Hapag-Lloyd and Shell Western LNG B.V., or “Shell” for short, signed a multi-year agreement for the supply of liquefied bio-methane (LBM), effective immediately. This agreement is based on the strategic cooperation established in2023 and aims to accelerate the decarbonization of alternative marine fuels.
Bio-methane, also known as Bio-LNG, plays a role in Hapag-Lloyd’s decarbonization strategy. With a goal of achieving net-zero emissions from the operations of its fleet by 204, bio-methane helps to reduce emissions across its entire fleet and supports customers in the decarbonization of their supply chains.
Since 2024 Shell has expanded its product portfolio to include LBM. LBM is now available at 22 strategic locations within its global LNG bunkering network.
Jan Christensen Senior Director Global Fuel Procurement at Hapag-Lloyd, commented: “This agreement helps to ensure the fuel security and reliability of supply that we need to further the use of waste-based renewable fuels across our fleet – reducing emissions without compromising on the quality and reliability that our customers expect. Collaboration such as this demonstrates that true leadership in the shipping industry means taking action now – using low-carbon fuels that are available today, rather than waiting for future solutions.”
Dexter Belmar, Vice President LNG Downstream at Shell, added: “Bio-LNG is no longer just a concept – it’s here, and it’s driving a new chapter of decarbonization shipping. These long-term agreements help build the confidence needed to scale up the use of renewable fuels.”
The LBM supplied to Hapag-Lloyd is under the International Sustainability and Carbon Certification (ISCC EU), ensuring the sustainability of feedstock production, traceability of sustainable products throughout the supply chain, and credible andifiable greenhouse gas emission reduction effects along the entire life cycle.
Bio-methane is a drop-in fuel that allows for a seamless transition to renewable fuels with no required to Hapag-Lloyd’s LNG dual-fuel vessels. Bio-methane is produced by upgrading biogas generated from the decomposition of organic waste as agricultural residues, livestock manure, and food waste, by removing carbon dioxide and impurities. The bio-LNG is then injected into the local natural gas network and supplied vessels as LNG following liquefaction and in a mass-balanced way.
