Shell, CMA CGM sign agreements aimed at decarbonizing marine sector

From left, Farid Trad, vice president of bunkering and energy transition at CMA CGM; Carlos Maurer, executive vice president of sectors and decarbonization at Shell; Christine Cabau Woehrel, executive vice president of assets group and operations at CMA CGM; Sarah Rollings, strategic account manager at Shell; Karine Desrues, vice president of R&D assets at CMA CGM; and Melissa Williams, vice president of marine, sectors and decarbonization at Shell during a signing ceremony. (Photo: Shell)

Shell and CMA CGM Group have signed agreements that will see them work closely together to accelerate decarbonizing the marine sector.

The two companies have signed a memorandum of understanding (MOU) that encompasses:

• The advancement of low-carbon marine fuels such as liquid biofuels, bio/e-methane to liquified natural gas (LNG), and 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

• And 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 realize a net-zero future in shipping,” said Melissa Williams, an executive at Shell. “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 decarbonization goals in the process.”

Among the agreements signed is a multiyear LNG-supply agreement, which will supply LNG to CMA CGM’s 13,000 20-foot equivalent unit (TEU) vessels in the Port of Singapore, starting from the second half of 2023.

The simultaneous operation (SIMOPS) LNG bunkering will be undertaken by FueLNG, a joint venture between a unit of Shell in Singapore and Keppel Offshore & Marine Ltd. utilizing FueLNG Bellina that is already in operation and an 18,000-square-meter LNG bunker vessel that will come into service in 2023, further enhancing the reliability of its LNG-bunkering operations.

“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, the general manager and head of downstream LNG at Shell. “By using LNG as a marine fuel, the industry immediately places itself on a decarbonizing 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.”

As Shell and CMA CGM are longstanding partners, both companies plan to extend their partnership to the road and aviation sectors in the future.

“In doing so, this demonstrates the vital role effective partnerships will play in accelerating decarbonization in shipping and beyond,” Shell stated.