HMM to collaborate with SIPG on clean marine fuel supply

South Korean shipping company HMM and Shanghai International Port Group (SIPG), the exclusive operator of all the public terminals in China’s Port of Shanghai, have inked a memorandum of understanding (MoU) to collaborate on clean marine fuel supply, specifically focused on bunkering methanol and LNG at Shanghai port.

Courtesy of HMM

The MoU, signed on March 27, also covers supporting carbon reduction goals, promoting global shipping new energy cooperation, and helping energy transformation and sustainable development in the shipping industry.

For HMM, establishing port bunkering infrastructure for clean marine fuel is critical in achieving its net-zero emissions target for the entire business by 2050.

As part of this endeavor, the shipping company aims to develop sustainable eco supply chain networks at Shangai port and other key ports such as Singapore and Busan. According to SIPG, all preparations for green methanol bunkering in Shanghai Port have been completed.

In 2023, HMM placed a $1.12 billion order at Hyundai Samho Heavy Industries (HSHI) and HJ Shipbuilding and Construction (HJSC) shipyards for nine 9,000 TEU containerships powered by methanol. Additionally, the Korean company plans to operate two 7,700 TEU LNG-powered vessels by the end of this year.

Related Article

In January this year, HMM also took delivery of the first of twelve new LNG-ready 13,000 TEU containerships.

“Through this cooperation with SIPG, we have expanded our green fuel supply chain in China, following Korea and Singapore. We will continue to strive for various efforts to find a way to go green,” said an HMM official.

Recently, HMM was recognized for its sustainable practices and corporate transparency on climate change by the international environmental non-profit CDP, securing an ‘A-’ score.

When it comes to SIPG, it is worth noting that the terminal operator put into service China’s inaugural methanol bunkering ship, Hai Gang Zhi Yuan, and concluded a methanol supply agreement with  Taiwanese container shipping company Evergreen Marine at the beginning of 2024.

Related Article