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Kuehne+Nagel and Aker Clean Hydrogen to Build Green Fuel Supply Chain

green fuel supply chain
(file photo)

Published Feb 11, 2022 7:43 PM by The Maritime Executive

One of the challenges that the shipping industry will face in the transition to alternative fuels is ensuring a consistent supply along global trade routes. Sea logistics provider Kuehne+Nagel and producer of fuels Aker Clean Hydrogen are joining forces to decarbonize the maritime logistics sector. The two companies are working together to target the container shipping industry and expand the offer of green fuels such as hydrogen, ammonia, and methanol.

The companies highlight that the first vessels with engines that can run on the emerging alternative fuels are in production and expected to be in operations on ships by 2024. However, in the early days of such first generation fossil-free engines, the sourcing of these fuels will present a challenge.

Through their new partnership, both companies want to help be an early source in the scale-up of fossil-free shipping. Aker Clean Hydrogen will secure access to green fuels and Kuehne+Nagel will handle the booking of contracts for environmentally friendly containers in cooperation with their carrier partners. The two companies envision the expansion of Kuehne+Nagel's offer of green fuels to meet the emerging needs of the global fleet of containerships.

"This partnership with Aker Clean Hydrogen contributes to our commitment to a low-carbon business model," said Arne Faaberg, Managing Director of Kuehne+Nagel Norway. Together with them and our carrier partners, we will be able to provide certified green container shipment."

Aker Clean Hydrogen and Kuehne+Nagel report that they are already in advanced discussions with containership owners who share the ambition of fossil-free shipping and who want to convert to hydrogen, ammonia, and methanol engines. Through partnerships with these carriers, Kuehne+Nagel will in the future be able to offer the ability to purchase the appropriate amount of green fuels for their cargo via the Mass-Balance-Concept.

"Shipping accounts for approximately three percent of the world's total emissions,” said Knut Nyborg, Chief Executive Officer of Aker Clean Hydrogen. “With Kuehne+Nagel's Mass-Balance-Concept and green fuel from our planned hydrogen, ammonia, and methanol projects around the world, we are well placed in the transition towards a more sustainable future for global shipping."