A.P. Moller – Maersk signs LOI with Carbon Sink for US-based green methanol supplies

In Denmark, as part of the strategy to decarbonise its customers’ supply chains, A.P. Moller – Maersk (Maersk) has entered a green methanol partnership with U.S. based project developer Carbon Sink LLC. This 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 and Maersk intends to purchase the full volume produced at the plant, with options for the output of subsequent Carbon Sink facilities at other locations.