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

Hapag-Lloyd and Shell Western LNG BV (Shell) have signed a multi-year agreement for the supply of liquefied biomethane 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 bioLNG, 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 liquefied biomethane, which is now available at 22 strategic locations within its global LNG bunkering network.

“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-emissions fuels already available today and not waiting for future solutions,” said Hapag-Lloyd senior director, global fuel purchasing, Jan Christensen.

Shell vice president global downstream LNG, Dexter Belmar added, “BioLNG 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 ensures sustainability of the feedstock production, traceability of sustainable products through the supply chain, and credible, verified reductions of lifecycle emissions. 

Hapag-Lloyd explained in a statement, “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.”