Liner giant CMA CGM and green energy producer Abu Dhabi Future Energy (Masdar) have signed a strategic partnership to develop green fuels for shipping.
The two companies will explore long-term offtake contracts to supply CMA CGM’s growing fleet of dual-fuel ships.
Discussions will consider opportunities for potential green hydrogen and ammonia production.
TradeWinds understand Masdar will only supply green-hydrogen based fuels to CMA CGM, while biofuels and methane-based will be obtained from other sources.
The French carrier currently operates about 35 dual-fuel vessel and has another 84 on order.
CMA CGM and its United Arab Emirates-based partner will look to source, supply and deliver green alternative fuels from different bunkering locations.
The agreement will apply to vessels coming on line in 2025 and continue with the incremental phase-in of CMA CGM’s vessel through to 2028.
Then, the carrier expects to have 119 vessels in operation capable of running on green alternative fuels.
Energy agnostic
CMA CGM’s plan to reach net-zero carbon levels by 2050 by integrating a mix of low carbon fuels in its energy range.
“By being ‘energy agnostic’, we firmly believe in diversifying energy sources for our ships,” said Christine Cabau Woehrel, CMA CGM group executive vice president in charge of assets and operations.
“This approach enables us to explore and adopt a variety of energy solutions, whether biomethane, e-methane, LNG, hydrogen, electrification or other alternative fuels.”
CMA CGM’s ambition is to reach 30% total emissions reduction by 2030, compared with 2008, and 80% emission reduction by 2040.
Masdar has set itself the target of being one of the leading players in the development of green hydrogen globally, chief green hydrogen officer Mohammad Abdelqader El Ramahi said.
The company, backed by UAE-based shareholders Adnoc, Taqa and Mubadala, plans and aims to produce 1m tonnes of green hydrogen by 2030.
“It is our belief that global maritime is one of the most strategic markets for green hydrogen and synthetic fuels are one of the fastest, most rewarding market segments.”
CMA CGM said the agreement “aligns with our ‘smart-first-mover’ approach to deliver projects with strategic partners in the UAE and across the world”.
