NTPC Green Energy in Talks with Maersk for Green Methanol Supply

NTPC Green Energy Ltd (NGEL), the green energy arm of India's largest power utility, is in preliminary talks with global shipping giant A.P. Møller – Mærsk A/S to supply green methanol for its dual-fuel ships. This collaboration could play a significant role in decarbonizing the maritime sector amid tightening global marine fuel standards.

Green Methanol: A Step Towards Sustainable Shipping

Green methanol is produced by combining green hydrogen with captured carbon dioxide, making it a low-emission fuel. The demand for such fuels is on the rise, driven by regulations like the European Union's Fuel Maritime Regulation, which mandates a 2% reduction in greenhouse gas intensity by 2025 and an 80% reduction by 2050.

“Talks have been underway with several potential buyers, including Maersk. These discussions are in the early stages,” confirmed a source close to the matter. Maersk, known for its commitment to sustainable shipping, has already ordered dual-fuel vessels capable of running on bio- or e-methanol, highlighting the importance of securing reliable green methanol suppliers.

India's Role as a Strategic Green Fuel Hub

India’s geographical proximity to major shipping routes, abundant biomass resources, vast renewable energy potential, and supportive policy framework make it a promising location for the production of low-emission fuels. A Maersk spokesperson noted, “India’s conducive environment for renewable energy and biofuel production positions it as a strategic sourcing destination for green methanol.”

NTPC's Green Vision in Andhra Pradesh

NTPC Green Energy is aggressively expanding into the production of green molecules such as green methanol, green ammonia, and green hydrogen. As part of its ambitious plans, NTPC intends to establish a green energy hub in Andhra Pradesh, aiming to export 2 million metric tonnes of green methanol annually. This initiative aligns with India’s broader goals to accelerate renewable energy adoption and establish itself as a global green fuel supplier.

A Maritime Decarbonization Milestone

The collaboration between NTPC and Maersk represents a critical step in decarbonizing the shipping industry, which is responsible for a significant portion of global greenhouse gas emissions. By investing in green methanol, NTPC is not only driving India’s renewable energy agenda but also contributing to global sustainability goals.