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Equinor (EQNR) to Supply Green Methanol Bunker Fuel for Maersk

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Equinor ASA (EQNR - Free Report) entered an agreement to ensure a steady green methanol supply for Maersk’s recently commissioned feeder vessel in its early operational phase.

The agreement is scheduled to be in effect from the present month until the first half of 2024, ensuring a continuous supply of green methanol for the vessel. The vessel is set to commence operations with a route from Northern Europe to the Baltic Sea.

The green methanol will be bunkered in Rotterdam. Green methanol originates from biogas derived from manure. The biogas is enhanced to become biomethane, which is introduced into the pre-existing gas network. The production of methanol is based on a mass-balance approach using the biomethane from the grid.

Equinor has a strong presence in the European methanol market, thanks to its production facility in Tjeldbergodden. The company aims to establish a significant presence as a supplier of green methanol within the marine fuel sector.

Methanol, along with alternative low-carbon fuels, holds promise for diminishing carbon dioxide emissions within the maritime industry. The significance of methanol lies in its capacity to play a pivotal role in advancing toward a greener and more sustainable energy environment.

Bringing energy industry leaders to the forefront and initiating large-scale supply of future fuels is of utmost importance. The latest agreement is essential to further expedite the innovative path toward a green fuel economy in global shipping.

As the industry sees orders for more than 100 methanol-enabled vessels, the demand to produce green fuel is increasing and is expected to continue its upward trajectory in the coming years. Maersk has chosen methanol as the fuel for 19 dual-fuel ships currently on order.

In the long term, the feeder vessel will be fueled by e-methanol from a southern Denmark facility. This is expected to come online in the first half of 2024.

Price Performance

Shares of EQNR have outperformed the industry in the past six months. The stock has gained 13.8% compared with the industry’s 6.8% growth.

 

Zacks Investment Research
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Zacks Rank & Stocks to Consider

Equinor currently carries a Zack Rank #3 (Hold).

Investors interested in the energy sector might look at the following companies that presently carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Core Laboratories N.V.’s (CLB - Free Report) strong presence in the emerging shale plays and its global footprint will provide for steady growth rates, going forward. CLB’s technology-heavy portfolio of proprietary products and services gives it the opportunity to optimize production from new and existing fields.

Core Labs has witnessed upward earnings estimate revision for 2023 and 2024 in the past 60 days. The consensus estimate for CLB’s 2023 and 2024 earnings per share is pegged at 87 cents and $1.17, respectively.

Murphy USA (MUSA - Free Report) is a leading independent retailer of motor fuel and convenience merchandise in the United States. Over the past 30 days, MUSA has witnessed upward earnings estimate revisions for 2023 and 2024, respectively.

The Zacks Consensus Estimate for Murphy USA’s 2023 and 2024 earnings per share is pegged at $21.44 and $21.37, respectively. MUSA currently has a Zacks Style Score of A for Value and Momentum.

Global Partners (GLP - Free Report) is a leading operator of gasoline stations and convenience stores. Over the past 60 days, GLP has witnessed upward earnings estimate revisions for 2023 and 2024, respectively.

The Zacks Consensus Estimate for Global Partners’ 2023 and 2024 earnings per share is pegged at $3.46 and $3.69, respectively. GLP currently has a Zacks Style Score of A for Value and Growth.

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