Zero Emissions Alliance Reveals First Tender Winner

Zero Emissions Alliance Reveals First Tender Winner

An alliance of cargo owners - the Zero Emission Maritime Buyers Alliance (ZEMBA) - has revealed the winner of its first ever tender. Hapag-Lloyd has been selected to provide a two-year contract to ship goods from a variety of household name retailers. 

The two-year contract will see Hapag-Lloyd ship goods on voyages that achieve ‘at least a 90% reduction of greenhouse gases on a lifecycle basis relative to fossil fuel powered’ voyages. 

ZEMBA members that are involved in the deal include Amazon, Patagonia, Brooks Running, Meta, New Balance, Nike and more. Collectively, under the terms of the tender, they have committed to purchasing over one billion twenty-foot shipping container-miles of zero-emission shipping on a route from Singapore to Rotterdam, Netherlands in 2025-2026.

It has been estimated that the agreement will allow the cargo owners to collectively avoid approximately 82,000 metric tonnes of CO2 emissions. These savings will be achieved through Hapag-Lloyd’s independently certified waste-based biomethane service.

Commenting on the award of ZEMBA’s inaugural tender, Ingrid Irigoyen, the organisation’s President and CEO, said: 

“Climate-leading customers of the maritime shipping sector are stepping up in support of zero-emission shipping and the supply chain is responding. As we embark on this partnership, we commend Hapag-Lloyd’s transparency, collaborative spirit, and willingness to innovate with ZEMBA on this inaugural tender. 

Our collective procurement approach is working, and we look forward to continuing to push the boundaries of what’s technically and economically feasible in subsequent tenders, with a strong focus on maritime e-fuels. Through this first set of deals, ZEMBA members are reducing emissions in the near term, which is critical. We are also strongly urging suppliers of maritime e-fuels and other zero and near-zero emission propulsion alternatives to accelerate their market readiness in preparation for our next tender”.

It is expected that the results from ZEMBA’s first tender process will be used to inform future maritime decarbonisation projects. As per a statement from ZEMBA: 

‘In the coming months, the Aspen Institute, which serves as secretariat for ZEMBA, will work with cargo owners to convey lessons learned from ZEMBA’s tender process to support the International Maritime Organisation’s development of robust life cycle assessment guidelines and mid-term measures that are credible, transparent, verifiable, and create a level playing field for climate leaders across the value chain’.

The tender was designed in collaboration with several partners. These include the Lloyd’s Register Maritime Decarbonisation Hub, and Neoteric Energy and Climate LLC. 

Speaking on behalf of Hapag Lloyd, Rolf Habben Jansen, the company’s CEO, welcomed the tender win, saying: 

“We are proud to have been selected by ZEMBA for this important zero-emission shipping initiative and to be able to provide immediate emission reductions to ZEMBA members. To reach our goal of net-zero ship operations by 2045, we need partners like ZEMBA to support us on our decarbonisation journey and push the boundaries of what’s possible. By offering our service, we aim to reduce greenhouse gas emission significantly and contribute to a greener future for global shipping”.

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Author
Anthony York
Date
11/06/2024
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