Shell International Petroleum Company (Shell) and CMA CGM Group have signed agreements to accelerate decarbonisation across the marine sector.
The agreements comprise a multi-year liquefied natural gas (LNG) agreement to supply LNG to CMA CGM’s 13,000 TEU vessels in the Port of Singapore from the second half of 2023.
FueLNG, a joint venture between a unit of Shell in Singapore and Keppel Offshore & Marine Ltd (Keppel O&M), will undertake the simultaneous operation (SIMOPS) LNG bunkering by utilising FueLNG Bellina – already in operation – and an 18,000m3 LNG bunker vessel – coming into service in 2023.
The parties have further signed a Memorandum of Understanding (MoU) that encompasses the advancement of low-carbon marine fuels 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 realise a net zero future in shipping,” said Melissa Williams, Vice President Marine, Sectors & Decarbonisation 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 decarbonisation goals in the process.
“As Shell and CMA CGM are long standing 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 decarbonisation in shipping and beyond.”
The companies planned to develop a range of technologies that can reduce emissions from existing assets and help to enable a net-zero emissions future for shipping.