London-based multinational oil and gas company Shell and French container carrier CMA CGM Group have signed agreements to work together to accelerate decarbonisation process of the marine sector.
The deal between the two companies includes a multi-year liquefied natural gas (LNG) supply agreement, which will supply LNG to CMA CGM’s 13,000 TEU vessels in the Port of Singapore, starting from the second half of 2023.
"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," said Tahir Faruqui, general manager, head of downstream LNG at Shell.
"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," he added.
Furthermore, the two parties have signed a Memorandum of Understanding (MoU) which includes:
- the advancement of low-carbon marine fuels, such as liquid biofuels, bio/e-methane (to LNG), bio/e-methanol, for new and existing vessels
- the delivery of innovative technical solutions, which include LNG and hydrogen blending, methane slip abatement technologies and fuel cell technology development
- exploring voluntary and mandated trading mechanisms for carbon credits
- joint advocacy for net zero-emissions policies.
"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," commented Melissa Williams, vice president marine, sectors & decarbonisation.
Source: Container News
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