ESG News·3 min read·medium

Engie, CMA CGM to Develop Biomethane Plant in France for Shipping Fleet

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ESG News Editorial Team
Engie, CMA CGM to Develop Biomethane Plant in France for Shipping Fleet
✦AI Summary

Engie and CMA CGM are partnering to build a biomethane plant in France to produce renewable fuel for the shipping industry. The project aims to reduce greenhouse gas emissions by utilizing agricultural and household waste.

Why it matters

This project represents a significant step in decarbonizing the maritime shipping sector using existing LNG infrastructure.

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The project will convert agricultural residues, livestock waste and household biowaste into renewable gas for maritime transport. Production is expected to begin in 2029 or 2030, with annual output reaching 7,000 metric tons, equivalent to 100 gigawatt-hours (GWh).

CMA CGM, the world’s third-largest container shipping company, will become a minority shareholder alongside Engie. The investment will be made through PULSE, its dedicated energy investment fund.

Financial terms of the agreement have not been disclosed.

The development extends a partnership established in 2021, as both companies pursue alternatives to conventional marine fuels.

A central advantage of biomethane is its compatibility with existing liquefied natural gas (LNG) infrastructure.

According to the companies, biomethane can reduce lifecycle greenhouse gas emissions by at least 67% compared with conventional marine fuels. It can also power CMA CGM’s existing LNG-fueled vessels without requiring engine modifications or additional fueling infrastructure.

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