Masdar signs agreement with CMA CGM for supply of green alternative fuels

Partnership aims to supply green hydrogen to CMA CGM’s dual-fuel vessels

Masdar is working on an annual green hydrogen production capacity of up to one million tonnes by 2030. Chris Whiteoak / The National

Abu Dhabi clean energy company Masdar and CMA CGM Group have signed a partnership agreement for the long-term supply of green alternative fuels for the global logistics solutions provider's fleet of vessels.

The agreement aims to source, supply and deliver green alternative fuels for CMA CGM’s dual-fuel vessels in Abu Dhabi, starting in 2025 and as the vessels are phased in incrementally until 2028, Masdar said in a statement on Tuesday.

Masdar and CMA CGM will continue to discuss extending their collaboration opportunities, potentially on green hydrogen and ammonia production, it said.

“This agreement aligns with our 'smart-first-mover' approach to deliver projects with strategic partners in the UAE and across the world,” said Mohammad El Ramahi, Masdar's chief green hydrogen officer.

“Our ambition is to be one of the leading players in the development of green hydrogen globally. It is our belief that global maritime is one of the most strategic markets for green hydrogen and synthetic fuels are one of the fastest, most rewarding market segments."

The UAE, the Arab world’s second-largest economy, aims to reach hydrogen production of 1.4 million tonnes annually by 2031. The target is then to reach 15 million tonnes of annual production by 2050.

The country is planning to develop at least two hydrogen production plants, or oases, by 2031.

Masdar is working towards a renewable energy portfolio capacity of at least 100 gigawatts by 2030 and an annual green hydrogen production capacity of up to one million tonnes by the same year.

“Our goal is to offer reliable shipping services while reducing our environmental impact and actively contributing to a cleaner, more sustainable energy future for the marine industry,” said Christine Cabau Woehrel, CMA CGM's group executive vice president in charge of assets and operations.

Mohammad El Ramahi, Masdar chief green hydrogen officer and Christine Cabau Woehrel, CMA CGM group executive vice president in charge of assets and operations. Photo: Masdar and CMA CGM

CMA CGM Group said it is committed to the energy transition in the shipping industry and aims to achieve net zero by 2050. It plans to record a 30 per cent reduction in total emissions by 2030, compared with its levels in 2008, and an 80 per cent emission reduction by 2040.

To aid its plan, CMA CGM has been adding low-carbon fuels to its energy mix for a new generation of ships that can use biofuels and e-fuels based on methane and methanol, it said. The company currently has 35 duel-fuel ships and has ordered 84.

Masdar aims to produce one million tonnes of green hydrogen by 2030. The global liquid hydrogen market is estimated to reach $66.3 billion by 2032, from $39 billion in 2022, according to Allied Market Research.

Hydrogen, which can be produced from renewable energy and natural gas, is expected to become a critical fuel as economies and industries transition to a low-carbon world.

It comes in various forms, including blue, green and grey. Blue and grey hydrogen are produced from natural gas, while green hydrogen is derived from splitting water molecules through electrolysis.