Shell Supports New Cargo Owners for Zero Emission

Global energy producer Shell 

Global energy producer Shell has lent its support to the goal expressed by nine users of shipping last week to only use freight services powered by zero-carbon fuels from 2040, but said LNG will play an important role in the energy mix in the meantime.

Last week nine firms including Amazon, IKEA and Unilever set themselves the 2040 target by joining the Cargo Owners for Zero Emission Vessels group organised by the Aspen Institute. The group explicitly rules out using LNG from 2040 as part of its strategy.

“Shell supports the new Cargo Owner for Zero Emission Vessels initiative to decarbonize their supply chains by 2040, and the whole shipping industry by 2050,” Karrie Trauth, senior vice president for shipping and maritime at Shell, wrote in a LinkedIn post on Wednesday.

Shipping to decarbonize by 2050

This is in line with our published commitments.

“We believe that for shipping to decarbonize by 2050, zero carbon hydrogen derived fuel options, whether liquid hydrogen or a hydrogen-based synthetic gas, need to be developed, trialled and scaled.”

But the firm — with a large presence of its own in LNG — also sees a role for gas-powered shipping, both using conventional fossil-based LNG now and lower-carbon versions later, Trauth said.

“It is clear that we must act today, if we are to meet our goals,” she said.

This means using all available lower carbon options now such as LNG and biofuels and over time increasing the proportions of bioLNG and liquid biofuels.

LNG is a fuel in transition

LNG is a fuel in transition and through increasing use of bio and synthetic sources it can also meet net zero ambitions.

“We believe this initiative will provide a strong customer demand signal that will help support the immediate reduction in fuel CO2 intensity (on a well to wake basis) and promote the development of future fuels and associated infrastructure.”