German container shipping company Hapag-Lloyd has signed a letter of intent with US clean fuels developer Southern Energy Renewables covering potential long-term green methanol supply from a proposed production project in Louisiana.
The agreement establishes a framework for project development and future methanol offtake linked to Southern Energy Renewables’ planned $1.4 billion facility in St. Charles Parish, Louisiana.
The companies said the arrangement could also include potential co-investment in future production facilities, subject to development milestones being achieved.
The project is also tied to the State of Louisiana’s consideration of a proposed $400 million bond allocation.
“Green methanol represents a key pathway within Hapag-Lloyd’s multi-fuel strategy,” Jan Christensen, Senior Director of Global Fuel Purchasing at Hapag-Lloyd, said.
Ilyas Muhammad, Head of Green Fuels at Hapag-Lloyd, said the project could provide a “long-term, cost-competitive pathway” for replacing fossil fuels with greener alternatives.
Southern Energy Renewables is developing biomass-to-fuels projects producing synthetic jet fuel and green methanol supported by carbon capture and sequestration technologies.
