Shell supply deal to boost shipping group CMA CGM’s use of low-sulphur biofuel
Container shipping group CMA CGM is to increase its use of sustainable marine bio-fuel oil through a supply deal with Royal Dutch Shell, following a pilot scheme this year with furniture retailer IKEA.
Shell is to supply CMA CGM with several tens of thousands of tonnes of fuel consisting of 80% low-sulphur fuel oil and 20% biofuel, the companies said in a statement.
The biofuel component would come from recycled cooking oil, they said.
The new fuel would allow an 80% reduction in greenhouse gas emissions and virtually eliminate sulphur oxide emissions, they added.
Shell had already started supplying the biofuel to CMA CGM, the shipping firm added.
The supply deal followed a biofuel test conducted this year by CMA CGM and IKEA on container ships.
Shipping companies are facing a January deadline to comply with stricter global limits on sulphur emissions, and are also under pressure to cut their carbon footprint.
Firms have been adopting low-sulphur fuel oil, while also looking at other fuels including gas and fitting filters to reduce sulphur emissions from standard heavy fuel oil.
French-based CMA CGM, the world’s fourth-largest container line, has ordered around a dozen giant vessels to be powered by liquefied natural gas and partnered with energy group Total to develop LNG refuelling.
Source: Reuters (Reporting by Gus Trompiz; Editing by Emelia Sithole-Matarise)