Denmark’s AP Moller-Maersk has revealed another deal to guarantee supplies of green methanol for its new vessels.

The partnership with US-based project developer Carbon Sink is the giant owner’s eighth agreement for the fuel.

The first Carbon Sink facility will be located at Red River Energy’s existing bioethanol plant in Rosholt, South Dakota.

Production capacity will be 100,000 tonnes per year.

Start-up is pencilled in for 2027 and Maersk will buy the whole output, with options on more methanol from future Carbon Sink plants.