by Lloyd's List

22 Oct 2024 (Lloyd's List) - CMA CGM has signed a memorandum of understanding with French utility Suez to receive up to 100,000 tonnes of waste-based biomethane per year between now and 2030, as the French carrier tries to secure alternative fuels for its large dual-fuel LNG fleet.

The MOU also includes the creation of a joint investment structure with an initial funding of €100m ($108m) to develop biomethane production facilities in Europe to supply both CMA CGM and other shipping companies.

CMA CGM has invested $18bn to order 131 dual-fuel LNG and methanol vessels, which will be in operation by 2028, the company said.

Mass-balanced biomethane is among the most viable alternative fuels to reach maximum emissions reduction in this decade, as green hydrogen and derived e-fuel projects continue to face delays because of higher costs and lack of buyers.

Suez converts 5m tonnes of waste into energy every year and it generated 382 GWh from biomethane in 2023, the utility said.

In a recent pioneering tender for low-emission freight, Hapag-Lloyd won by offering to carry containers on vessels using mass-balanced biomethane, as there were no mature bids for e-fuels.

A modern Hapag-Lloyd boxship will run on 20,000 tonnes of mass-balanced biomethane for this tender in 2025 and 2026 to deliver 90% emissions reductions to cargo owners, according to the Zero-Emissions Maritime Buyers Alliance that organised the tender.