Maersk

• The agreement grants EENA the option to purchase biogenically produced CO2, critical for the production of e-fuels, over a span of up to 15 years, with potential for extension thereafter.
• The biogenic CO2 sourced from Montauk will be used for even larger e-methanol facilities in Texas that European Energy is currently developing.
• This landmark agreement is a testament to European Energy’s dedication to driving forward sustainable energy solutions such as green hydrogen, e-methanol, and sustainable aviation fuel, across North America.
• Biogenic CO2 plays a crucial role in the production of carbon-based e-fuels, and this agreement highlights the possibility of sourcing this essential component within the U.S. enabling the replacement of fossil-based fuels and chemicals from locally produced e-fuels.

• and LIVERPOOL, U.K., July 27, 2023 (GLOBE NEWSWIRE) -- Berkshire Grey, Inc. , a leader in AI-enabled robotic solutions that automate supply chain processes, and Maersk , an integrated logistics company working to connect and simplify its customers’ supply chains, today announce their first collaboration in the UK.
• "Berkshire Grey's AI-enabled robotic solutions have a proven track record across various industries in North America and we are delighted to tap into these benefits for our customers in UK now," says Fergus Whinham, Area Head of the "Fulfilled by Maersk" product in UK & Ireland.
• "This sophisticated, flexible system reflects our commitment to optimizing processes and better serving our customers in rapidly evolving markets."
• “We are excited to collaborate closely, leveraging our expertise and passion for automation, to create a transformative impact for Maersk and their customers."

• Maersk received the world’s first dual-fuel methanol container ship in July 2023, and dozens more container ships that can run on alternative fuels are currently on order.
• New European Union rules will also soon go into effect that will significantly raise costs for ships burning highly polluting sulfur fuel oil.
• I spent several years working in the shipping industry and follow it as a researcher and analyst.

Setting their own direction

• At this time, that’s the only direction the IMO has provided regarding the emissions-pricing mechanism.
• While the new strategy may not have been as clear or restrictive as many people hoped, the IMO may be providing the maritime industry an opportunity to set the direction itself.
• Purchases like Maersk’s and Evergreen’s are an indication that the maritime industry will be moving in the direction of greener fuels.

Building a supply chain

• The other significant challenge faced by the maritime industry is having a sufficient supply chain available to support dual-fueled vessels, which can operate on alternative fuels.
• With Maersk, Evergreen and others preparing to operate more dual-fuel containerships, the industry is demonstrating demand so the green-methanol supply chain can develop, and hopefully soon.

Not mandatory, but many countries will try

• The statement seems to have been included as a means to appear focused on achieving goals while placating some countries that may not be able or willing to meet the goals by 2030 or beyond.
• Adding such language appears to say that the IMO is serious about emissions and understands that some countries may have significant challenges to meet the standards.
• Many countries, such as the U.S., United Kingdom, Australia and those in the European Union, will work to meet the strategy, I believe.

Who pays for the higher costs?

• By some estimates, green methanol costs three times as much as low-sulfur fuel oil.
• Shipping lines will soon also face higher costs from the European Union if they don’t clean up their emissions.
• The costs to those with high emissions are expected to significantly increase the operating costs for the global shipping fleet.

• DP World , a leading provider of end-to-end supply chain solutions, announces the appointment of Douglas Smith as Chief Executive Officer of DP World’s operations in Canada.
• Smith will be responsible for executing DP World’s vision in Canada, leading the company’s portfolio of operations, and driving efficient, sustainable end-to-end supply chain solutions for customers across North America.
• “Doug joins DP World with an impressive track record of achieving ambitious operational goals in challenging environments, launching new services, and excelling across various functional areas.
• Mihic, who has been with DP World for more than 25 years, was instrumental in expanding DP World’s operations in Canada.