarbonisation explained CNBC’s “Street Signs Europe” on Wednesday morning how several things “went in the right direction” to speed up the development of the vessel with methanol.
“As a company, we have learned a lot from the opportunities that technology has developed,” said Morten Bo Christiansen.
“And last but not least, our customers clearly expect it from us. They need to help us carbonize their supply chains.”
Asked how his company would obtain enough carbon-neutral fuel to meet his future needs, Christiansen said it was a “chicken and egg situation”.
“There are a lot of projects on the drawing board, but not many willing participants,” he said. “With this we are actually trying to make a statement that we want to make this ball spin, we want to start producing these fuels and actually put them in the market so that the market can expand.”
Maersk, he explains, was in talks with several partners on this issue, although it was not yet ready to name who it was dealing with.
“But definitely … it will be the big challenge: to get sufficient stock of carbon neutral fuel,” he added.
Christiansen further said that Maersk’s customers will ‘gain access to a product that is a concept that is properly scalable’.
“It also means they will get a sense of how much extra cost it will add,” he said.
While the company was not yet sure about price points, Christiansen added: “What we do know is that if we look at the end consumer products, so a pair of sneakers or a flat screen TV, then … the impact on those products it would be measured in cents rather than dollars. ‘
“From that perspective, therefore, it wants to look like something that can be absorbed, and hopefully increase the carbon dioxide of our customers’ supply chains.”