by Lloyd's List

8 October 2024 (Lloyd's List) - MAERSK’s head of energy transition and energy supply has publicly gone into detail as to why he takes the view that a portfolio approach to future fuels is the key to future planning, but he makes clear that the company still thinks methanol is the best alternative fuel for cutting shipping emissions.

The comments by Morten Bo Christiansen follow Maersk’s announcement in August that the world’s second-largest operator of containerships had placed its first orders for LNG dual-fuel powered boxships, a propulsion system that the company had previously paid no heed to.

Maersk, which has an existing fleet capacity of 4.3m teu, disclosed that it placed orders this year for up to 60 containerships with a combined capacity of 800,000 teu. The newbuildings are expected to replace conventional fuel vessels constructed in the 2000s.  

The majority of capacity, over 60%, is expected to be provided by long-term chartered tonnage from non-operating owners, including Seaspan and Eastern Pacific Shipping, with the remainder for Maersk’s own account.

Christiansen said that all vessels will be of either methanol dual-fuel or LNG dual-fuel specification, although it remains undecided how many vessels will be of each fuel type.

For existing, relatively modern, vessels in Maersk’s vessel fleet, Christiansen noted that a number of options have been, or will be, utilised to ensure compliance for future emissions regulations.

“When we look towards 2030 and the reduction of emissions there are a number of efficiency measures. They include retrofits for alternative fuels — a dual fuel ship is better than a single fuel vessel,” said Christiansen.

Maersk is due to take delivery of the first ever containership conversion of a conventional fuel ship to a dual-fuel methanol vessel in the near future.

The 15,226 teu Maersk Halifax (IMO: 9784271) arrived at Zhoushan Xinya Shipyard in China in July to have its main engine converted, in a joint project with its engine designer MAN B&W.

The 2017-built ship is currently undergoing sea trials and is expected to re-enter service by the end of 2024.  

The project is part of Maersk’s 2040 net zero emissions goal. Maersk Halifax’s 10 sister vessels are also planned to be converted by 2027 during their next drydockings.

Christiansen said that more existing ships could be converted for dual-fuel operations, including chartered tonnage.   

“North of 25% of our fleet will be dual-fuel enabled by 2030. This will be provided by new tonnage and retrofits. Dual fuel gives us fuel optionality.”

Maersk has five dual-fuel methanol containerships now in service, comprising four “Equinox” class 16,000 teu vessels and the first ever methanol containership in service, the 2,100 teu Laura Maersk (IMO: 9944546).

As a feeder ship operating on short-haul trades in northern Europe, Laura Maersk is able to benefit from a consistent supply of green methanol from Denmark.  

“Laura Maersk has been operating fully on green methanol since its maiden voyage in 2023. For the Equinox-class it has been more ad-hoc in operating on methanol as supply is tight at acceptable prices — by 2026 we expect significant volumes of price competitive green methanol.” 

While the decision to order dual-fuel LNG newbuildings marks a change in Maersk’s strategy to commit to chiefly methanol, Christiansen said that the company always knew that the future was going to be a complex multi-fuel one due to fuel supply. He believes that one day, ammonia will be become a good candidate.

“Dual-fuel LNG ships are versatile as they can burn fossil LNG and bio-methane. We are not endorsing fossil LNG as a solution, but we expect our LNG ships to burn a mix of bio-methane, fossil LNG and very low sulphur fuel oil.” 

Christian says Maersk’s inclusion of dual-fuel LNG ships is not a pivot away from methanol, but represents a portfolio move to a wider mix of fuels.

“In future, ammonia will be in the mix. We can optimise the fuel mix and abatement costs, but I still think methanol looks the best candidate. It will play the big role,” noted Christian.

He believes that should the outcome of the International Maritime Organization’s revised greenhouse gas reduction framework prove effective then retrofits of conventional fuel ships will grow significantly.