Although there have been many visions for large-scale e-Methanol production, the project in Kassø is the first to take steps forward in terms of significant scale. It comes at an important time, when, alongside the environmental challenges we face, the war in Ukraine and other geopolitical pressures, supply chain issues, and the need to secure energy supplies are all highlighting weaknesses in the resilience of some countries.
For the shipping industry, the International Maritime Organization (IMO) has already committed the sector to halve greenhouse gas (GHG) emissions by 2050 (based on 2008 levels) to meet Paris Agreement targets – Maersk is even aiming for net zero by 2040. Sustainable fuels are a critical aspect of meeting these targets and Maersk is a first mover in the adoption of technology as the Kassø plant will provide fuel for its first e-Methanol driven container vessel. By taking this essential step with the offtake agreement, Maersk has enabled the Kassø project to go ahead. Although initial prices for the e-Methanol will be higher, this is a relatively small percentage of overall fuel consumption. Going forward, however, Maersk’s commitment to the Kassø plant will enable further investments to drive costs down and increase production efficiency.
The Kassø project has shown that, with the right ingredients, it is possible to realize larger projects and start a new e-Methanol economy. It opens a door to the potential this fuel has to offer, especially in hard-to-abate industries such as shipping. We hope the success of this project will lead to further investments from others and the generation of a “critical mass” that will drive down costs and make e-Methanol a fully viable fuel for the future.
