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Maersk enters agreements to boost green methanol output

  • Spanish Market: Biofuels, Hydrogen, Oil products, Petrochemicals
  • 10/03/22

Shipping line Maersk is forming partnerships with six companies to boost global capacity of green methanol and source at least 730,000 t/yr of the fuel by the end of 2025.

The six partners include Hong Kong-based CIMC ENRIC, Chinese Green Technology Bank (GTB), renewable energy company European Energy, Danish utility Orsted, methanol producer Proman and US-based methanol producer WasteFuel.

CIMC ENRIC will develop biomethanol projects for Maersk in China, with the first phase of the project scheduled to produce 50,000 t/yr of biomethanol from 2024 and the second phase expected to produce 200,000 t/yr with the start date to be determined. The fuel will be produced from agricultural residues and Maersk said it intends to offtake the full volume produced.

GTB will also facilitate the development of biomethanol projects in China, with the first planned to produce 50,000 t/yr from 2024 and the second planned to have a capacity to produce 300,000 t/yr at a start date to be determined.

WasteFuel is developing a biomethanol project in South America that will produce over 30,000 t/yr starting in 2024, with Maersk planning to offtake the full volume produced.

And Proman will supply Maersk with 100,000-150,000 t/yr of green methanol form its development facility in North America. The project will be built by Proman with a target start of operations in 2025, producing biomethanol from non-recyclable forestry residues and municipal solid waste.

European Energy will develop e-methanol projects in Latin America and the US and will have a capacity to produce up to 200,000-300,000 t/yr of the fuel starting in 2025-26. Orsted will also develop an e-methanol project in the US that will have capacity to produce 300,000 t/yr from 2025. Maersk intends to offtake the full volume produced by both companies. E-methanol is produced by combining renewable hydrogen from electrolysis with CO2 captured from industrial processes.

"With this production capacity, by the end of 2025 at the latest, Maersk will reach well beyond the green methanol needed for the first 12 green container vessels currently on order," the company said.

Maersk last year ordered the first methanol-fuelled container ship for delivery in mid-2023 and eight larger methanol-fuelled container ships for delivery in 2024.


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13/03/25

Japan’s MGC to fund US biomass-based plastic start-up

Japan’s MGC to fund US biomass-based plastic start-up

Tokyo, 13 March (Argus) — Japanese petrochemical producer Mitsubishi Gas Chemical (MGC) announced on 12 March that it decided to invest an undisclosed value in a US biomass-based plastics start-up ReSource Chemical. ReSource Chemical is developing technology to generate furandicarboxylic acid (FDCA), which is a raw monomer used to produce plastic polyethylenefuranoate (PEF), from wooden biomass-based lignocellulose. PEF is expected to replace polyethylene-terephthalate (PET) once a reasonable production method is established, as PEF is likely to have stronger heat-resilience and durability as well as lower gas-transmission rate and moisture permeability than PET. US venture capital funds Khosla Ventures, Fathom Fund and Chevron Technology Ventures and other individual investors also plan to finance ReSource Chemical with MGC. ReSource Chemical will raise $15mn in total. The funds will be used to build a pilot plant to manufacture FDCA. MGC aims to procure furoic acid, which is an intermediate product in ReSource Chemical's FDCA production process. MGC said furoic acid is not currently in use, but the firm will explore potential usage of this biomass-based feedstock in future. Japanese companies have attempted to develop biomass-based plastics for decarbonisation. Domestic trading house Mitsui plans to explore producing 400,000 t/yr bio-PET in the southeastern region of the US, targeting to start output during 2025-2026. By Nanami Oki Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

H2 sector wary as EU nears low-carbon rules: Correction


12/03/25
12/03/25

H2 sector wary as EU nears low-carbon rules: Correction

Corrects paragraph 7 to clarify that Hydrogen Europe's requests refer to CO2 intensity of upstream natural gas supply rather than fugitive methane emissions London, 12 March (Argus) — As the European Commission edges closer to publishing its long-awaited low-carbon hydrogen regulation expected this month, there is much at stake for prospective producers within the bloc but also potential overseas suppliers, according to industry association Hydrogen Europe. The European Commission said in its Clean Industrial Deal from late February that it intends to adopt a delegated act defining low-carbon hydrogen this quarter , following publication of a draft last summer and subsequent consultation with stakeholders. The EU has already set a CO2 emissions threshold of 3.38kg of CO2 equivalent for low-carbon hydrogen, but the delegated act will settle the details for a range of production pathways that do not fall under the EU's already-adopted definition of renewable fuels of non-biological origin (RFNBOs). These include electrolysis from non-renewable power such as nuclear or waste incineration, gas reforming with carbon capture, and methane pyrolysis. Hydrogen Europe is hoping that the adopted text — which would then require approval from the European Parliament and member states — will entail some changes it says are key to unlocking nuclear-powered hydrogen and to ensure a fair reflection of emissions from gas-based production. The association has urged the commission to allow companies buying nuclear power via power purchase agreements to factor this into their emissions calculations rather than having to use a default number that stems from the CO2 intensity of the respective country's grid. This is the only way that grid-connected projects could move ahead in countries with low renewables penetration and otherwise large swathes of production could potentially be ruled out, industry participants have said. The industry body has also stressed that the EU should let gas-based hydrogen producers use project-specific figures for the CO2 intensity of their upstream natural gas supply rather than a blanket number irrespective of the location. Project-specific figures will be used for upstream methane emissions from 2028 under a separate methane regulation, which could potentially advantage Norwegian producers with typically lower upstream emissions over producers in the Middle East and parts of the US. Hydrogen Europe's chief executive Jorgo Chatzimarkakis said the sector "desperately needs legal certainty" and complained that missing deadlines has "become standard rather than an exception" for the commission. Other industry participants have previously made similar arguments around emissions calculations for nuclear power and for upstream methane emissions and many have stressed the need for certainty around the definition. The rules are crucial because low-carbon hydrogen will be needed "in the market ramp-up phase" as "renewable hydrogen is not yet available in sufficient quantities or at sufficiently affordable prices," Chatzimarkakis said. Moreover, many renewable hydrogen projects will probably have to pivot their electrolysers to make low-carbon hydrogen in spare hours to shore up their business case. Curbing low-carbon hydrogen volumes with tight rules inadvertently weakens the case for investment in midstream infrastructure that is essential in the long term, Chatzimarkakis said. This debate on measuring the emissions of hydrogen production is the latest in a slew of painstaking procedures globally, as rule makers have tried to enshrine best practices without overly regulating the nascent industry. The EU took around two years to define renewable hydrogen and the process was hardly quicker in the US. The previous US administration of president Joe Biden clarified rules for its 45V hydrogen production tax credits in early January. It listened to pleas from producers and will allow them to use project-specific emissions calculations that might give the EU food for thought — although the future of the clean energy incentives including 45V is unclear following the return of Donald Trump to the White House in January . By Aidan Lea Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

Northwest European renewable fuel ticket prices rise


12/03/25
12/03/25

Northwest European renewable fuel ticket prices rise

London, 12 March (Argus) — The price of renewable fuel tickets in the UK and the Netherlands has firmed in recent trading sessions, but tickets remain a more competitive option to comply with domestic renewable fuel mandates than physical biofuels blending. Tickets are tradeable credits primarily generated by the sale of biofuel-blended fuels and are used to help obligated parties meet mandates for the use of renewable energy in transport. In the Netherlands, "other" and advanced renewable fuel units (HBE-Os and HBE-Gs) hit a more than three-week high of €11.10/GJ on 6 March, while in the UK, non-crop renewable transport fuel certificates (RTFCs) reached 26.25 pence/RTFC on 5 March, the highest level since 29 January. Despite the increase, RTFCs are at a discount to the like-for-like blend value of used cooking oil methyl esther (Ucome) biodiesel and hydrotreated vegetable oil (HVO) Class II ( see graph ). And in the Netherlands, HBE-Gs remain well below the like-for-like blend value of palm oil mill effluent (Pome) oil-based HVO (Class IV). This typically discourages obligated parties to physically blend biofuels. Biodiesel and HVO prices increased on higher feedstock costs, market participants said. The premiums of HVO Class II and IV against the HVO-escalated 7-28 day Ice gasoil price reached $800/m³ and $785/m³, respectively, on 7 March, the highest since 12 February. Meanwhile, the Argus Ucome biodiesel fob ARA price rose to $1,453.24/t on 4 March, its highest since 3 December. And last week, the Argus UCO fob ARA assessment hit its highest level since October 2022, driven by low supply in the ARA region and a stronger euro against the US dollar. A closed arbitrage with China, Europe's biggest importer of UCO, is putting further pressure on supply in the region, market participants said. UCO trade flows shifted away from Europe last year as significant amounts of Chinese product moved to the US at the expense of flows elsewhere. But there may be some relief for European buyers in 2025 as US buyers wait for clarity on the Inflation Reduction Act's carbon intensity-based 45Z credit. President Donald Trump's doubling of pre-existing tariffs on Chinese imports to the US to 20pc is yet to have an impact on the European market, although participants said it could put a ceiling on further price gains. SAF blending pressures HBE-IXBs HBE-IXB tickets — generated by blending biofuels made from feedstocks listed in Annex IX part B of the EU's Renewable Energy Directive — have been moving in the opposite direction. The Argus Netherlands HBE-IXB price softened to its lowest since October last year on 13 February, at €9.50/GJ (see graph) . It has since risen slightly, reaching €9.75/GJ on 11 March. The tickets are under pressure from stronger supply as some are being offered by sustainable aviation fuel (SAF) blenders, market participants said. Biofuels in aviation benefit from a 1.2x multiplier, in addition to the double counting rule for waste feedstocks. An EU-wide SAF mandate — ReFuelEU — came into effect on 1 January, replacing national obligations. Under the mandate, fuel suppliers will need to include 2pc SAF in their jet fuel deliveries in 2025, rising to 6pc in 2030. UCO-based hydrotreated esters and fatty acids synthesised paraffinic kerosine (HEFA-SPK) is the most common type of SAF available today. In the Netherlands, blending HEFA-SPK SAF into jet fuel can generate HBE-IXBs. But the Dutch ministry of infrastructure is consulting on its second draft to transpose the recast RED III . If the current draft is implemented, the Netherlands will introduce greenhouse gas (GHG) emissions reduction mandates from 2026 for land, inland shipping and maritime shipping. The first draft also included an aviation subcategory, but it was removed in February . GHG-quota by blending less lucrative in Germany The increase in biodiesel and HVO prices in the ARA region has not had an impact on German GHG certificates. Buying GHG certificates remains more cost effective than physical blending for fuel suppliers. But market participants anticipate prices rising from the end of March, which could reverse this trend. Overall blending in Germany is expected to increase this year to generate new GHG tickets, after carry-over was frozen, forcing producers to build their GHG balance from scratch in order to fulfil their 2025 quotas. Many market participants remain focused on their 2024 balance for now, and demand for advanced biofuels and HVO in Germany has been slow so far this year. By Evelina Lungu Ucome and HVO Class II versus RTFCs p/litre Advanced FAME 0 versus German €/t CO2e Ucome and HVO Class II versus HBE-IXB €/GJ HVO Class IV versus HBE-G €/GJ Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

BP including methanol unit in German Gelsenkirchen sale


12/03/25
12/03/25

BP including methanol unit in German Gelsenkirchen sale

London, 12 March (Argus) — BP's methanol unit in Germany is included in the assets it has put up for sale at its Ruhr Oel-BP Gelsenkirchen (ROG) business, the company told Argus . BP said in February it would begin seeking buyers for ROG, which includes the 257,800 b/d Gelsenkirchen refinery and an associated petrochemicals plant in western Germany. The UK company hopes to reach a sales agreement in 2025, although the exact timing will depend on regulatory and government approvals, it said at the time. Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

Chevron to produce Group III+ base oils in US


12/03/25
12/03/25

Chevron to produce Group III+ base oils in US

London, 12 March (Argus) — Chevron said it will begin Group III+ base oils production in the US, becoming the first domestic producer of these grades in North America. The Group III+, named NEXBASE 4 XP, will be produced at Chevron's 25,000 b/d base oils plant in Pascagoula, Mississippi, from the fourth quarter of 2026. Chevron will join Malaysian state-owned Petronas and South Korean Producer SK Enmove as the only global producers of Group III+, and could compete with these for market share in North America. "NEXBASE 4 XP will be globally available, starting with hubs across Europe, which will help customers optimise supply logistics and costs," said Chevron base oils general manager Alicia Logan. Use of Group III+ base oils in premium grade lubricants is rising as equipment manufacturers seek to meet the latest engine approvals. The new production will add to Chevron's portfolio of Group II, Group II+ and Group III base oils. Chevron in 2022 acquired Finish refiner Neste's Group III business , including 250,000 t/yr of Group III nameplate capacity from Finland's 197,000 b/d Porvoo refinery and 180,000 t/yr or 45pc of base oil nameplate capacity from Bahrain's 262,000 b/d Sitra refinery through a joint-venture agreement with Bapco. By Gabriella Twining Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

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