A.P. Moller-Maersk (Maersk) on Tuesday (17 October) shared its recommendations for green transformation and decarbonisation of the shipping industry in Shanghai, according to the Methanol Institute CEO Gregory Dolan on 18 October.

Dolan said the 35th Shanghai Mayors International Advisory Conference (IBLAC) was successfully held yesterday. After three years of online meetings, the members of the City Advisory Committee reunited in Shanghai to feel the changes in the city while providing suggestions for the development of Shanghai.

Under the theme of "Change and New Opportunities: Accelerating the Construction of a More Dynamic and Resilient International Metropolis”, Robert Maersk Uggla, Chairman of the Board of A.P. Moller-Maersk, was invited to participate in the meeting and share Maersk's recommendations on green transformation and decarbonisation of the industry.

“Many port cities worldwide have ambitions and plans to transform into green shipping centres, and Shanghai is uniquely positioned to be a first mover and a leading global green shipping centre. Shanghai is home to the world's largest container port, and with green fuel supplies and infrastructure in place, many of the green-fuel ships ordered today will naturally be deployed in Shanghai,” Uggla said.

In this regard, Maersk made the following recommendations:

First, working closely with industry players to plan green fuel bunkering facilities in parallel with other leading global ports such as Rotterdam and Singapore, including the required storage facilities and bunkering #vessels for efficient simultaneous operation of ships (SIMOPS).

Secondly, it is consistent with international custom and usage regarding safety criteria and operating procedures (SOPs).

Third, assess tax regulations to ensure the supply of green methanol produced or imported in China is competitive.

Finally, consider developing a shipping decarbonisation plan similar to the EU ETS and creating incentives for using green fuels to drive investment in green methanol production in China.

Uggla stressed that the production of green fuels and green chemicals will be one of the largest industrial development opportunities in China's history.

“To produce 100 million tonnes of green methanol requires an investment of up to USD 500 billion, which will benefit producers, renewable energy source and hydrogen energy developers, and other players in the value chain,” he said.

“In September this year, Maersk's world's first green methanol vessel was named and put into operation. In addition, the Company's first batch of ultra-large green methanol-fuelled vessels will be delivered in early 2024, and nearly 200 green methanol-fuelled vessels have been ordered and retrofitted globally.”

“We hope the green methanol made in China will be ready by then and that the green methanol refuelling infrastructure in Shanghai Port will be complete. To our knowledge, Shanghai has made significant progress in these areas and we are confident that Shanghai will be ready for a new generation of green ship services and become the world's leading green shipping centre.”

Manifold Times previously reported Maersk signing a Memorandum of Understanding (MOU) with Shanghai International Port Group (SIPG) on strategic cooperation for Shanghai Port methanol marine fuel project.

The two parties will join hands to explore green methanol fuel vessel-to-vessel bunkering operation after Maersk’s green methanol container vessels are delivered in 2024.