Investment Earmarked for Biofuels, Biomethane, E-Methane and Carbon-Free Methanol
CMA CGM has launched a US$1.5 billion investment fund designed to speed up the decarbonization of its global shipping and logistics operations.
The five-year Special Fund for Energies will support the production of new fuels and transport solutions across all its businesses, including maritime, land and airfreight shipping, and port and logistics services.
The France-based group is targeting net-zero carbon by 2050.
Among the fund’s goals are the development of industrial-scale production facilities for clean fuels such as biofuels, biomethane, e-methane and carbon-free methanol.
CMA CGM has been using liquified natural gas, or LNG, as a transitional maritime fuel.
A number of projects have already been launched, such as a partnership with power firm Engie to produce 11,000 tonnes per year of biomethane, starting in 2026. The carrier is also developing a biomethane and liquefaction project with Titan to produce up to 100,000 tonnes by 2025, with the possibility of doubling output by 2027.
The energy fund also aims to step up the decarbonization of its 50 port terminals, 700 warehouses and its fleet of trucks, support the development of projects, prototypes and trials and improve the efficiency of its working methods and daily mobility.
“The CMA CGM Group has been acting to protect the environment for many years. It is at the heart of my convictions and of our strategy. However, in the face of the climate emergency it is our duty to do more and accelerate our actions,” said Rodolphe Saadé, CEO of CMA CGM.
“This fund will enable us to make substantial investments in innovative projects to decarbonize our business. We have allocated the resources needed to accelerate our energy transition and that of the entire shipping and logistics industry.”
The fund will begin in October 2022, and will be managed by a team of engineers, energy experts, financial analysts and project managers.
CMA CGM will be exhibiting at this year’s Breakbulk Americas, taking place on 27-29 September at the George R. Brown Convention Centre in Houston, Texas. To register for the conference, click on the link below.
