CMA CGM expands green methanol cooperation with Shanghai

CMA CGM expands green methanol cooperation with Shanghai

CMA CGM, SIPG Energy and Shanghai Electric Group are joining forces to build a sustainable green methanol supply chain.

The three parties have signed a Green Methanol Long Term Supply Cooperation Agreement to develop a fully integrated green methanol value chain

Under the agreement, Shanghai Electric Group will provide mid-to-long-term green methanol fuel supply for CMA CGM. In partnership with SIPG, green methanol will be transported via land-sea combined logistics from production base in Taonan to Shanghai Port, the world’s largest container port.

CMA CGM said the collaboration was a significant step in achieving its decarbonisation goals and injects new momentum into the global shipping industry’s green transition. It was also seen will expedited Shanghai Port’s development into a regional green methanol bunkering hub, securing its first-mover advantage in the low-carbon transformation of shipping.

Farid Trad, Vice President of Bunkering & Energy Transition, said:

At CMA CGM, we address the challenges related to the availability of clean fuels.

“Our partnership strategy drives us to implement innovative and sustainable solutions to achieve our energy transition objectives. Our landmark collaboration with SIPG and Shanghai Electric Group marks a new milestone and shows our commitment to Net Zero-Carbon by 2050,”

Last month, CMA CGM IRON, the group’s first 13,000 teu dual-fuel methanol vessel just set sails, the first of 12 new dual-fuel methanol vessels.

A major concern for shipowners that have ordered methanol dual-fuel tonnage is the availability of green methanol to power the vessels.

Additionally, CMA CGM and SIPG inked a strategic cooperation MoU to reinforce the long-standing partnership, which will deepen cooperation in multiple fields such as decarbonization, digital technologies, intermodal solutions, and operational efficiency, setting new benchmarks in the industry.

SIPG and CMA CGM have been long term partners. The two have pioneered in large-scale adoption of onshore power solutions for vessels. In the past year, CMA CGM has also made considerable progress in ro-ro business and is committed to enhancing Shanghai’s position as a global shipping hub and transshipment centre.

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CMA CGM expands green methanol cooperation with Shanghai, source