CMA CGM creates a 1.5 billion dollar fund to accelerate the decarbonization of the group
The CMA CGM Group is creating a “Special Energy Fund”, backed by a commitment of $1.5 billion over five years, intended to accelerate its energy transition and reach net zero by 2050. The mission of the fund is both to invest in projects to secure the supply of renewable energies for all of the group’s businesses and to work with other companies and researchers in search of solutions to the challenges of decarbonization.
The fund, which will have a dedicated management team for its launch in October 2022, will focus on the industrial production of new fuels, as well as low-emission mobility solutions in the maritime, land and air transport activities of the world. Group, as well as its port and logistics services and the offices of CMA CGM. In announcing the new initiative, they focused on producing renewable fuels, accelerating the decarbonization of the group’s onshore operations, supporting new projects, developing a management plan for the offices of the group and employee participation in efforts such as working from home and changing commuting habits.
“This fund will allow us to make substantial investments in innovative projects to decarbonize our activity,” said Rodolphe Saadé, Chairman and CEO of the CMA CGM Group. “We have allocated the necessary resources to accelerate our energy transition and that of the entire transport and logistics industry.”
While the group has already taken steps to adopt LNG-powered ships and support alternative fuel production projects, the fund is responsible for fostering the emergence of industrial-scale production facilities for biofuels, the biomethane, e-methane, decarbonated methanol and other alternative fuels and ensure that there will be sufficient volume to meet the needs of the group.
CMA CGM stressed that the fund’s efforts will build on its involvement in the Salamander project which aims to produce 11,000 tonnes of biomethane per year from 2026. A partnership with Engie aims to generate 200,000 tonnes of renewable gas per year by 2028 for CMA CGM and the maritime industry, while a biomethane production and liquefaction project with Titan will produce up to 100,000 tonnes by 2025, with the possibility of doubling production by 2027 CMA CGM is also participating in the Jupiter 1000 project in Fos, France, which aims to massively produce carbon-free e-methane and provide answers to the challenges of decarbonizing gas networks and controlling the intermittency of certain renewable energies.
In addition to the maritime fleet, the fund will also seek to accelerate the decarbonization of port terminals, warehouses and truck fleets operated by CMA CGM. Efforts include wind, solar, biomass and hydrogen-powered solutions. A transition plan will be developed for the trucking fleet with a focus on electrification.
The fund will also expand the group’s work with research and development projects. They cited their current involvement in the Energy Observer 2, which is working on a prototype intra-regional container ship powered by liquid hydrogen, as well as their decision to acquire a stake in Neoline, a prototype freighter at sail intended to serve transatlantic transport. routes by the end of 2024. CMA CGM said it is also supporting SeaOrbiter, a prototype marine research vessel and floating oceanographic laboratory designed by French architect Jacques Rougerie that explores pathways for the emerging blue economy . The CMA CGM Group’s R&D team will continue to optimize the design and propulsion of large container ships in order to reduce their fuel consumption while developing ever more efficient solutions to make sea, land and air freight transport more economical. in energy.