Global shipping company CMA CGM Group will make a minority investment in Vanguard Renewables which makes renewable natural gas (RNG) or biomethane for maritime shipping decarbonization using organic waste from farms and food and beverage manufacturers and retailers.
The shipping company will make the investment through its energy fund PULSE, ensuring access to significant volumes of RNG to be delivered on a long-term basis to support the decarbonization of its shipping activities.
According to the International Energy Agency, RNG or biomethane “is a near-pure source of methane produced either by “upgrading” biogas (a process that removes any CO2 and other contaminants present in the biogas) or through the gasification of solid biomass followed by methanation. Ideally using biomethane for maritime shipping decarbonization, prevents this highly toxic greenhouse gas from being emitted in the atmosphere as it would during the rotting of agricultural and forestry as well as food waste.
The company’s investment in Vanguard Renewables comes as the International Maritime Organization (IMO) recently announced its Net-zero Framework. Under the draft regulations, shipowners must reduce greenhouse gas (GHG) emissions or face financial penalties if they exceed a GHG fuel intensity threshold.
Under the terms of the agreement, Vanguard Renewable will dedicate up to four projects to CMA CGM production produced in its large-scale facilities across the U.S.
“We are thrilled to partner with CMA CGM, the third largest container shipping company in the world, in support of their decarbonization objectives,” said Michael O’Laughlin, CEO of Vanguard Renewables. “We see this pioneering collaboration as a key step in supporting the maritime sector as the global industry takes a bold step toward improving emissions.”
Vanguard Renewables is a portfolio company of Global Infrastructure Partners (GIP), part of BlackRock.
