Energy giant Shell and shipping company CMA CGM have agreed a new partnership with the aim of speeding up the decarbonisation process in the marine shipping sector.
Shell, which also makes products like the Gadus grease, has already announced that it will supply a substantial amount of marine biofuel to CMA CGM, but the new agreements include a multi-year commitment to supply liquefied natural gas (LNG) to fuel CMA CGM’s 13,000-TEU container vessels, starting from later next year at the Port of Singapore.
The two companies also agreed to a Memorandum of Understanding (MoU) about progressing the development of low-carbon fuels for both existing and new marine vessels. The MoU also covers the pursuit of technological innovations in the areas of fuel cells, methane abatement and the blending of hydrogen with LNG, as well as commitments to jointly advocate policies for net-zero emissions and investigate mechanisms for trading carbon credits, both mandatory and voluntary.
Shell Vice President Melissa Williams said that such partnerships were vital to sharing the technologies needed to achieve a net-zero shipping industry, adding:
“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.”
Williams also said the two companies intended to build on the relationship in future to cover the aviation and road sectors, further highlighting the critical importance of partnerships in driving decarbonisation.