French shipping giant CMA CGM has entered a memorandum of understanding (MoU) with circular waste management solutions provider Suez, to collaborate on biomethane production in Europe.
This partnership is set to significantly bolster CMA CGM’s supply of sustainable fuel for its fleet.
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Under the MoU, Suez will provide up to 100,000t of biomethane annually to CMA CGM by 2030.
This biomethane will be utilised to power the shipping major’s gas-powered vessels.
CMA CGM Group chairman and CEO Rodolphe Saadé said: “The strategic partnership between CMA CGM and Suez, one of France’s leading players in the energy transition, marks a major step forward. It will enable us to support the biomethane sector dedicated to the shipping industry, while accelerating the decarbonisation of CMA CGM Group and guaranteeing our carbon neutrality trajectory by 2050. This project also strengthens our energy independence, a key asset for the sovereignty of France and Europe.”
The collaboration also includes a joint investment deal to be set up, with an initial funding of €100m ($108.12m) by 2030 dedicated to developing biomethane production facilities.
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By GlobalDataThese facilities aim to start in Europe and will supply not only CMA CGM but also other customers seeking sustainable fuel alternatives.
Furthermore, the agreement encompasses joint research and development efforts focusing on biofuel production technologies, with particular attention to hydrothermal gasification.
CMA CGM has been proactive in its pursuit of future fuel solutions, with dual-fuel LNG and methanol ships currently listed in its order book.
The company has 131 vessels on order, all capable of utilising low-carbon energies such as biomethane, biomethanol, and synthetic fuels, with deliveries expected by 2028.
In 2023, Suez reported the production of 382GWh of biomethane, which has supported its clients in avoiding 6.4Mt of CO2 emissions.
This was made possible by converting 5Mt of waste into energy.
SUEZ chairman and CEO Sabrina Soussan said: “I am delighted to be working with the CMA CGM Group, a key player in maritime transport. Together, we are going to develop circular solutions that will contribute to the decarbonisation of this strategic sector in Europe.”
“This partnership for biomethane production is a further illustration of SUEZ’s ambition to turn waste into new resources for the energy transition of the transport sector.”
