Danish shipping and logistics group Maersk has sealed a strategic cooperation deal with Shanghai International Port Group (SIPG) for a methanol marine fuel project at the world’s largest container port.

Under a memorandum of understanding, the two parties will work together to explore green methanol ship-to-ship bunkering after Maersk takes delivery of its dual-fuel containerships in 2024.

Maersk expects 19 of these vessels to enter service and said that setting up methanol port bunkering infrastructure is one of the key elements on its way to achieving a net-zero emissions target for 2040 across the entire business.

The deal will also support Shanghai port achieve its goal of becoming one of the world’s first commercial green methanol refueling points, as well as a regional green methanol fuel bunkering centre.

Maersk said the first stage of the cooperation is expected to see SIPG provide bunkering and fuel tank storage at the port, while the potential second phase could see the parties explore how to form an all-round energy strategic partnership to promote the extension of bunkering services to the upstream of the green methanol industry chain.