After four years, Denmark's Maersk has officially established its first large-scale methanol dual fuel container ship, the Green Fleet. However, as a barometer of energy transformation in the global shipping industry, Maersk has encountered dual challenges of technological adaptation and fuel supply in the practical application of green methanol.
The 12th ship has been delivered! Maersk Green Methanol Container Fleet Completed Construction
Recently, Maersk's latest 16,000 TEU methanol dual fuel container ship Axel Maersk was officially named and delivered at HD Hyundai Heavy Industries Ulsan Shipyard in South Korea, marking the successful completion of the world's first large-scale methanol dual fuel container ship series construction project. So far, Maersk's fleet currently operates a total of 13 methanol dual fuel vessels, including one 2100TEU feeder vessel and 12 16000TEU large vessels.
Maersk said, "With the delivery of the Axel Maersk, we have completed the construction of the world's first series of large dual fuel methanol powered container ships. This iconic fleet reflects that when ambition and action are combined, the future of net zero emissions is not out of reach. From the Laura Maersk to the Axel Maersk, each dual fuel ship represents a firm step towards a net zero emissions future."
The Axel Maersk has a total length of 336.78 meters, a width of 53.5 meters, a draft of 18 meters, a carrying capacity of 189508 tons, flies the Danish flag, and is classified by the American Bureau of Shipping. At present, this ship has started its maiden voyage and is operating on the east-west main route connecting Asian and European customers.
It is reported that Maersk signed the world's first batch of methanol dual fuel container ship orders with South Korean HD Hyundai Group in February 2021, including one 2100 TEU feeder ship and 12 16000 TEU class ultra large container ships. Among them, the 2100TEU regional ship Laura Maersk will be delivered in 2023 and named by Ursula Vondrein, President of the European Commission, symbolizing Maersk's leading position in the process of decarbonization in the shipping industry.
In January 2024, the naming ceremony for Maersk's first 16000 TEU methanol dual fuel ship, Ane Maersk, built by HD Hyundai Heavy Industries, was held. In the following year and a half, these 12 16000 TEU methanol dual fuel ships were named and delivered one after another. This type of ship adopts the industry's first innovative design, placing the bridge and accommodation area at the forefront of the ship to ensure fuel efficiency. The ship is equipped with dual fuel engines provided by MAN Energy Soltuions, which can operate on both methanol and traditional marine fuels. The auxiliary engines also use methanol dual fuel.
In addition to the 13 ships mentioned above, Maersk currently has 12 methanol dual fuel ships under construction by Chinese and Korean shipbuilding companies, including 6 17000 TEU methanol dual fuel ships built by HD Hyundai Heavy Industries, which will also be delivered within this year; In addition, there are six 9000TEU methanol dual fuel ships from Yangtze River Shipbuilding Industry, which are planned to be delivered gradually from 2026 to 2027.
According to Maersk's sustainable development goals, the company will achieve carbon neutrality by 2040, at least 10 years ahead of the vast majority of its peers in the shipping industry. At the same time, Maersk has set more recent goals, requiring a 50% reduction in greenhouse gas emissions intensity from its ocean going fleet and a 70% reduction in absolute emissions from its fully controlled terminals by 2030.
To achieve this goal, Maersk has promised that its newly built methanol dual fuel ships will operate entirely using carbon neutral electric methanol or sustainable bio methanol. This requires a significant increase in the large-scale production of carbon neutral methanol. Maersk has signed agreements with multiple clean energy companies to purchase a large amount of green methanol fuel and invest in related production projects.
Failed to achieve the goal? Maersk operates multiple new ships using grey methanol
Nevertheless, Maersk executives recently confirmed that due to the persistent initial running-in problems of the methanol dual-fuel engines installed on its newly-built container ships, several new vessels had to use grey methanol or fossil methanol as fuel. This reality clearly deviates from Maersk's original plan.
According to foreign media reports, Ola Straby, Senior Chief Ship Designer at Maersk, revealed that although the fuel and refueling systems of these new ships are running well, there are still initial issues with engine material selection and short-term load reliability of some parts. Therefore, the company currently operates four ships using grey methanol or fossil methanol. Compared to LNG fuel, using grey methanol will result in higher carbon emissions.
"These engines can work, but the maintenance frequency is too high. We need to solve this problem, "he said. The company hopes to accumulate clean operating condition data of methanol fuel through actual operation.
He added that Maersk's first 2100TEU methanol dual fuel feeder ship, the Laura Maersk, has been operating with green methanol and biodiesel since its delivery. The process of adding methanol fuel is relatively simple. Maersk has completed about 30 fuel injection operations so far. Although Maersk was not the first company to enter the methanol fuel industry, it has now surpassed other competitors in terms of the diversity of injection methods.
Straby pointed out that Maersk's refueling methods include ship to ship refueling, dock refueling, dedicated supply ships deployed in Shanghai, and methanol fuel provided by small chemical transport ships. The biggest experience Maersk has gained from this is that standardization is crucial, and methanol fuel injection has not yet been standardized.
He gave an example that the company initially set up the refueling point at the stern, but due to the lack of specialized methanol fuel refueling ships, the ships currently providing fuel can dock on the side of the ship and then be transported to the stern.
He also stated that there is an unexpected lack of data and literature on the behavior of methanol fuel at present. However, he emphasized that Maersk is promoting standardization and technological research to gather knowledge, build a unified technological system, and provide assistance to the entire industry.
At the same time, the supply of green methanol fuel is also a major challenge, and currently available green methanol resources are very limited. Straby admitted that the company was aware from the beginning that there would not be enough green methanol available when the new ship was delivered.
It is understood that compared to traditional fuels, methanol (green methanol) can reduce 60% to 95% of carbon dioxide emissions from container ships. However, the cost of green methanol fuel is high, and its production cost is at least twice that of traditional methanol produced from fossil fuels. Moreover, the current production of green methanol is less than 1% of methanol production, and most green methanol projects are located in China, Northern Europe, and North America, far from major fuel injection centers such as Singapore and the United Arab Emirates, which means additional emissions and transportation costs will be incurred.
In addition, in order for methanol to become green methanol, it must pass certification, and currently the most widely accepted is the ISCC certification (International Sustainability and Carbon Certification) led by the European Union. ISCC requires certification for each stage and subject of the production process, including the supply of biomass raw materials, as well as the production, transportation, storage, and refueling of green methanol, to ensure a carbon reduction target of 65%. The certification process for the entire lifecycle is lengthy and requires strict and tedious requirements. These factors are all issues that need to be addressed in the development process of methanol fuel for ships.
Transform to gas? Maersk continues to increase investment in LNG fuel and finalize orders for 54 new ships
It is understood that Maersk is currently the second largest consolidator in the world. The latest data from Alphaliner shows that as of now, Maersk's fleet has a total capacity of 736 vessels with 4.57 million TEUs, including 337 owned vessels and 399 leased vessels, with a market share of approximately 14.2%. In addition, Maersk has 50 new ships under construction, totaling 699000 TEUs, accounting for 15.3% of the existing fleet.
For a long time, Maersk has been regarded as the barometer of the shipping industry, and Maersk's choice of alternative fuels has had a profound impact on the market. Three years ago, Maersk ordered the world's first methanol dual fuel container ships, ushering in the "methanol era" of energy transformation in the shipping industry. Methanol fuel has increasingly become one of the preferred alternative fuels for shipping companies when ordering new ships.
However, in mid-2024, Maersk publicly announced that it would invest in LNG dual fuel ships, despite the company's repeated doubts about LNG fuel in the past. Last year, Maersk itself, as the shipowner, ordered up to 20 LNG dual fuel container ships with a total capacity of approximately 300000 TEUs. Among them, Yangtze River Shipbuilding received orders for 2 9000TEU and 6 17000TEU container ships, while New Era Shipbuilding and South Korea's Hanwha Marine received orders for 6 15000TEU ships each. These new ships will be delivered gradually between 2028 and 2030.
In addition to the 20 self-owned vessel orders mentioned above, Clarkson's data shows that Maersk also collaborated with multiple shipowners to order 34 dual fuel container ships last year, with a total capacity of approximately 460000 TEUs. This includes four 9000TEU methanol dual fuel ships, eight 9000TEU dual fuel LNG powered ships, and ten 17000TEU dual fuel LNG powered ships ordered by Seaspan from Yangtze River Shipbuilding, as well as five 16800TEU dual fuel LNG powered ships ordered by Seaspan and Norwegian SFL Corporation from New Era Shipbuilding. In addition, Japanese shipowner Lepta Shipping has ordered a 9000TEU dual fuel LNG powered ship from Yangtze River Shipbuilding.
At the beginning of this year, it was reported that Maersk had already inquired with at least three major shipyards in China, planning to order up to 12 15000 TEU dual fuel LNG powered container ships, including state-owned and private shipyards. Meanwhile, Maersk is also in negotiations with Seaspan, the world's largest independent container ship owner, for the construction of a new LNG dual fuel container ship.
With Maersk's shift, LNG dual fuel container ship orders have rapidly increased since the second half of last year, and LNG has replaced methanol as the preferred alternative fuel for ship owners when booking ships. According to statistics from DNV's Alternative Fuel Insights (AFI) platform, 69% of container ship orders in 2024 are ships that can use alternative fuels, with LNG being the preferred fuel for this type of ship, accounting for as much as 67%.
Entering 2025, the investment boom of shipping giants in LNG dual fuel ships has not subsided. France's CMA-CGM ordered 12 18000 TEU dual fuel LNG powered container ships from HD Korea Shipbuilding in January, and recently plans to order 8+4 LNG powered 18000 TEU ships from Jiangnan Shipbuilding.
At the beginning of this year, Evergreen Marine announced the order of 11 24000TEU dual fuel LNG powered container ships, of which 6 were built by South Korea's Hanwha Marine (formerly Daewoo Shipbuilding) and 5 were built by Guangzhou Shipbuilding International, becoming another shipping giant that has shifted from methanol to LNG fuel. Mediterranean Shipping has once again increased its LNG dual fuel ship orders, adding a total of 10 22000TEU ships to Changhong International and Hengli Heavy Industries.
Recently, Japan's Ocean Network Shipping (ONE) has also switched from methanol to LNG fuel and signed a contract with South Korea's HD Hyundai Heavy Industries to build 8+4 16000 TEU dual fuel LNG powered container ships. This is ONE's first time ordering LNG dual fuel container ships.
In contrast, this year's methanol dual fuel container ship orders only include a total of 14 18500 TEU ships ordered by Dongfang Overseas, a subsidiary of COSCO, in Nantong COSCO HKI and Dalian COSCO HKI in April, as well as 2 8700 TEU ships ordered by Wanhai Shipping in Taiwan in January.
Unlike the emerging methanol fuel, LNG fuel has undergone years of development and currently has a relatively mature supply chain. Moreover, LNG fuel can significantly reduce carbon dioxide emissions. Compared with traditional fuels, LNG fuel can reduce carbon dioxide emissions by about 20%, while bio LNG can reduce emissions by up to about 92%, depending on the source of bio LNG.