Hapag-Lloyd buys bio, e-methanol from China's Goldwind

Market: Biofuels, E-fuels, Hydrogen
29/11/24

Germany-based containership owner Hapag-Lloyd has struck a long-term deal to buy 250,000 t/yr of blended biomethanol and e-methanol from Chinese wind turbine maker and project developer Goldwind.

The deal lasts for more than 10 years and is legally binding, Hapag-Lloyd told Argus.

Goldwind will supply Hapag-Lloyd with a smaller volume initially in 2026 and ramp up to 250,000 t/yr in late 2027. Hapag-Lloyd expects the initial volumes to largely fulfil demand from the five dual-fuel methanol ships it will operate from 2026, it said.

Goldwind earlier this year started building a 500,000 t/yr plant in Hinggan League, northeast China.

The so-called "hybrid" plants will make biomethanol and e-methanol, and Goldwind plans to add a second 500,000 t/yr plant in 2027, the shipowner said. Hapag-Lloyd's deal is for volume from the second plant, it added.

The ratio of e-methanol in the deal is 30pc but could be raised to 50pc in the plant's lifetime, Hapag-Lloyd said. The fuel ensures greenhouse gas (GHG) emissions reductions of at least 70pc to comply with current sustainability certification requirements, Hapag-Lloyd said.

This is likely to refer to the FuelEU Maritime definition of low-carbon fuels as cutting GHG emissions by 70pc compared with fossil benchmarks.

Goldwind previously struck a deal to supply 500,000 t/yr of the sustainable methanol mix to Danish shipping and logistics firm Maersk from 2026.

While methanol appears to be gaining momentum, shipowners are pursuing a range of fuels for future fleets. Hapag-Lloyd last month ordered 24 dual-fuelled LNG containerships for a combined $4bn.

By Aidan Lea

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