French shipping giant CMA CGM has formed a strategic partnership with the U.S.-based renewable natural gas (RNG) provider Vanguard Renewables to support the decarbonization of its shipping activities.
The terms of the agreement entail CMA CGM’s strategic minority investment in Vanguard Renewables through its energy fund PULSE. The move aims to help CMA CGM ensure access to significant volumes of RNG on a long-term basis.
As disclosed, Vanguard Renewables will dedicate up to four projects to the production of RNG to be delivered to CMA CGM.
“We are thrilled to partner with CMA CGM, the third largest container shipping company in the world, in support of their decarbonization objectives. We see this pioneering collaboration as a key step in supporting the maritime sector as the global industry takes a bold step toward improving emissions,” said Michael O’Laughlin , CEO of Vanguard Renewables.
“Vanguard Renewables’ unique business model provides a blueprint for a truly circular solution that offers significant benefits for GHG emission reduction and diverting organic waste from landfills. With a national footprint, backing by BlackRock, and a proven ability to scale to meet the increasing demand of RNG globally, Vanguard Renewables is committed to providing a reliable clean fuel source for years to come.”
CMA CGM’s investment in RNG supplies comes amid tightening regulations in the maritime industry.
The International Maritime Organization’s (IMO) recently announced Net-Zero Framework mandates shipowners to reduce greenhouse gas (GHG) emissions or face financial penalties if they exceed a GHG fuel intensity threshold.
The French company recently also invested in Hycamite TCD Technologies, a Finnish-based cleantech company specializing in low-carbon hydrogen production, and partnered with compatriot energy giant TotalEnergies to develop a 50/50 logistics joint venture dedicated to the implementation and operation of a liquefied natural gas (LNG) bunker supply solution at the Port of Rotterdam, the Netherlands.