EMEA News
Shell to Supply Hapag-Lloyd with Bio-LNG Under Multi-Year Agreement
German container firm Hapag-Lloyd has signed a multi-year agreement with Shell Western LNG B.V for bio-LNG supply to power its dual-fuel boxship fleet.
The contract takes effect immediately and builds on both firms' 2023 partnership to advance alternative marine fuels, Hapag-Lloyd said in a statement on its website on Thursday.
Bio-LNG, also known as liquefied biomethane, is produced from biomass feedstocks, including animal and food waste. It is chemically identical to fossil LNG and can be used in existing dual-fuel LNG vessels without modifications.
Several shipowners have begun bunkering bio-LNG as a cleaner alternative to fossil LNG, with supply becoming increasingly available at major hubs
Hapag-Lloyd sees bio-LNG playing a key role in its decarbonisation strategy as it moves to achieve net-zero fleet operations by 2045.
Since 2024, Shell has expanded its bio-LNG offering to 22 bunkering hubs worldwide, including several in Europe and the US.
"This agreement helps secure the fuel certainty and supply reliability we need to further expand the use of waste-based renewable fuels across our fleet – cutting emissions without compromising the quality and reliability our customers expect," Jan Christensen, Senior Director Global Fuel Purchasing at Hapag-Lloyd AG, said.
"These long-term deals help build the confidence needed to scale renewable fuels," Dexter Belmar, Shell's Vice President Global Downstream LNG, said.
