Shell and Hapag-Lloyd collaborate on marine fuel decarbonisation

German carrier Hapag-Lloyd has signed a multi-year agreement with Shell for the supply of liquefied natural gas (LNG) to the line’s ultra-large dual-fuel container vessels of 23 500+ TEUs.

Bunkering for these 12 new vessels is expected to commence during the second half of 2023 and LNG will be supplied in the Port of Rotterdam. The modern ships will be deployed on Europe-Far East routes and call at major ports including Rotterdam, Hamburg, Singapore, and Shanghai.

Using LNG enables Hapag-Lloyd to immediately reduce the CO2 intensity of these vessels by up to 23% compared to conventional fuels. In addition, the use of LNG supports the almost complete reduction of particle emissions. This is another important step for Hapag-Lloyd to reduce emissions and decarbonise its fleet in line with its goal of becoming net-zero carbon by 2045.

Shell is exploring the viability of, and investing in a range of fuels, technologies and solutions that will help decarbonise shipping. This includes the use of LNG, where through an extensive network of 15 LNG bunkering locations in 10 countries globally, the company has already achieved over 1 000 safe ship-to-ship bunkering operations to its marine customers.

In addition to the LNG supply agreement, the two companies have entered into a strategic collaboration agreement intended to accelerate the further decarbonisation of alternative marine fuels. Initial focus will be given to developing the potential of additional low-carbon fuel solutions, including liquefied biomethane and the hydrogen-based fuel liquefied e-methane. Liquefied biomethane as a marine fuel has the potential to reduce greenhouse gas emissions by between 65% and 100%.

This announcement supports Shell and Hapag-Lloyd’s long-standing collaboration, which over the past years included the LNG bunkering of the "Brussels Express", the world’s first large container ship that was converted to gas propulsion.