Alette Maersk: A Milestone in Green Shipping

By Lisa Baertlein

LOS ANGELES (Reuters) – The Alette Maersk was the first container vessel powered by low-carbon methanol fuel to cross the Pacific Ocean, marking a significant achievement in the shipping industry’s efforts to reduce its climate impact.

However, upon arriving at the Port of Los Angeles from China last week, the vessel found a lack of available green fuel in the U.S., necessitating a reliance on petroleum-based maritime fuel for its return journey.

At a day-long ship naming event on Tuesday, representatives from A.P. Moller-Maersk acknowledged that the shipping industry, responsible for approximately 3% of global greenhouse gases, requires more affordable green fuel to decarbonize at the necessary pace to combat climate change. “We’re on a clock,” stated Maersk CEO Vincent Clerc.

Maersk aims for net zero greenhouse gas emissions by 2040 and is a leader in the transition, currently operating five green methanol vessels with an additional 20 on order. However, these new vessels represent only a small portion of Maersk’s fleet of 700 owned and chartered ships. Importantly, the new vessels are dual-fueled, allowing them to operate on fossil fuels when green alternatives are not viable.

Green methanol can be produced from agricultural and food waste or through the conversion of carbon dioxide and hydrogen using renewable energy. Maersk representatives indicated that green methanol is currently two to three times more expensive than fossil fuels, with global production remaining minimal.

China’s Goldwind has promised to supply green methanol for Maersk’s upcoming large ocean-going vessels starting in 2026. However, potential supplier Orsted has abandoned plans for the largest e-methanol plant in Europe, stating that the green fuels market is developing slower than anticipated. E-methanol is produced using renewable-source CO2.

To further its green initiatives, Maersk plans to transition up to 60 additional ships to dual-fuel vessels that utilize renewable fuels, including liquefied bio-methane, a controversial substance due to its similarity to fossil methane.

Most of Maersk’s fleet can also operate on biodiesel, a traditional alternative that currently represents a small fraction of maritime fuel.

Major partners like Nike, Amazon, H&M, and Nestle are collaborating with Maersk on green fuel deliveries to bolster adoption, supporting investments in fuel production. “No one can do this alone,” emphasized Venkatesh Alagirisamy, chief supply chain officer at Nike, during Tuesday’s event, which called for regulatory actions.

Clerc mentioned that Maersk has approached the Biden administration to utilize the Inflation Reduction Act to incentivize green maritime fuel like it has for trucking and aviation. Maersk, along with competitors CMA CGM, Hapag-Lloyd, and MSC, has proposed a regulatory framework to the International Maritime Organization, which includes a suggested ‘green balance fee’ for carriers that retain lower-cost fossil fuel advantages.

“We need regulations and legislation to level the playing field,” stated Saba Takidar, Maersk’s senior commercial sustainability partner. “The whole fuel ecosystem must change.”