Shell and Hapag-Lloyd collaborate on decarbonizing marine fuel
Shell Western LNG BV (Shell) and Hapag-Lloyd announced last week the signing of a multi-year agreement to supply liquefied natural gas (LNG) to Hapag-Lloyd’s 23,500 ultra-large dual-fuel container ships. + six meter equivalent units (TEU). Fueling of these twelve new ships is expected to start during the second half of 2023 and the LNG will be supplied from the port of Rotterdam in the Netherlands.
Modern ships will be placed on the Europe – Far East routes.
The ships will call at major ports including Rotterdam, Hamburg, Singapore, and Shanghai.
The use of LNG enables Hapag-Lloyd to immediately reduce the CO2 impact of these ships by almost 23% compared to conventional fuels. In addition, the use of LNG contributes to the almost complete reduction of particulate emissions. This is another important step for Hapag-Lloyd to reduce emissions and decarbonize its fleet, in line with its goal of achieving carbon neutrality by 2045.
Exploring Feasibility
Shell is exploring feasibility and investing in a wide range of fuels, technologies and solutions that will help decarbonise shipping. This includes the use of LNG, where, through an extensive network of 15 liquefied natural gas bunkering sites in 10 countries around the world, Shell has achieved more than 1,000 safe bunkering operations for each ship to its marine customers.
In conjunction with the LNG supply agreement, Shell and Hapag-Lloyd have entered into a strategic collaboration agreement to accelerate the progressive decarbonisation of alternative marine fuels. Initial focus will be on developing the potential for additional low-carbon fuel solutions, including liquefied biomethane and e-methanol. As a marine fuel, liquefied biomethane has the potential to reduce greenhouse gas emissions by 65% to 100% (3).
“We are delighted to join Hapag-Lloyd in this important initiative. The decarbonisation of transport needs to accelerate, and as LNG is the lowest carbon fuel available on a large scale today, it is an essential part of the transition to low carbon marine fuels. As we look to the future, we are committed to continuing to work with leading transport companies, such as Hapag-Lloyd, to establish possible pathways to carbon neutrality,” said Tahir Faruqui, Managing Director, Head LNG Downstream at Shell.
LNG at competitive prices
“We are pleased to share in the execution of this long-term supply agreement. Hapag-Lloyd has finalized a contract with Shell, which ensures flexible supply of LNG on competitive terms. In addition, we are excited regarding our agreement with Shell to explore future decarbonization opportunities, as this enables companies to make changes that have a major impact on the industry.
Collaborations like this are crucial to helping us realize our sustainability strategy while improving emissions in shipping. Ultimately, this allows our customers to also reduce their carbon footprints,” summarizes Jan Christensen, Global Director Fuel Purchasing at Hapag-Lloyd.
This announcement supports Shell and Hapag-Lloyd’s long-standing collaboration, which in recent years has included the LNG bunkering of the “Brussels Express”, the world’s first large container ship to be converted to gas propulsion.
Hapag-Lloyd envelope
With a fleet of 252 modern container ships and a total transport capacity of 1.8 million TEU, Hapag-Lloyd is one of the world’s leading shipping lines. The company has approximately 14,500 employees and 400 offices in 137 countries.
Hapag-Lloyd has a container capacity of approximately 3.0 million TEU – including one of the largest and most modern fleets of reefer containers. A total of 123 transatlantic services worldwide guarantee fast and reliable connections between more than 600 ports on all continents. A total of 126 liner services worldwide ensure fast and reliable connections between more than 600 ports on all continents. Hapag-Lloyd is a leading operator in the Transatlantic, Middle East, Latin America and Intra-America businesses.
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