CMA CGM Group, Suez sign MoU for production of biomethane
Agreement plans for the production of up to 100,000 tonnes of biomethane per year between now and 2030.
CMA CGM Group and Suez, a world leader in circular waste management solutions, signed a memorandum of understanding (MoU) to establish a long-term industrial partnership on biomethane, a renewable fuel produced through waste recovery, to help decarbonise shipping in Europe.
Thie MoU sets out three main areas of collaboration:
*The supply by Suez of up to 100,000 tonnes of biomethane per year by 2030. This biomethane would be used by CMA CGM for its gas-powered ships, thereby contributing to the decarbonisation of maritime transport.
*The creation of a joint investment structure with an initial funding of €100 million for a first stage by 2030 to develop biomethane production facilities. These sites, initially located in Europe, would supply both CMA CGM Group and other players in the sector; and
*Joint research and development initiatives aimed at designing innovative technologies for the production of biofuels, in particular via a hydrothermal gasification process.
CMA CGM Group has set itself the goal of achieving Net Zero Carbon by 2050, says an official release. "Pioneering the use of alternative fuels, the Group has invested $18 billion in orders for 131 vessels capable of using low-carbon energies (biomethane, biomethanol and synthetic fuels), which will be operational by 2028. CMA CGM Group is also working alongside energy providers to develop production facilities and supply chains for these fuels."
Through its circular solutions, Suez has enabled clients to avoid the emission of 6.4 million tonnes of CO2 in 2023, the release added. Suez converts five million tonnes of waste into energy every year, and produced 382 GWh of biomethane in 2023.
“The strategic partnership between CMA CGM and Suez, one of France's leading players in the energy transition, marks a major step forward," says Rodolphe Saadé, Chairman and CEO, CMA CGM Group. "It will enable us to support the biomethane sector dedicated to the shipping industry while accelerating the decarbonisation of CMA CGM Group and guaranteeing our carbon neutrality trajectory by 2050. This project also strengthens our energy independence, a key asset for the sovereignty of France and Europe.”
Sabrina Soussan, Chairman and CEO, Suez adds: “I am delighted to be working with the CMA CGM Group, a key player in maritime transport. Together, we are going to develop circular solutions that will contribute to the decarbonisation of this strategic sector in Europe. This partnership for biomethane production is a further illustration of SUEZ's ambition to turn waste into new resources for the energy transition of the transport sector."
