MAERSK has added another methanol supplier by signing a long-term bio-methanol sourcing agreement with China’s LONGi Green Energy Technology, with deliveries expected to start in 2026.

“Bio- and e-methanol continue to be the most promising alternative shipping fuels to scale up this decade, and the agreement with LONGi serves as a testament to this,” said Maersk chief operating officer Rabab Raafat Boulos.

Because of delays in green methanol production and uncertainties regarding shipping carbon prices, Maersk has been tipping towards other fuels, such as LNG, to diversify its options.

Chief executive Vincent Clerc said on the company’s second-quarter investor call in August that it needed to hedge some of its technology bets and avoid making one-way bets.

The Danish shipping giant did not specify the supply volume from LONGi but highlighted that with the new supplier, “Maersk is making progress in securing enough methanol for its owned dual-fuel methanol fleet, of which seven vessels are already in operation”.

“Maersk’s combined methanol offtake agreements now meet more than 50% of the dual-fuel methanol fleet demand in 2027.”

Last November, Maersk signed a methanol supply agreement with Chinese energy producer Goldwind for up to 500,000 tonnes per year comprising green- and bio-methanol. Initial deliveries are expected in 2026.

LONGi, a Xi’an-based photovoltaic manufacturer and developer of solar power projects, will produce bio-methanol that meets Maersk’s methanol sustainability requirements, including at least 65% reductions in greenhouse gas emissions on a lifecycle basis compared to fossil fuels.

“This agreement underscores the continued momentum for methanol projects pursued by ambitious developers across markets. China continues to play a pioneering role,” said Maersk head of energy markets Emma Mazhari.

The production of bio-methanol from agricultural residues will take place at a facility located in Xu Chang city, in China’s Henan province.

Construction of the facility started in April, with an annual production goal of 120,000 tonnes, according to local media reports.

In addition to the initial output anticipated in 2026, Maersk said that full production is expected to come onstream by the end of 2030 and the long-term supply deal will last into the following decade.

China is the world’s largest producer of grey methanol and is actively working towards leading the way in green energy production.

As the first container line to embrace methanol as an alternative fuel, Maersk is sourcing the alternative fuel on a global scale. Mazhari noted that the company was “engaging closely with several promising projects” in the US.