SHELL AND HAPAG-LLOYD SIGN LONG-TERM RENEWABLE LBM DEAL

Sep 12, 2025 | Marine fuel & lubricant news

Hapag-Lloyd and Shell Western LNG (Shell) have signed a multi-year agreement for the supply of liquefied biomethane (LBM) starting with immediate effect.

The agreement builds on a strategic collaboration established in 2023 to accelerate the decarbonisation of alternative marine fuels. Biomethane, also known as Bio-LNG, plays a significant role in Hapag-Lloyd’s decarbonisation strategy, which aims to achieve net-zero fleet operations by 2045, by enabling emissions reductions across its fleet and supporting customers in their efforts to decarbonise their supply chains. 

Since 2024, Shell has expanded its offering to include LBM, which is now available at 22 strategic locations within its global LNG bunkering network.

Senior Director Global Fuel Purchasing, Hapag-Lloyd, Jan Christensen, said: “This agreement helps 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.” Dexter Belmar, Shell VP 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 LBM supplied to Hapag-Lloyd is ISCC EU certified, which ensures sustainability of the feedstock production, traceability of sustainable products through the supply chain, and credible, verified reductions of life cycle emissions. 

Biomethane is a drop-in fuel that enables Hapag-Lloyd’s LNG dual-fuel vessels to transition seamlessly to renewable fuels without any equipment modifications. Derived from the decomposition of organic waste – such as crop residues, livestock manure and food waste – biogas is upgraded to biomethane by removing CO₂ and impurities. The LBM is then fed into the local gas grid, liquefied and supplied to ships on a mass-balanced basis. 

Image: ‘Wilhelmshaven Express’ bunkering in Bremerhaven, Germany (source: Hapag Lloyd)

Advertise with Clean Shipping International

Sign up for the Newsletter

Keep up to date with news and events in the industry.

We do not share your information with third parties and you can unsubscribe at any time.