Hapag-Lloyd Partners with Shell for Multi-Year Bio-LNG Supply Agreement to Enhance Decarbonization Efforts

Hapag-Lloyd has solidified its commitment to sustainability by entering into a multi-year agreement with Shell Western LNG for the supply of liquefied biomethane, commonly referred to as bio-LNG. The contract, which takes effect immediately, underscores the two companies' ongoing collaboration initiated earlier in 2023 aimed at advancing alternative marine fuels.

Bio-LNG, produced from organic waste materials such as animal and food waste, offers a cleaner alternative to fossil fuels while maintaining compatibility with existing dual fuel LNG vessels. This means that Hapag-Lloyd can transition to more sustainable fuel sources without needing to make significant modifications to its fleet. The German container shipping company envisions bio-LNG as integral to its decarbonization strategy, which seeks to achieve net-zero emissions across its operations by 2045.

Shell has also expanded its bio-LNG offerings, making it available at 22 bunkering hubs worldwide, including key locations in Europe and the United States. This strategic move not only secures a reliable fuel supply for Hapag-Lloyd but also emphasizes the growing availability of alternative fuels in major shipping corridors.

Jan Christensen, Senior Director of Global Fuel Purchasing at Hapag-Lloyd, expressed that this agreement enhances fuel certainty and supply reliability, enabling the company to further incorporate waste-based renewable fuels into its operations. He emphasized that true leadership in the shipping industry involves proactive measures in utilizing lower-emission fuels available today rather than waiting for future alternatives.

Dexter Belmar, Shell's Vice President of Global Downstream LNG, echoed this sentiment, noting that bio-LNG is no longer just a concept but a tangible solution fueling the next chapter of shipping decarbonization. He asserted that long-term agreements like this are essential for building confidence and scaling the use of renewable fuels in the maritime sector.

The biomethane supplied to Hapag-Lloyd is ISCC EU certified, ensuring sustainability and traceability throughout the supply chain, while also contributing to verified reductions in lifecycle emissions. The liquefied biomethane is produced through the upgrading of biogas, derived from the decomposition of organic waste, and is subsequently liquefied and supplied to vessels on a mass-balanced basis. This innovative approach not only aids in emission reductions across Hapag-Lloyd’s LNG dual fuel fleet but also supports customers seeking more sustainable transport options.

In summary, this partnership between Hapag-Lloyd and Shell represents a significant step forward in the shipping industry’s efforts to address climate change through immediate action and the adoption of cleaner fuel alternatives.