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CMA CGM and ENGIE to co-invest in second-generation biomethane production project

Both will co-invest in the Salamander project which is aimed to produce 11,000 mt of biomethane annually, starting in 2026, according to the firms.

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CMA CGM

The CMA CGM Group, a global player in sea, land, air and logistics solutions, and ENGIE, a global leader in low-carbon energy and services, on Friday (1 July) announced plans to co-invest in the Salamander project – the first industrial and commercial unit for second-generation biomethane production.

The project will also support both groups’ target to produce up to 200,000 metric tonnes (mt) of renewable gas annually worldwide by 2028, to meet the needs of CMA CGM and the shipping industry.

Majority-owned by ENGIE and the CMA CGM Group, the site is being considered to be located in Le Havre, France; the project is backed by the support of the Havre Seine Métropole urban community via the investment programme “Le Havre, Ville portuaire intelligente” (Le Havre, a smart port city). 

The unit will be fuelled by dry biomass from local wood-waste sources, along with solid recovered fuel, and will produce the biomethane via pyrogasification. 

The site will aim to produce 11,000 mt of biomethane annually, starting in 2026. 

The two groups plan to finalise their investment decision in late 2022. A funding request has been submitted to the European Commission's Innovation Fund. By developing the renewable gas industry and the Salamander project, both CMA CGM and ENGIE will help achieve the energy independence and energy transition goals set forth by the European Commission in the RepowerEU plan.

An objective up to 200,000 tons of renewable gas annually worldwide by 2028

The CMA CGM Group and ENGIE have taken this opportunity to state their intention to increase annual production of renewable gas in Europe and worldwide to 200,000 mt by 2028, both to meet CMA CGM's needs and those of the shipping industry. The Salamander project will help reach that target. 

The CMA CGM Group, which aims to achieve net-zero carbon by 2050, already has a fleet of 30 dual-fuel "e-methane ready” ships in operation – a figure that will rise to 77 by the end of 2026.

The dual-fuel engine technology developed by CMA CGM, which currently runs on LNG, is already capable of using bioLNG, as well as synthetic methane. This fuel reduces greenhouse gas emissions by up to 67% compared with Very Low Sulphur Fuel Oil (VLSFO) from well to wake (the complete value chain). Against this backdrop, CMA CGM and ENGIE are pledging their commitment to promoting the development of the renewable gas sector at an industrial scale. 

Salamander: local renewable energy and a concrete commitment to the Le Havre region

Salamander is the culmination of both groups' desire to promote production and distribution sectors for renewable gas in Europe – particularly in France. It is the application on an industrial scale of 10 years of research and development conducted by ENGIE1 within the framework of the GAYA project, which has demonstrated the technical, economic and environmental viability of producing renewable gas.

The Salamander project also reflects CMA CGM’s close-knit connection with the Le Havre region, where the site is being considered. CMA CGM is the largest local maritime company in terms of market share, operating in the region since 1994. 

Two French groups committed to the Coalition for the Energy of the Future to support sustainable mobility

CMA CGM and ENGIE have also been working together for several months within the Coalition for the Energy of the Future, launched at the end of 2019 during the “Assises de l’Economie de la Mer” by Rodolphe Saadé and supported by President of the French Republic, Emmanuel Macron. The two companies continue to work within the Coalition to ramp up the development of the energies and technologies of the future, to support new models of sustainable mobility and reduce the climate impact of transport and logistics.

Christine Cabau Woehrel, Executive Vice President Assets and Operations at CMA CGM, said: “To reach our target of net-zero carbon by 2050, the CMA CGM Group is seeking to form solid industrial partnerships, led by this initiative with ENGIE that aims to produce up to 200,000 tons of renewable gas annually by 2028. Salamander is the first industrial ramp-up to emerge from the partnership, an advanced pilot helping to develop the renewable gas sector, in keeping with the goals of energy independence and the energy transition set forth by the European Commission in the RepowerEU plan.”

Edouard Sauvage, Executive Vice President Infrastructure at ENGIE, said: “ENGIE is innovating with a new local production method for second-generation biomethane using wood waste, underpinned by an energy production technology involving pyrogasification. The scale of the project reflects our ambitions and accelerated development in renewable gas production. It demonstrates our ability to support leading companies in their transition to net zero. We are delighted and proud to be carrying out this initiative in partnership with CMA CGM, moving forward together in this important milestone in our efforts to promote the energies of the future”.

 

Photo credit: CMA CGM
Published: 4 July, 2022

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Methanol

Kambara Kisen orders methanol dual-fuel bulker from Tsuneishi Shipbuilding

Firm ordered a 65,700-dwt methanol dual-fuel dry bulk carrier with Tsuneishi Shipbuilding; MOL signed a basic agreement on time charter for the newbuilding that is slated to be delivered in 2027.

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Kambara Kisen orders methanol dual-fuel bulker from Tsuneishi Shipbuilding

Japanese shipowner Kambara Kisen has ordered a 65,700-dwt methanol dual-fuel dry bulk carrier newbuilding from Tsuneishi Shipbuilding Co., Ltd, according to Mitsui O.S.K. Lines (MOL) on Wednesday (20 September).

MOL said it signed a basic agreement on time charter for the newbuilding that is slated to be delivered in 2027. 

The vessel will be designed to use e-methanol produced primarily by synthesising recovered CO2 and hydrogen produced using renewable energy sources, and bio-methanol derived from biogas. 

The vessel's design maximises cargo space while ensuring sufficient methanol tank capacity set to allow the required navigational distance assuming various routes, at the same time maximising cargo space. 

MOL added the vessel is expected to serve mainly in the transport of biomass fuels from the east coast of North America to Europe and the U.K. and within the Pacific region, as well as grain from the east coast of South America and the U.S. Gulf Coast to Europe and the Far East.

Details on the time-charter contract:

Shipowner: Kambara Kisen wholly owned subsidiary
Charterer: MOL Drybulk Ltd.
Charter period 2027: -

Details on the newbuilding methanol dual fuel bulk carrier:

LOA: About 200 m
Breadth: About 32.25 m
Draft: About 13.80 m
Deadweight: About 65,700 MT
Hold capacity: About 81,500m3
Shipyard: Tsuneishi Shipbuilding Co., Ltd.

Photo credit: Mitsui O.S.K. Lines
Published: 22 September, 2023

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Methanol

Argus Media: Alternatives may drive methanol market growth

Driven by low-carbon policies and regulations, the transportation sector — especially the marine fuels industry — could be a source of heightened demand, according to Argus.

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RESIZED Argus media

The growth of sustainable alternatives to traditional methanol production sources likely will shape the market over the next several years, industry leaders said this week at the Argus Methanol Forum.

20 September 

Driven by low-carbon policies and regulations, the transportation sector — especially the marine fuels industry — could be a source of heightened demand.

"The aim is to be net zero by 2050 but [those solutions are] expensive today and one of the main challenges to build e-methanol or bio-methanol plants is a huge queue for these pieces of equipment that aren't available," Anita Gajadhar, executive director for Swiss-based methanol producer Proman, said.

Bio-based and e-methanol plants of commercial scale, like Proman's natural gas-fed 1.9 million metric tonne/yr M5000 plant in Trinidad and Tobago, are not ready today.

"But that's not to say 10 years from now they won't be there," Gajadhar added.

Smaller projects are popping up. Dutch fuels and gas supplier OCI Global announced plans last week to double the green methanol capacity at its Beaumont, Texas, facility to 400,000 t/yr and will add e-methanol to production for the first time. Production will use feedstocks such as renewable natural gas (RNG), green hydrogen and biogas.

The globally oversupplied methanol market will not get any major supply additions starting in 2024 until 2027. But that oversupply will not last long, Gajadhar said.

Global demand has slowed this year, driven by stagnate economic growth and higher interest rates, according to industry observers.

As much as half of methanol demand is tied to GDP growth, with total methanol demand estimates at 88.9mn t globally in 2023. This is essentially flat from 2022, but up from 88.3m t in 2021 and 87.7mn t in 2020, Dave McCaskill, vice-president of methanol and derivatives for Argus Media's consulting service, said.

Demand is not expected to rebound to 2019 levels of 89.6mn t until 2024 or 2025, he added.

The period of oversupply combined with lackluster demand places methanol in a transition period, Gajadhar said, which opens the door for sustainable feedstock alternatives to shape market growth.

Danish container shipping giant Maersk and French marine logistics company CMA-CGM announced earlier this week a partnership to drive decarbonization in shipping. The partnership seeks to develop fuel and operations standards for bunkering with alternative fuels. The companies will develop net-zero solutions, including new technology and alternative fuels.

Maersk has previously ordered dual-fuel methanol-powered vessels and CMA-CGM LNG-propelled vessels.

The demand for alternative feedstock-derived fuels is there, but the ability to scale-up such production lags. Certified lower-carbon methanol produced using carbon capture and sequestration — also known as blue methanol— can ramp up much more quickly, according to Gajadhar.

By Steven McGinn

Photo credit and source: Argus Media
Published: 22 September, 2023

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Biofuel

Royal Caribbean completes over 12 weeks of bio bunker fuel testing in Europe

Firm expanded its biofuel testing this summer in Europe to two additional ships — Royal Caribbean International’s “Symphony of the Seas” and Celebrity Cruises’ “Celebrity Apex”.

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Royal Caribbean completes over 12 weeks of bio bunker fuel testing in Europe

Royal Caribbean Group on Tuesday (19 September) said it successfully completed over 12 consecutive weeks of biofuel testing in Europe. 

Royal Caribbean International’s Symphony of the Seas became the first ship in the maritime industry to successfully test and use a biofuel blend in Barcelona to meet part of her fuel needs. 

The company confirmed onboard technical systems met operational standards, without quality or safety concerns, demonstrating the biofuel blend is a reliable “drop in” supply of lower emission energy that ships can use to set sail across Europe and beyond. 

The tests across Europe also provided valuable data to understand the availability and scalability of biofuel in the region, the firm added. 

Jason Liberty, president and CEO, Royal Caribbean Group, said: “This is a pivotal moment for Royal Caribbean Group’s alternative fuel journey.”

“Following our successful trial of biofuels this summer, we are one step closer to bringing our vision for net-zero cruising to life. As we strive to protect and promote the vibrant oceans we sail, we are determined to accelerate innovation and improve how we deliver vacation experiences responsibly.”

President of the Port of Barcelona, Lluís Salvadó, said: “Royal Caribbean’s success is a clear example of how commitment to innovation makes possible the development of solutions to decarbonise the maritime sector.”

“In this case, it involves the cruise sector and focuses on biofuels, an area in which the Port of Barcelona is already working to become an energy hub, producing and supplying zero carbon fuels, such as green hydrogen and ammonia, and of other almost zero-carbon alternative fuels, such as methanol, biofuels or synthetic fuels. Innovation and collaboration between ports and shipping companies is key to accelerate the decarbonisation of maritime transport.”

The company began testing biofuels last year and expanded the trail this summer in Europe to two additional ships — Royal Caribbean International’s Symphony of the Seas and Celebrity Cruises’ Celebrity Apex

The sustainable biofuel blends tested were produced by purifying renewable raw materials like waste oils and fats and combining them with fuel oil to create an alternative fuel that is cleaner and more sustainable. The biofuel blends tested are accredited by International Sustainability and Carbon Certification (ISCC), a globally recognized organization that ensures sustainability of biofuels and verifies reductions of related emissions.

With Symphony of the Seas departing from the Port of Barcelona and Celebrity Apex departing from the Port of Rotterdam, both ships accomplished multiple sailings using biofuel and contributed critical data on the fuel’s capabilities. 

“These results will help accelerate Royal Caribbean Group’s plans to continue testing the use of different types of biofuels on upcoming European sailings this fall. The company is exploring strategic partnerships with suppliers and ports to ensure the availability of biofuel and infrastructures to advance the maritime energy transition,” the firm said. 

Photo credit: Royal Caribbean Group 
Published: 22 September, 2023

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