The container ship Maersk Murcia is anchored in the port of Gothenburg, Sweden, on August 24, 2020.
JONATHAN NACKSTRAND | AFP | Getty Images
Maritime giant Maersk said on Wednesday that it will launch a carbon-neutral ship by 2023, seven years before the program, as it seeks to reduce its environmental footprint and reach a target of net carbon dioxide emissions ( CO2) by 2050.
According to the Danish company, the world’s largest container shipping company, the ship will be powered by either carbon-neutral e-methanol or sustainable bio-methanol, although it will still be able to operate on very low standard sulfur fuel oil ( VLSFO) if necessary.
In simple terms, “carbon neutral” means that CO2 emissions are offset by an equal amount of CO2 emissions. If something is negative for carbon, it means that more CO2 is released from the atmosphere than emitted.
In the future, all new ships owned by Maersk will be able to run on carbon-neutral fuels, with the company saying it will “install dual-fuel engines on future new buildings”. The word “new construction” refers to a ship that has been recently built or is under construction.
The environmental footprint of transport is significant. According to the International Energy Agency, in 2019 international transport – a crucial cogwheel in the world economy – was responsible for about 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 accelerating the development of the methanol-powered ship.
“We learned a lot as a company about the opportunities that exist, 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.”
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 a lot of projects on the board, but not too many willing,” he said. “With this, we are trying to make a statement that we want to put the ball in the game, we want to start producing these fuels and actually put them on the market, so that the market can expand.”
Maersk, he explained, had been in dialogue with several partners on the issue, although he was not yet ready to name who he was dealing with.
“But for sure … this will be the big challenge: to get enough supplies of neutral fuels properly,” he added.
Christiansen further stated that Maersk customers will “have access to a product that is a concept that can be scaled accordingly”.
“It also means they will have the impression of how much extra cost this will add,” he said.
Noting that although the company was not yet sure about the prices, Christiansen added: “What we do know is that when we look at final consumer products, so a pair of sneakers or a flat screen TV, then … the impact of those products would be measured in cents rather than dollars. “
“So, from that perspective, it would seem like something that can actually be absorbed and, hopefully, amplify the decarbonization of our customers’ supply chains.”