7 “green” powered container ship orders! CMA CGM is different.

On the path of energy transition in the shipping industry, shipping giant CMA CGM stands out by being the first to order seven biogas-powered medium-sized container ships.

Recently, Rodolphe Saadé, Chairman and CEO of CMA CGM, announced during his visit to the French islands of Martinique and Guadeloupe, the launch of seven medium-sized container ships powered by biogas, including four 7,300 TEU and three 7,900 TEU container ships, to strengthen and modernize CMA CGM's service to the French West Indies.

Each ship in this series is equipped with 1,385 reefer plugs and is expected to be delivered progressively starting in 2024. CMA CGM did not disclose which shipyard will build the latest seven ships, and these ships may also be part of CMA CGM's previous orders.

According to Clarkson data, CMA CGM has orders for nine 7,900 TEU container ships from Hyundai Samho Heavy Industries in South Korea, and ten 7,000 TEU container ships from Samsung Heavy Industries in South Korea. These 11 ships are all equipped with LNG dual-fuel engines that are compatible with biogas or synthetic methane fuel, thus enabling them to operate on biofuel.

CMA CGM stated that the new ships will use biogas fuel produced from biomass, which can reduce carbon dioxide emissions by 67% compared to traditional fuels, and also reduce sulfur oxide emissions by 99%, fine particulate matter emissions by 91%, and nitrogen oxide emissions by 92%, making a significant contribution to improving air quality.

These seven ships will serve Guadeloupe and Martinique, significantly increasing service to these two islands while maintaining the same service standards, reliability, and regularity, replacing smaller vessels dedicated to routes between the French West Indies, France, and Europe. To accommodate these larger vessels, CMA CGM will assist in modernizing the largest shipping ports in Guadeloupe and Martinique, improving throughput capacity and expanding terminal size.

It is understood that biogas, or biogenic gas, is produced by the anaerobic decomposition of organic matter by microorganisms under low-temperature conditions, mainly methane, containing some carbon dioxide and small amounts of nitrogen and other trace gas components. CMA CGM points out that using biogas is a 'pioneering' choice for protecting air quality and supporting energy transition.

CMA CGM is committed to energy transition and has set a goal of achieving net-zero carbon by 2050. As one of the earliest container shipping giants to invest in LNG power, CMA CGM has been developing dual-fuel gas engine technology since 2017. All LNG-powered ships in its fleet are designed as 'e-methane ready', with 31 currently in operation, and this number is expected to increase to 77 by 2026.

In addition to biogas, CMA CGM also reached an agreement with Dalian Shipbuilding Industry Co. (DSIC) earlier this year to order six 15,000 TEU methanol dual-fuel container ships, becoming the second container shipping giant after Maersk to build methanol-powered vessels. CMA CGM previously stated in its Q1 report that the company 'is accelerating its decarbonization trajectory through large-scale investments in LNG and methanol fuels, which will complement each other in the coming years to drive decarbonization in the shipping industry'.

Clarkson's data shows that CMA CGM currently has a total of 57 owned vessels on order. Only the 10 5,500 TEU ships from Qingdao Beihai Shipbuilding use conventional power, while the remaining 47 are all alternative fuel vessels, including six 15,000 TEU class LNG-powered ships from Jiangnan Shipyard, six 13,000 TEU class LNG-powered ships from Hudong-Zhonghua Shipbuilding, nine 7,900 TEU class LNG-powered ships from Hyundai Samho Heavy Industries, ten 7,000 TEU class LNG-powered ships from Samsung Heavy Industries, ten 2,000 TEU class LNG-powered ships from Hyundai Mipo Dockyard, and six 15,000 TEU class methanol-powered ships from DSIC.

Currently, CMA CGM is addressing climate change by using LNG as a transitional fuel, but at the same time, it is also exploring solutions for renewable fuels. In September this year, CMA CGM announced the establishment of a Special Fund for Energies to accelerate the energy transition. The company is expected to provide a budget of 1.5 billion US dollars for this fund over 5 years. The Energy Transition Fund primarily focuses on four key areas, one of which is supporting the development and production of renewable fuels.

In terms of renewable fuel development and production, CMA CGM's Special Fund for Energies has two missions: first, to promote the large-scale production of biofuels, biomethane, green methane, carbon-free methanol, and other alternative fuels; second, to ensure that fuel production can meet CMA CGM's operational needs, and to collaborate with major industrial groups, investment funds, or promising startups that possess technological and professional advantages.