Hapag-Lloyd and Shell sign multi-year liquefied biomethane deal

Hapag-Lloyd and Shell strengthen collaboration with new agreement in marine liquefied biomethane.

• Agreement supports Hapag-Lloyd’s decarbonisation journey and end-to-end freight value chain transformation
• The multi-year commitment adds to the growing momentum in renewable marine fuel adoption

Hapag-Lloyd and Shell Western LNG B.V. (Shell) have signed a multi-year agreement for the supply of liquefied biomethane with the global shipping company, starting with immediate effect.

The agreement builds on a strategic collaboration established in 2023 to accelerate the decarbonisation of alternative marine fuels.

Liquefied biomethane plays an important role in Hapag-Lloyd’s decarbonisation strategy, enabling emissions reductions across its fleet and supporting its customers in decarbonising their supply chains.

Since 2024, Shell has expanded its offering to include liquefied biomethane, now supplied across 22 strategic locations within its global LNG bunkering network – the largest of its kind worldwide.

“This agreement helps to secure the fuel certainty and supply reliability we need to further expand the use of waste-based renewable fuels across our fleet – cutting emissions without compromising the quality and reliability our customers expect. 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,” said Jan Christensen, Global Fuel Purchasing, Hapag-Lloyd AG.

Dexter Belmar, Shell’s Vice President Global Downstream LNG, added: “Bio-LNG is no longer a concept - it’s here, and it’s fuelling the next chapter of shipping decarbonisation. These long-term deals help build the confidence needed to scale renewable fuels.”

The liquefied biomethane supplied to Hapag-Lloyd is ISCC EU certified, which confirms the sustainability of the feedstock, traceability of renewable fuel through the supply chain as well as credible, verified reductions of lifecycle emissions meet regulatory requirements.

Liquefied biomethane, enables LNG dual-fuel vessels to transition to renewable fuels without any equipment modifications. Derived from the decomposition of organic waste, such as crop residues, manure and food waste, biogas is upgraded to biomethane by removing CO₂ and impurities. Biomethane is then injected into the local gas grid, liquefied, and supplied to ships on a mass-balanced basis. Depending on feedstock and regulations, liquefied biomethane has a 33 to 204%¹ GHG reduction potential compared to Very Low Sulphur Fuel Oil.

¹ _{Compared to Very Low Sulphur Fuel Oil (VLSFO), the differences in greenhouse gas (GHG) reductions on a well-to-wake basis for each fuel are due to variations in the materials used, how the fuel is made, and how emissions are measured. Bio-LNG can achieve one of the lowest or even negative CO₂e emissions intensity values on a life cycle basis when manure is used as a feedstock, when considering all emissions associated with the production and use of the fuel, including avoided emissions, recognised in EU REDII methodologies.}

About Hapag-Lloyd

With a fleet of 313 modern container ships and a total transport capacity of 2.5 million TEU, Hapag-Lloyd is one of the world’s leading liner shipping companies. In the Liner Shipping segment, the Company has around 14,000 employees and 400 offices in 140 countries. Hapag-Lloyd has a container capacity of 3.7 million TEU – including one of the largest and most modern fleets of reefer containers. A total of 133 liner services worldwide ensure fast and reliable connections between more than 600 ports on all the continents. In the Terminal & Infrastructure segment, Hapag-Lloyd has equity stakes in 21 terminals in Europe, Latin America, the United States, India and North Africa. Around 3,000 employees are assigned to the Terminal & Infrastructure segment and provide complementary logistics services at selected locations in addition to the terminal activities.

About Shell

Shell plc is incorporated in England and Wales, has its headquarters in London and is listed on the London, Amsterdam, and New York stock exchanges. Shell companies have operations in more than 70 countries and territories with businesses including oil and gas exploration and production; production and marketing of liquefied natural gas and gas to liquids; manufacturing, marketing and shipping of oil products and chemicals and renewable energy projects. For further information, visit www.shell.com.

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