Gasum to Supply Hapag-Lloyd with Waste-Based Bio-LNG

2024-09-06

Gasum will bunker Hapag-Lloyd's container vessels with 20,000 mt of bio-LNG in 2025–2026. The energy company Gasum is collaborating with Hapag-Lloyd to supply their container vessels with liquefied biomethane (bio-LNG) during a two-year tender period. Earlier this year, Hapag-Lloyd, one of the world's leading container shipping companies, won the first tender from the Zero Emission Maritime Buyers Alliance (ZEMBA) for ocean shipping based on waste-based bio-LNG that achieves at least a 90 per cent reduction of greenhouse gas emissions.

ZEMBA is a first-of-its-kind buyers' group within the maritime sector. Its mission is to accelerate the commercial deployment of zero-emission (ZE) shipping solutions. ZEMBA is an initiative of Cargo Owners for Zero Emission Vessels (coZEV) and facilitated by the Aspen Institute Energy & Environment Program.

Gasum is supplying Hapag-Lloyd with the required amount of bio-LNG to fulfil the ZEMBA tender requirements. The bio-LNG will be used between Rotterdam and Singapore from 2025 to 2026.

"This agreement demonstrates that the green transition in the maritime transport sector is picking up speed. Gasum is proud to enable this transition by supplying shipping companies with bio-LNG in the Northern European region. We need all hands-on deck to drive the effort, and using bio-LNG to fuel maritime transports is an effective way to reduce emissions today rather than in the distant future," says Jacob Granqvist, VP of Maritime, Gasum. "We are confident in our partnership with Gasum to supply waste-based bio-LNG in line with the strict sustainability requirements of ZEMBA and the Renewable Energy Directive (REDII).

This agreement is a stepping-stone towards our target to be net-zero carbon by 2045," says Jan Christensen, Senior Director of Fuel Purchasing at Hapag-Lloyd. Liquefied biomethane, bio-LNG, is a fully renewable and environmentally friendly fuel with life-cycle greenhouse gas emissions that are, on average, 90% lower than fossil fuel use. Biogas can be used in all the same applications as natural gas, including as a road and maritime transport fuel and as energy for industry. Gasum's biomethane is produced from waste feedstocks such as biowaste, sewage sludge, manure, and other industrial and agricultural side streams. The residual solids and liquids created in the biogas production process are further processed and used as fertilisers in agriculture or raw materials in industrial processes. Gasum is dedicated to procuring more renewable gas to satisfy the increasing demand for sustainable energy. Gasum produces biogas in its 17 biogas plants in Finland and Sweden and has established long-term partnerships with trusted and certified biogas producers throughout Europe. Gasum aims to offer its customers 7 TWh of renewable gas yearly by 2027, including biomethane and e-methane. Achieving this goal would mean a combined reduction of 1.8 million tons of carbon dioxide per year for Gasum's customers. Gasum can provide bio-LNG bunkering services to all shipping companies with vessels running on liquefied natural gas. LNG and bio-LNG are fully interchangeable and can be mixed at any ratio.

Gasum is an expert in the Nordic gas sector and energy market. Gasum offers cleaner energy and energy market expert services for industry, combined heat and power production, and cleaner fuel solutions for road and maritime transport. The company helps its customers reduce their carbon footprint and that of their customers. Together with its partners, Gasum promotes development towards a carbon-neutral future on land and at sea. The Gasum Group has around 340 employees in Finland, Norway, Sweden, and Germany. The company's revenue totalled EUR 1,457 million in 2023. The State of Finland owns Gasum.