Masdar signs pact with logistics giant for supply of green fuels to its vessels

Abu Dhabi clean energy company Masdar and CMA CGM Group have signed a partnership agreement for the long-term supply of green alternative fuels for the global logistics solutions provider’s fleet of vessels.

The agreement aims to source, supply and deliver green alternative fuels for CMA CGM’s dual-fuel vessels in Abu Dhabi, starting in 2025 and as the vessels are phased in incrementally until 2028, Masdar said.

The two companies will discuss extension of collaboration opportunities, potentially on green hydrogen and ammonia production, it said.

“This agreement aligns with our ‘smart-first-mover’ approach to deliver projects with strategic partners in the UAE and across the world,” said Mohammad Al Ramahi, Masdar’s chief green hydrogen officer.

“Our ambition is to be one of the leading players in the development of green hydrogen globally. Global maritime is one of the most strategic markets for green hydrogen and synthetic fuels are one of the fastest, most rewarding market segments.”

The UAE, the Arab world’s second-largest economy, aims to reach hydrogen production of 1.4 million tonnes annually by 2031 and 15 million tonnes by the middle of the century.

The country is planning to develop at least two hydrogen production plants, or oases, by 2031.

CMA CGM Group said it is committed to the energy transition in the shipping industry and aims to achieve net zero by 2050. It plans to record a 30 per cent reduction in total emissions by 2030, compared with its levels in 2008, and an 80 per cent emission reduction by 2040.

“Our goal is to offer reliable shipping services while reducing our environmental impact and actively contributing to a cleaner, more sustainable energy future for the marine industry,” said Christine Cabau Woehrel, CMA CGM’s group executive vice president in charge of assets and operations.

To aid its plan, CMA CGM has been adding low-carbon fuels to its energy mix for a new generation of ships that can use biofuels and e-fuels based on methane and methanol, it said. The company currently has 35 dual-fuel ships and has ordered 84.

Hydrogen, which can be produced from renewable energy and natural gas, is expected to become a critical fuel as economies and industries transition to a low-carbon world.