CMA CGM Group, Suez sign agreement to develop biomethane production in Europe

CMA CGM Group, a global player in maritime, land, air and logistics solutions, and waste-management company Suez signed a memorandum of understanding (MOU) Oct. 18 to establish a long-term industrial partnership on biomethane, a renewable fuel produced through waste recovery, to help decarbonize shipping in Europe.

This MOU sets out three main areas of collaboration:

The supply by Suez of up to 100,000 metric tons of biomethane per year by 2030. This biomethane would be used by CMA CGM Group for its gas-powered ships, thereby contributing to the decarbonization of maritime transport.

The creation of a joint-investment structure with an initial funding of 100 million euros (USD$107.7 million) by 2030 to develop biomethane production facilities. These sites, initially located in Europe, would supply both CMA CGM Group and other players in the sector.

Joint research-and-development (R&D) initiatives aimed at designing innovative technologies for the production of biofuels, in particular via a hydrothermal gasification process.

CMA CGM Group, engaged in the energy transition of shipping and logistics, has set itself the goal of achieving net-zero carbon by 2050.

Pioneering the use of alternative fuels, the group has invested $18 billion in orders for 131 vessels capable of using low-carbon energies (biomethane, biomethanol and synthetic fuels), which will be operational by 2028.

CMA CGM Group is also working alongside energy providers to develop production facilities and supply chains for these fuels.

Suez has extensive expertise in the production of local and sustainable energy and secondary raw materials from waste to support the decarbonization of local authorities and industrial customers.

Through its circular solutions, Suez enabled its clients to avoid the emission of 6.4 million tons of CO2 in 2023.

In particular, the group converts 5 million tons of waste into energy every year and produced 382 gigawatt-hours of biomethane in 2023.

“The strategic partnership between CMA CGM and Suez, one of France’s leading players in the energy transition, marks a major step forward,” said Rodolphe Saadé, the chairman and CEO of CMA CGM Group. “It will enable us to support the biomethane sector dedicated to the shipping industry while accelerating the decarbonization of CMA CGM Group and guaranteeing our carbon-neutrality trajectory by 2050. This project also strengthens our energy independence, a key asset for the sovereignty of France and Europe.”

Sabrina Soussan, the chairman and CEO of Suez, added, “I am delighted to be working with the CMA CGM Group, a key player in maritime transport. Together, we are going to develop circular solutions that will contribute to the decarbonization of this strategic sector in Europe. This partnership for biomethane production is a further illustration of Suez’s ambition to turn waste into new resources for the energy transition of the transport sector.”