The container ship Maersk Murcia is moored in the port of Gothenburg, Sweden on August 24, 2020.
JONATHAN NACKSTRAND | AFP | Getty Images
Shipping giant Maersk said on Wednesday that it would launch a carbon-neutral ship by 2023, seven years ahead of schedule, as it seeks to reduce its carbon footprint and meet a target of net zero carbon dioxide (CO2) emissions by 2050.
According to the Danish firm, the largest container shipping company in the world, the vessel will be powered by carbon neutral e-methanol or sustainable biomethanol, although it can still run on standard fuel oil with very low sulfur content (VLSFO) if required.
In simple terms, “CO2 neutral” means that CO2 emissions are offset by an equal amount of CO2 removal. If something is carbon negative, it means that more CO2 is being removed from the atmosphere than is being emitted.
Looking ahead, all of Maersk’s new ships will be able to use CO2 neutral fuels, with the company stating that it will “install dual fuel engines on future newbuilds”. The word “new construction” refers to a vessel that has been recently built or is under construction.
The ecological footprint of shipping is significant. According to the International Energy Agency, international shipping – a crucial part of the global economy – was responsible for about 2% of “global energy-related CO2 emissions” in 2019.
Speaking to CNBC’s “Street Signs Europe” on Wednesday morning, Maersk’s head of decarbonization explained how several things “had gone in the right direction” when it came to accelerating development of the methanol-powered vessel.
“As a company, we have learned a lot about the opportunities that are available, the technology has evolved,” said Morten Bo Christiansen.
“And, last but not least, our customers clearly expect this from us, they need us to support them in decarbonising their supply chains.”
When asked how his company would buy enough carbon neutral fuels to meet its future needs, Christiansen said it was a “chicken and egg situation”.
“There are many projects on the drawing board, but not many willing customers,” he said. “With this we really try to make a statement that we want to get this ball rolling, we want to start producing these fuels and actually bring them to the market so that the market can scale up.”
Maersk, he explained, was in talks with several partners about this issue, although it wasn’t ready to name who it was dealing with.
“But certainly… this is going to be the big challenge: to get enough supplies of carbon neutral fuels,” he added.
Christiansen went on to say that Maersk’s customers “would have access to a product that represents a concept that is highly scalable.”
“It also means they get a sense of the additional costs that this entails,” he said.
While the company was not yet sure about the price, Christiansen added, “What we do know is that if we look at the consumer’s end products, so a pair of sneakers or a flat screen TV, then … the impact on those products would be measured in cents rather than dollars. “
“So from that perspective, it looks like something that can really be absorbed, and hopefully scale up the decarbonisation of our customers’ supply chains.”