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CMA CGM Group and SUEZ Partner to Produce Biomethane Fuel

containership fueling
CMA CGM seeks to create alternative fuel sources for its fleet of LNG-gas pwoered vessels (CMA CGM)

Published Oct 22, 2024 6:47 PM by The Maritime Executive

 

French shipping major CMA CGM Group is taking another step to create fuel as part of its efforts to decarbonize its operations and to protect its more than $18 billion investment in a new generation of vessels. CMA CGM reports it signed an agreement with French waste-to-energy company SUEZ that calls for the production in Europe of up to 100,000 tones of biomethane per year by 2030.

Supply of new alternative fuels continues to be a major concern for the entire shipping industry and other sectors that look to the alternatives to make it possible for the companies to meet the emerging requirements for lowered carbon emissions. CMA CGM Group CEO Rodolphe Saade said the agreement with SUEZ “marks a major step forward,” in the efforts to create a source of biomethane fuel. He said it would enable support for the biomethane sector dedicated to the shipping industry and strengthen energy independence for France and Europe.

“The aim of this collaboration between two complementary players is to establish a long-term industrial partnership on biomethane, a renewable fuel produced through waste recovery, to help decarbonize shipping in Europe,” the companies said reporting the agreement signed on October 18.

Under the terms of the memorandum of understanding, CMA CGM and SUEZ will create a joint investment structure with initial funding of €100 million ($108 million at current conversion rates) for a first stage to develop biomethane production facilities by 2030. They said the sites to be initially located in Europe would supply both CMA CGM Group and other companies in the sector.

Together they plan joint research and development initiatives aimed at designing innovative technologies for the production of biofuels. In particular, they will focus on a hydrothermal gasification process and look to build on SUEZ’s expertise in waste-to-energy. 

Creating a supply of biomethane and other synthetic non-carbon fuels is a critical part of the group’s decarbonization strategy. CMA CGM highlights that it is investing $18 billion in orders for 131 vessels capable of using low-carbon energies (biomethane, biomethanol, and synthetic fuels), which will be operational by 2028. CMA CGM Group is also working alongside energy providers to develop production facilities and supply chains for these fuels.

The announcement highlights that SUEZ has extensive expertise in the production of local and sustainable energy and secondary raw materials from waste to support the decarbonization of local authorities and industrial customers. SUEZ reports it converts five million tonnes of waste into energy every year and produced 382 GWh of biomethane in 2023.