Shell and Hapag-Lloyd Sign Multi-Year Liquefied Biomethane Deal

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Shell Hapag-Lloyd Multi-Year Liquefied Biomethane Deal

Agreement Supports Hapag-Lloyd’s Fleet Decarbonization Goal of Net-Zero by 2045

Hapag-Lloyd and Shell Western LNG B.V. (Shell) have signed a multi-year agreement for the supply of liquefied biomethane (Bio-LNG), effective immediately. This commitment builds on a strategic collaboration established in 2023 to accelerate the adoption of alternative marine fuels and is central to Hapag-Lloyd’s decarbonization strategy, which aims for net-zero fleet operations by 2045.

The agreement provides Hapag-Lloyd with the fuel certainty and supply reliability necessary to expand the use of waste-based renewable fuels across its fleet. Biomethane is considered a significant part of Hapag-Lloyd’s strategy to cut emissions and support customers in decarbonizing their supply chains. The fuel is a drop-in fuel, which allows the carrier’s existing LNG dual-fuel vessels to transition seamlessly without requiring any equipment modifications.

The liquefied biomethane supplied is ISCC EU certified, ensuring the sustainability of the feedstock production, full traceability throughout the supply chain, and verified reductions of life cycle emissions. The biomethane itself is derived from biogas, which is produced from the decomposition of organic waste, such as food waste, crop residues, and livestock manure. This biogas is then upgraded, liquefied, and supplied to ships on a mass-balanced basis. Since 2024, Shell has been offering liquefied biomethane, which is now available at 22 strategic locations within its global LNG bunkering network.

Jan Christensen, Senior Director Global Fuel Purchasing at Hapag-Lloyd AG, stated that collaborations like this demonstrate that “true leadership in shipping means acting now – using lower-emission fuels already available today and not waiting for future solutions.” Dexter Belmar, Shell’s Vice President Global Downstream LNG, reinforced that Bio-LNG “is fueling the next chapter of shipping decarbonization,” and emphasized that long-term deals such as this help build the confidence required to scale renewable fuels.

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Ryan Finn
Ryan is the Digital Marketing and Content Creation Manager for Trade and Logistics Siam Ltd. He provides a creative flair to the team and his resourcefulness helps to bring an imaginative improvement to both literary archetypes and online content production. A writer by day and a rider by night, when he's not composing the latest logistics news update or creating compelling copy for our clients, Ryan spends his free time travelling Thailand by motorbike.