French shipping and logistics company CMA CGM has signed a long-term agreement with Shanghai International Port Group (SIPG) and Shanghai Electric to develop a fully integrated green methanol value chain.
Under this agreement, Shanghai Electric will supply CMA CGM with bio-methanol produced at its Taonan base in Liaoning Province, which will be transported via a land-sea network to the Port of Shanghai. The Taonan plant is expected to begin operations in June this year, with an initial annual production capacity of 50,000 tons of bio-methanol. Shanghai Electric aims to boost the volume to 200,000 tonnes if the product’s commercial viability is proven.
Meanwhile, Shanghai is developing itself into a green fuel bunkering hub, targeting annual capacities of 1 million tons of low-emission methanol and biofuel by 2030.
CMA CGM said the collaboration was a significant step in achieving its decarbonization goals and injects new momentum into the global shipping industry’s green transition. It will also expedite Shanghai Port’s development into a regional green methanol bunkering hub.
“At CMA CGM, we address the challenges related to the availability of clean fuels,” said Farid Trad, Vice President of Bunkering & Energy Transition. “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, the first of 12 new dual-fuel methanol vessels, set sail. The company has more than 20 methanol-powered ships on order.
