Tanker operator Euronav, which recently announced its intention to acquire fellow Belgian company CMB.Tech, has announced its new diversification and decarbonisation strategy.
The acquisition follows an unsuccessful merger approach by another tanker company, Frontline. According to Euronav CEO Alexander Saverys, Euronav did not support the idea of a large standalone pure play crude oil tanker company, believing that the future lay in diversification with a strong focus on decarbonisation. The proceeds of the sale of the 24 VLCCs will enable purchase of more stock of a reference green shipping company and this will create more value than continuing to be a company dependent 100 % on the transport of crude oil.
Saverys said: “I do not promise only calm seas all along this maritime adventure, but I do guarantee that your captain and crew will do everything in their power to safely steer our armada through the energy transition and fascinating markets with one goal and one goal only : creating value for everyone on board.”
CMB.Tech’s marine division operates Bocimar bulk carries, powered by ammonia. Vessels in the chemical tanker division Bochem too are powered by ammonia, as are the company’s container vessels powered by ammonia. A fourth division, offshore wind supply company Windcat, operates crew transfer vessels and CSOVs. Additionally, CMB.Tech has one tugboat and two ferries. The marine division as a whole concentrates on design, build and operation of ships powered by hydrogen and ammonia, supported business unit H2 Infra.
The merger of the two companies is subject to approval at a General Meeting in February 2024, and aims to create a high-quality tanker platform which will continue to sail under the Euronav brand alongside the current CMB.Tech green ship fleet with over 100 low carbon future-proof vessels. The new company will go under the CMB.Tech name and focus on decarbonisation. It will use, produce, distribute, transport and carry low carbon fuels.
Currently some 60% of the combined fleet, mainly tankers and CTVs are powered by diesel, but new vessels already in the pipeline will be powered by ammonia and hydrogen. CMB.Tech will focus on hydrogen for small ships and ammonia fuel for large ships.
Saverys said: “It’s an integration across the entire value chain in sustainable shipping hydrogen and ammonia. It’s diversified cash flows which allow us to invest throughout the shipping cycles. And we will capitalise on the fleet size and the strategic investments we have in infrastructure. And all in all, it’s the transportation of goods, something we have been doing for a long time but with low carbon solutions. Everybody knows the EU regulations, the Green Deal, the Fit for 55, the EU ETS, the Fuel EU Maritime Directive. But let’s not forget: the rest of the world is there as well. The IMO this summer (2023) has sharpened the CO2 targets for shipping. Many regional initiatives will come. And this is why we believe that in the next five years we could deploy US$ 3bn to 5 bn of investment in future-proof assets: green marine hydrogen assets, green marine ammonia assets.”
