Maersk and Carbon Sink Announced a Strategic Partnership That Will Enable Production of Green Fuels for Marine Transport

A.P. Moller – Maersk, who is committed to achieving 100% zero-carbon supply chains by 2050, entered a green methanol partnership with the U.S.-based Carbon Sink LLC, who specializes in developing other types of zero-carbon solutions including renewable diesel and solar fuels. This is the 8th such agreement that Maersk has made as part of their commitment to annual decarbonization by 2035.

Parties have signed a Letter of Intent ahead of the development of green methanol production facilities by Carbon Sink in the United States. The first facility will be co-located with the Red River Energy ethanol plant in Rosholt, South Dakota and will have a production capacity of 100,000 tons per year.

Commercial production at this plant is anticipated to start in 2027 and Maersk intends to purchase the full production volume. At the same time, they are also interested in purchasing output from future plants that they may build elsewhere.

It’s essential for companies like A.P. Moller – Maersk to lead the charge to find more sustainable fuels in order to achieve their wider goals and meet their 2040 net-zero target. For example, APM was committed to being climate neutral by 2030, and that’s why they found success with Carbon Sink. 

From farm waste to manufacturing, Carbon Sink uses a commercially available technology to produce green methanol. We begin by combining green hydrogen from electrolysis of water with biogenic CO2 and then convert the CO2 into methanol and sell it back as cleanly as possible. The CO2 will come from Red River Energy’s ethanol plant and is then reduced, recycled, and sold back in another form.

Maersk is excited to work with Carbon Sink in support of their mission to decarbonize the shipping sector. Working together, we’ll continue to help them achieve their ambitious goals to meet the demand of their growing dual-fuel ship fleet. With our multi-project strategy, you can count on a steady supply of green methanol that will help them meet any future demand.

Carbon Sink is thrilled to join seven other strategic partners on the green fuel journey. As they begin the process of securing 25% of the required carbon-neutral fuels for the 19 container vessels Maersk Group has ordered, their goal is to support efforts and help reach 730,000 tons per year by the end of 2025.