CMA CGM invests in US bio-LNG supplier

French shipping giant CMA CGM is taking a significant step towards sustainability by investing in US-based Vanguard Renewables through its energy fund, PULSE. This strategic minority investment aims to secure long-term access to renewable natural gas (RNG) as part of the company’s commitment to reducing greenhouse gas emissions. Vanguard, known for its innovative anaerobic digesters that convert farm and organic waste into biomethane, will dedicate up to four projects to produce bio-LNG specifically for CMA CGM.

Commitment to Sustainable Shipping

This investment aligns with the International Maritime Organization’s recent net-zero framework, which mandates shipping companies to cut greenhouse gas emissions or face penalties. Vanguard Renewables plays a crucial role in this initiative by collaborating with food and beverage manufacturers to divert organic waste from landfills and transform it into RNG. The company is backed by Global Infrastructure Partners (GIP), a part of BlackRock, which enhances its credibility and operational capacity.

Michael O’Laughlin, CEO of Vanguard Renewables, emphasized the importance of this collaboration, stating, “We see this pioneering collaboration as a key step in supporting the maritime sector as the global industry takes a bold step toward improving emissions.” CMA CGM’s interest in biomethane is not new; the company previously co-invested with ENGIE in the Salamander biomethane project in Le Havre, aiming for industrial-scale production of up to 200,000 tonnes of renewable gas annually by 2028. Additionally, CMA CGM has secured a deal with SUEZ to obtain up to 100,000 tonnes of biomethane per year by 2030, supported by an initial €100 million investment to develop production sites across Europe.

Wärtsilä LNG Fuel Gas Supply Systems continue to be the choice for CMA CGM newbuild vessels

Broader Decarbonization Strategy

On the technological front, CMA CGM has also invested in Hycamite, a Finnish clean-tech firm focused on methane-splitting technology that converts methane into low-carbon hydrogen and solid carbon products. Furthermore, the company has established a 50/50 joint venture with TotalEnergies to launch an LNG bunkering service in Rotterdam. This venture includes plans to commission a 20,000 cubic meter LNG bunker vessel by 2028 and secure up to 360,000 tonnes of LNG annually until 2040.

These initiatives are part of CMA CGM’s comprehensive decarbonization strategy, which has already seen the company order over 100 low-carbon newbuilds. This includes the addition of dual-fuel LNG and bio-LNG-ready ships to its fleet in the coming years, reinforcing its commitment to a greener maritime industry.