Hapag-Lloyd and Southern Energy ink LOI for green methanol offtake
- Published
by Admin
US-based clean fuels developer Southern Energy Renewables on Thursday (7 May) announced the execution of a Letter of Intent (LOI) with Hapag-Lloyd AG, marking the start of a strategic collaboration to advance large-scale green methanol production in St. Charles Parish.
The LOI establishes a framework for project development and the long-term offtake of green methanol, subject to the achievement of key milestones associated with Southern Energy’s proposed USD 1.4 billion flagship project. Southern Energy plans to build a biomethanol plant in St Charles Parish, Louisiana.
The agreement also contemplates potential co-investment in future production facilities. Advancement of these milestones is expected to inform the State of Louisiana’s evaluation of a proposed USD 400 million bond allocation.
Jay Patel, Chief Executive Officer of Southern Energy Renewables, said: “This agreement represents an important step forward in our mission to deliver scalable, low-carbon fuel solutions while generating meaningful economic impact.
“Our collaboration with Hapag-Lloyd and the State of Louisiana reflects a shared commitment to strengthening domestic energy production, enhancing supply chain resilience, and revitalising key industrial sectors.
“We are proud to support job creation, advance the biomass ecosystem, and reinvigorate critical infrastructure such as sawmills while delivering long-term value to local communities and contributing to the broader energy transition.”
Jan Christensen, Senior Director – Global Fuel Purchasing of Hapag-Lloyd, said: “Green methanol represents a key pathway within Hapag-Lloyd’s multi-fuel strategy, underscoring our commitment to advancing more sustainable shipping solutions. This initiative with Southern Energy Renewables Inc. is seen as a valued step towards achieving net-zero fleet operations at Hapag-Lloyd AG by 2045.”
Ilyas Muhammad, Head of Green Fuels – Global Fuel Purchasing of Hapag-Lloyd, said: “Southern Energy’s green methanol project is strategically important to Hapag-Lloyd’s green fuels offtake ambitions, offering a long-term, cost-competitive pathway to replacing fossil fuels with green alternatives. We look forward to continuing our discussions and finalising a binding offtake agreement in the coming months.”
Photo credit: Hapag-Lloyd
Published: 11 May, 2026
