French energy company Engie announced that it has signed a new framework agreement with multinational shipping and logistics company CMA CGM to develop a biomethane production facility in France to supply renewable fuel to support the decarbonization of CMA CGM’s fleet.
Starting in 2029/2030, the facility is expected to convert livestock waste, household biowaste and agricultural residues into biomethane, which will be supplied to CMA CGM’s fleet through the European gas grid under a certified mass-balance system.
Under the agreement, Engie will lead the project’s development, including technical design and permitting. The company will also as oversee construction and operation of the facility, subject to a final investment decision (FID).
Engie said that the project supports its strategy to expand biomethane production capacity in Europe, with the company targeting 10 TWh of annual capacity by 2035, up from 1.2 TWh currently.
Catherine MacGregor, Chief Executive Officer of Engie, said:
“With the construction of this new facility, we are pursuing our ambition to expand biomethane production capacity in support of the energy transition. This partnership with CMA CGM demonstrates how industrial and energy players can work together to develop concrete solutions to decarbonize hard-to-electrify sectors, while strengthening energy sovereignty and the development of renewable gases.”
CMA CGM has set a goal to reach net zero carbon emissions across its activities by 2050. The company said that it expects to have more than 200 dual-fuel vessels capable of operating on biomethane, biomethanol and e-fuels in its fleet by 2030. According to the companies, biomethane can reduce lifecycle greenhouse gas emissions by at least 67% compared with conventional marine fuels and can be used in CMA CGM’s existing LNG-powered vessels without modifications to engines or fueling infrastructure.
CMA CGM will invest in the project as a minority shareholder alongside Engie through PULSE, its energy investment fund focused on technologies and infrastructure supporting the decarbonization of its transport and logistics activities. The project builds on a partnership established between the companies in 2021 to accelerate the energy transition.
According to the companies, the facility is expected to supply 7,000 tons (equivalent to 100 GWh) of biomethane annually to CMA CGM’s fleet, avoiding an estimated 23,000 tons of CO₂ emissions each year, according to the companies. The facility is also expected to produce 100,000 tons of digestate, a nutrient-rich organic material that can be used as natural fertilizer by local farmers, while 13,000 tons of biogenic CO₂ will be recovered for commercialization.
Rodolphe Saadé, Chairman and Chief Executive Officer of the CMA CGM Group, said:
“As we invest together in biomethane production in France’s largest container port, Le Havre, we are pursuing our long-term vision in securing access to renewable fuels, while contributing to the energy sovereignty of France and Europe. This partnership marks an important milestone in our decarbonization strategy, that will allow us to significantly reduce carbon emissions.”
