Shipping giant Maersk unveils latest 'dual-fuel methanol vessel' in decarbonization shift

SINGAPORE — Denmark-based shipping and logistics giant Maersk unveiled its latest dual-fuel methanol vessel in the Southeast Asian country on Thursday as the industry ramps up decarbonization efforts. 

The newly named A.P. Møller is a 350-meter-long ship that adds to a growing fleet of Maersk vessels that are able to run on methanol as well as traditional marine fuels.

Speaking to CNBC's "Squawk Box Asia," Maersk's Asia-Pacific president, Ditlev Blicher, said the vessels represent the latest technology that is ready to decarbonize shipping. 

"[This technology] allows the industry to shift from black fuels or fossil fuels into what we call e-methanol, or green methanol, significantly reducing the carbon outlets of normal shipping," he said. 

Maersk broadly defines green fuels as fuels with a minimum 65% reduction in greenhouse gas emissions on a lifecycle basis compared with fossil reference fuels.

Although largely produced from fossil fuels, methanol can also be made from sustainable, renewable-based energy sources, according to the International Renewable Energy Agency.

Maersk says ships running on green methanol can save up to about 280 tons of CO2 per day, making it a key step in the company's goal of reaching net-zero emissions by 2040. 

Green methanol also has a lower sulfur content, reducing emissions of sulfur oxides, which contribute to air pollution and acid rain, according to the World Economic Forum.

Blicher said the A.P. Møller is Maersk's ninth dual-fuel vessel out of an order of 25 planned to be completed by 2027.

According to the company, replacing just 12 of its "normal" vessels with large dual-fuel methanol vessels like the A.P. Møller could save 1.5 million metric tons of CO2 — almost double the CO2 emissions