Billionaire Maersk Family Establishes Green Methanol Firm to Revolutionize Shipping

The affluent family behind the global giant A.P. Moller-Maersk A/S has embarked on a new venture aimed at mitigating emissions in the shipping industry, renowned as one of the world's most substantial contributors to pollution. This new company, christened C2X, is set to pioneer the production of green methanol, with the goal of addressing the industry's environmental impact.

In a recent statement from A.P. Moller Holding A/S (APMH), the family's fund, it was revealed that C2X will establish and operate "large-scale" methanol production facilities, with a projected annual capacity exceeding three million tons of green methanol by 2030. This ambitious endeavor represents a significant boost to an industry currently grappling with a severe shortage of carbon-neutral fuels. To put it in perspective, global green methanol production capacity currently hovers at approximately 153,000 tons, including demonstration plants that may not be commercially viable and those involved in synthetic methanol production. APMH envisions a tripling of global methanol demand to around 300 million tons per year by 2050, with the majority of it being the eco-friendly variant.

Maersk, renowned for its fleet of approximately 700 container ships, bears the responsibility for approximately 0.1% of all human-generated CO₂ emissions. The Copenhagen-based conglomerate has singled out green methanol as the leading technology to help it achieve its ambitious goal of achieving carbon neutrality by 2040.

C2X is slated to supply both the shipping industry and chemical companies. The primary stakeholder in the enterprise will be APMH, boasting assets valued at around $110 billion and led by Robert Maersk Uggla, the great-grandson of the shipping firm's founder. Maersk itself will hold a 20% stake in C2X, though specific financial details were not disclosed. The reins of this new venture will be entrusted to Brian Davis, a former oil industry expert from Shell Plc, who will serve as its leader, while the role of Chief Financial Officer will be assumed by Alastair Maxwell, previously associated with Morgan Stanley and Goldman Sachs Group Inc. C2X will commence operations with a staff of 60 employees and is actively pursuing projects located near the Suez Canal in Egypt and in Spain.

Maersk has openly acknowledged that the most significant obstacle to its transition towards sustainability is the scarcity of green fuel—a classic "chicken-and-egg" conundrum. Few energy companies produce green methanol due to its limited current demand, while ship owners hesitate to invest in green vessels because the market for green fuels remains relatively small.

Nevertheless, there are indications that green methanol is beginning to gain traction. This year has witnessed a surge in orders for ships capable of running on green methanol, with over three times the number of vessels choosing this fuel over liquefied natural gas, which offers less emissions reduction.