Shell and Hapag-Lloyd Signs Multi-Year Agreement to Supply Liquefied Biomethane
Hapag-Lloyd and Shell Western LNG B.V. have signed a multi-year agreement for the supply of liquefied biomethane, starting with immediate effect, announced on September 11, 2025. The agreement builds on a strategic collaboration established in 2023 to accelerate the decarbonization of alternative marine fuels.
Strategic Partnership Details
The multi-year commitment represents a significant step in Hapag-Lloyd's decarbonization journey and end-to-end transformation of the freight value chain. Biomethane, also known as Bio-LNG, plays a significant role in Hapag-Lloyd's decarbonization 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 decarbonize their supply chains.
Since 2024, Shell has expanded its offering to include liquefied biomethane, which is now available at 22 strategic locations within its global LNG bunkering network. The agreement adds to the growing momentum in the adoption of renewable marine fuels.
Fuel Specifications and Certification
The liquefied biomethane 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 liquefied biomethane is then fed into the local gas grid, liquefied, and supplied to ships on a mass-balanced basis.
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Industry Executive Commentary
Jan Christensen, Senior Director Global Fuel Purchasing at Hapag-Lloyd AG, stated: “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's Vice President Global Downstream LNG, added: “Bio-LNG is no longer a concept – it's here, and it's fueling the next chapter of shipping decarbonization. These long-term deals help build the confidence needed to scale renewable fuels.”
Company Background Information
Hapag-Lloyd operates with a fleet of 313 modern container ships and a total transport capacity of 2.5 million TEU, positioning it as 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 maintains 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 continents. In the Terminal & Infrastructure segment, Hapag-Lloyd holds 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.
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.
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