CMA CGM creates clean energy fund

The Fund will invest in the industrial production of new fuels, as well as low-emission mobility solutions across the Group’s business base (maritime, overland and air freight shipping; port and logistics services; offices).

The CMA CGM Group has already begun to respond to climate change by using LNG as a transitional maritime fuel.

The Fund has been tasked with (a) driving forward the emergence of industrial-scale production facilities for biofuels, biomethane, e-methane, carbon-free methanol, and other alternative fuels, and (b) increasing and securing volumes in line with Group needs, in partnership with other major industrial groups with expertise in these technologies, or with investment funds or promising start-ups.

The Fund follows on from projects that have already been identified and launched:

The Salamander Project will produce 11,000 tonnes of second-generation biomethane per year starting in 2026. As part of the partnership with Engie, its target is to generate 200,000 tonnes of renewable gas per year by 2028, to serve the needs of CMA CGM and the entire shipping industry.

A biomethane production and liquefaction project, developed with Titan, will produce up to 100,000 tonnes by 2025, with the possibility of doubling output by 2027.

As a partner in the Jupiter 1000 project in Fos, in southern France, the CMA CGM Group aims to continue working with the consortium on means to mass-produce low-carbon e-methane for its ships and provide solutions to the challenges of decarbonising gas networks and managing the intermittent nature of certain renewables.

Hydrogen project

In February 2020, the Group joined forces with Energy Observer to make hydrogen one of the energy sources of tomorrow. With the Energy Observer 2 project, the partners have taken a new step forward by working together on a prototype intra-regional container ship fuelled by liquid hydrogen and designed to meet the latest technical and logistical standards.

The Group has also decided to acquire a stake in Neoline, a prototype sail-powered cargo ship set to serve transatlantic routes by the end of 2024.

The CMA CGM Group’s R&D team will continue to optimise the design and propulsion of large container ships to reduce their fuel use, while developing increasingly effective solutions to help make maritime, overland and air freight shipping more energy efficient.

Rodolphe Saadé, Chairman and CEO of the CMA CGM Group, said: “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.

“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.”