Hapag-Lloyd and IKEA join forces for biofuel integration using mass balance concept

German shipping company Hapag-Lloyd and Swedish retail giant IKEA have forged a partnership to reduce CO2 emissions in ocean shipping.

PHOTO: Hapag Lloyd's container vessel Afif docked in port. Hapag Lloyd

Both companies have agreed to utilise Hapag-Lloyd’s shipping service that uses biofuel blends based on mass balance concept. It will be used for container shipments originating from Asia between March 2024 to February 2025. The move is expected to result in carbon dioxide (CO2) reduction of around 100,000 mt during this period for IKEA, according to Hapag-Lloyd.

Biofuel component used in this service is sourced from waste or residue-based feedstock such as used cooking oil, Hapag-Lloyd said.

“The emissions avoidance results from the use of biofuel instead of conventional marine fuel oil within Hapag-Lloyd’s fleet,” the company said on its website.

“The avoided emissions are allocated to shipments with the so-called ‘book and claim’ approach, meaning that Hapag-Lloyd can attribute avoided CO2e (CO2 equivalent) emissions to all ocean-leg transports regardless of the vessel and route used,” it explained.

The Scandinavian retail giant aims to reduce GHG emissions from its product transportation by 70% by 2030 and to achieve a complete transition to zero-emission heavy-duty vehicles and ocean vessels by 2040 for its product deliveries.

Initiatives like this could help to rapidly reduce ocean shipping emissions, said category area transport manager at IKEA Supply Chain Operations Dariusz Mroczek. “However, biofuel is not the final solution; we must continue collaborating to shift towards zero-emission fuels and technologies,” Mroczek added.

The Zero Emission Maritime Buyers Alliance (ZEMBA), a part of the Cargo Owners for Zero Emission Vessels (coZEV) initiative led by the US-based Aspen Institute, recently selected Hapag-Lloyd as the recipient of its inaugural tender for emission reduction credits. Notable members of ZEMBA include IKEA, Patagonia, and Amazon.

ZEMBA claimed that its next contract for low-emission shipping, scheduled in 2027, will include e-fuels.

By Debarati Bhattacharjee

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