Vanguard Renewables announced in a statement on Wednesday a commercial partnership with CMA CGM, designed to support the decarbonization of its shipping activities.
Under the terms of the agreement, CMA CGM will make a strategic minority investment in Vanguard through its energy fund PULSE, ensuring access to “significant” volumes of RNG to be delivered on a long-term basis, according to the US firm.
The company did not provide the pricing details of the agreement.
Vanguard Renewables offers a network of solutions to divert organic waste from landfills and collaborates with food and beverage manufacturers and retailers seeking organic waste disposal options.
Moreover, the company produces RNG through proprietary anerobic digesters that are powered by farm and organic waste.
Vanguard said in the statement that it will dedicate up to four projects to CMA CGM production.
With this option, CMA CGM can access “high-quality, low carbon intensity” RNG produced by Vanguard’s large-scale facilities across the US.
“This partnership highlights the potential of LNG vessels as a transitional solution toward bio-LNG, playing an active role in advancing the decarbonization of the shipping industry,” Vanguard said.
Large LNG dual-fuel fleet
CMA CGM is one of the world’s most prominent backers of LNG as fuel.
By 2029, CMA CGM’s dual-fuel fleet will include at least 162 vessels, including 24 methanol-powered, all designed to run on “low-carbon” fuels such as bio-methane, e-methane, and green methanol.
Most recently, French energy giant TotalEnergies and CMA CGM signed a deal to develop a 50/50 logistics joint venture dedicated to the implementation and operation of an LNG bunkering supply solution at the Dutch port of Rotterdam.
To support CMA CGM’s goal of reaching net zero carbon by 2050 and ensure the supply of its dual-fuel LNG-powered fleet, TotalEnergies will supply CMA CGM with up to 360,000 tons of LNG annually, from 2028 onwards and until 2040.
