Maersk and Carbon Sink Sign Strategic Partnership


As part of the strategy to decarbonize its customers' supply chains, A.P. Moller - Maersk (Maersk) has entered a green* methanol partnership with U.S.-based project developer Carbon Sink LLC. It is Maersk's 8th such agreement in the efforts to accelerate global production of green methanol. 

The parties have signed a Letter of Intent covering the development by Carbon Sink of green methanol production facilities in the United States. The first facility will be co-located with the Red River Energy existing bioethanol plant in Rosholt, South Dakota, USA, and will have a production capacity of approximately 100,000 tonnes per year. 

The commercial start is anticipated in 2027. Maersk intends to purchase the total volume produced at the plant, with options for the output of subsequent Carbon Sink facilities at other locations. 

Carbon Sink uses commercially available technology to produce green methanol by combining green hydrogen from water electrolysis using additional renewable electricity and biogenic CO2. The CO2 for the first project will be waste CO2 captured from the Red River Energy bioethanol plant, recycling those emissions into green methanol.

Carbon Sink joins seven other strategic partners working to secure the green fuel needed for the 19 container vessels Maersk currently has on order which can operate on green methanol. In March, Maersk announced six partnerships with CIMC ENRIC, European Energy, Green Technology Bank, Orsted, Proman, and wasteful with the intent of sourcing at least 730,000 tonnes per year by the end of 2025.