The container ship Maersk Murcia is docked in the port of Gothenburg, Sweden, on August 24, 2020.
JONATHAN NACKSTRAND | AFP | Getty Images
Maritime transport giant Maersk said on Wednesday it would launch a carbon neutral vessel by 2023, seven years ahead of schedule, as it tries to reduce its environmental footprint and reach a net carbon dioxide (CO2) emissions target by 2050.
According to the Danish company, the largest container transport company in the world, the vessel will be powered by carbon neutral e-methanol or sustainable bio-methanol, although it is still capable of operating with standard fuel oil with very low sulfur content (VLSFO) if necessary.
In simple terms, “carbon neutral” means that CO2 emissions are offset by an equal amount of CO2 removal. If something is negative carbon, it means that more CO2 is removed from the atmosphere than emitted.
Looking ahead, all new ships owned by Maersk will be able to operate on carbon neutral fuels, with the company declaring that it will “install dual-fuel engines in future new construction”. The word “new construction” refers to a ship that has recently been built or is under construction.
The environmental footprint of shipping is significant. According to the International Energy Agency, in 2019 international maritime transport – a crucial cog in the world economy – was responsible for approximately 2% of “global energy-related CO2 emissions”.
Speaking to CNBC’s “Street Signs Europe” on Wednesday morning, Maersk’s decarbonization chief explained how several things “went in the right direction” when it came to speeding up the development of the methanol-powered vessel.
“We learned a lot as a company about the opportunities that exist, the technology has developed,” said Morten Bo Christiansen.
“And last but not least, our customers are clearly expecting this from us, they need us to support them in decarbonizing their supply chains.”
Asked how his company would supply 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 buyers,” he said. “With that, we are really trying to make a statement that we want to get the ball rolling, we want to start producing these fuels and really putting them on the market so that the market can grow.”
Maersk, he explained, was in dialogue with several partners on this issue, although it was not yet ready to name who it was dealing with.
“But definitely … this will be the big challenge: obtaining sufficient supplies of fuels with an adequate neutral carbon content,” he added.
Christiansen went on to say that Maersk customers “would have access to a product that represents a concept that is properly scalable”.
“It also means that they will have an idea of how much extra cost this will add,” he said.
Noting that, although the company was not yet sure about the price points, Christiansen added: “What we do know is that when we look at the consumer products, then a pair of sneakers or a flat screen TV, then. … the impact on these products would be measured in cents instead of dollars. “
“So from that perspective, it would look like something that can really be absorbed and hopefully scale up the decarbonization of our customers’ supply chains.”