Hapag-Lloyd and Shell Western LNG signed a multi-year agreement for the supply of liquefied biomethane, effective immediately. The contract builds on a strategic collaboration established in 2023 to accelerate the decarbonization of alternative marine fuels.
Biomethane, also known as Bio-LNG, plays a key role in Hapag-Lloyd’s decarbonisation strategy, which aims to achieve net-zero fleet operations by 2045, enabling emissions reductions across all its ships and supporting its customers in their efforts to decarbonise their supply chains.
Since 2024, Shell has expanded its offering to include liquefied biomethane, available at 22 strategic locations across its global LNG bunkering network.
“This agreement helps us ensure the security and reliability of fuel supply we need to continue expanding the use of waste-based renewable fuels across our fleet, reducing emissions without compromising the quality and reliability our customers expect. Collaborations like this show that true leadership in shipping means acting now: using low-emission fuels already available and not waiting for future solutions,” said Jan Christensen, Senior Director Global Fuel Purchasing at Hapag-Lloyd AG.
Dexter Belmar, Shell’s Global Vice President of Downstream LNG, added: “BioLNG is no longer a concept; It’s here and it’s driving the next chapter of shipping decarbonization. These long-term agreements help build the confidence needed to expand the use of renewable fuels.”
The liquefied biomethane supplied to Hapag-Lloyd is EU ISCC certified, ensuring the sustainability of feedstock production, the traceability of sustainable products throughout the supply chain, and reliable and verified reductions in emissions during their life cycle.
It is an immediate replacement fuel that allows the shipping company’s dual-fuel LNG vessels to make a smooth transition to renewable fuels without the need to modify equipment. Biogas, derived from the decomposition of organic waste, such as crop residues, manure and food waste, is transformed into biomethane by removing CO2 and impurities. The liquefied biomethane is then incorporated into the local gas network, liquefied and supplied to ships with a mass balance system.
