On a sunny day in September, a large crowd gathered at the harbor in Copenhagen to welcome the official arrival of Laura Maersk. Unlike the typical European dignitary, Laura Maersk was a massive containership standing tall above the crowd, representing the shipping industry’s efforts to address its contribution to climate change. Commissioned by Danish shipping giant Maersk, the ship featured a special engine capable of burning both traditional fuel and a greener alternative made from methanol. By using green methanol, this single ship would reduce greenhouse gas emissions by 100 tons per day, equivalent to the emissions of 8,000 cars.
Global shipping plays a significant role in climate change, responsible for nearly 3 percent of global greenhouse gas emissions, comparable to the aviation industry. Finding solutions to limit these emissions has proven challenging. While some ships are utilizing wind power, a more constant and powerful energy source is needed for long journeys. The port of call for ships cannot frequently plug into batteries or the electrical grid, hence a portable and clean fuel is required.
Laura Maersk’s green methanol engine is a significant step forward in the shipping industry’s quest to tackle climate change. However, it also highlights how far the industry still has to go. Currently, only around 125 methanol-burning ships are on order, a tiny fraction of the more than 50,000 cargo ships worldwide that transport 90 percent of traded goods. Additionally, the market for green methanol is still developing, and availability and pricing may not support the vast fleet of cargo ships anytime soon.
While shipping is relatively efficient compared to other modes of transport, its use of fossil fuels contributes to a warmer and dirtier planet. Ships emit pollutants that harm the health of those living near ports. During the Covid-19 pandemic, pollution levels surged due to supply chain disruptions causing ships to accumulate outside ports. Addressing emissions is essential, and some shipping companies have explored liquefied natural gas as an alternative, but it is still a fossil fuel.
Companies like Maersk have identified greener fuels such as methanol, ammonia, and hydrogen as the most promising options. Maersk aims to achieve zero carbon emissions by 2040 and is investing billions into cleaner fuels. However, transitioning to methanol, even the most commercially viable green fuel presently, comes with significant challenges. Retrofitting existing ships or building new ones with the necessary infrastructure is required. Likewise, the industry needs green methanol production on a large scale, which depends on renewable energy and reliable sources of carbon capture.
The production of green methanol is still in its early stages, with little being produced worldwide. Maersk has committed to using sustainably produced methanol, but if others resort to coal or oil-based methanol, the environmental benefits will be lost. The technology to build green methanol projects needs further development, and long-term contracts with buyers are necessary to secure financing. Companies like Maersk have secured contracts with fuel providers and clients willing to pay more for greener transportation, but many others are still hesitant.
Regulation plays a crucial role in fostering a green transition in the shipping sector. The European Union has introduced rules encouraging decarbonization, while the United States is investing in green fuel production and modernizing ports. However, global rules from the International Maritime Organization are needed to regulate emissions effectively. While the organization has been criticized for its slow progress, it recently adopted a more ambitious target to eliminate greenhouse gas emissions from shipping “by or around” 2050. The aim is to agree on a binding regulation by the end of 2025, with implementation in 2027. However, countries are still debating the type of regulation to adopt.
Maersk acknowledges that green methanol may not be the ultimate solution due to finite sources. Experts suggest it may not be enough to power the entire global shipping fleet. Nonetheless, it represents a significant step forward in the industry’s journey towards sustainability.