Maritime to lead transport decarbonisation under Shell - CMA CGM deal

Photo: CMA CGM CMA CGM Jacques Saade calling in the port of Rotterdam
The 23,000 teu, LNG-powered CMA CGM Jacques Saade in the Port of Rotterdam
Where the maritime industry leads, aviation and road transport will follow under a Shell and CMA CGM Liquefied Natural Gas (LNG) supply deal.

From the second half of 2023, FueLNG will carry out simultaneous operation bunkering in Singapore for CMA CGM’s 13,000 teu boxships.

The partners said that they plan to extend their agreements, which include LNG supply and broader partnerships on decarbonization, into the road and aviation sectors in the future.

A joint venture between Shell Singapore and Keppel O&M, FueLNG will deploy 18,000 cu m LNG bunkering vessel FueLNG Bellina and another vessel due to come into service in 2023.

CMA CGM has committed to using LNG as a transitional fuel on its decarbonization journey, and is involved in a series of partnerships around decarbonization. Earlier this week CMA CGM signed an MoU with the Maritime and Port Authority of Sinagpore (MPA) to develop green technologies, explore the use of low carbon fuels and support maritime decarbonization.

Similarly, the latest MoU with Shell covers the advancement of low carbon fuels including liquid biofuels, bio/e-methane (to LNG), and bio/e-methanol. Technical solutions covered in the agreement including the blending of LNG and hydrogen, fuel cell development and technology to reduce methane slip.

Tahir Faruqui, General Manager, Head of Downstream LNG at Shell, said: “CMA CGM continues to see the potential in LNG as a marine fuel, so it is a hugely positive step to be extending our supply commitments in this area. By using LNG as a marine fuel, the industry immediately places itself on a decarbonising pathway, starting today. LNG is a fuel in transition and offers a credible pathway to liquefied biomethane and the hydrogen-based fuel liquefied e-methane; both having the potential of being net zero.”

Melissa Williams, Vice President Marine, Sectors & Decarbonisation at Shell, said: “Collaboration and partnership are critical in paving the way, which will include a mosaic of lower-carbon fuels, technology sharing and partnership projects to realise a net zero future in shipping. Thus, I am excited about our agreement with CMA CGM as it allows both businesses to bring their respective scale and size to drive impactful change in the industry – helping our customers to overcome their challenges and meet their ambitious decarbonisation goals in the process.”