New world leader in green shipping | Maritime giant plans to add 60 hydrogen vessels and 60 ammonia ships

Euronav, the largest independent oil tanker company globally, is set to acquire and expand the sustainable shipping firm CMB.Tech, marking a significant step toward becoming the foremost leader in clean shipping. Following the $1.15 billion acquisition, Euronav plans to integrate 120 zero-carbon vessels into its fleet, comprising 60 small compressed-hydrogen-powered ships and 60 larger vessels powered by ammonia, all equipped with combustion engines.

Alexander Saverys, serving as the CEO of both Euronav and CMB.Tech, speaking at Euronav's capital markets day in Antwerp, Belgium, Saverys expressed the goal of establishing CMB.Tech as the benchmark in sustainable shipping, emphasizing value creation through a diversified fleet and a strong commitment to decarbonization. The company aims to engage in the entire lifecycle of low-carbon fuels, encompassing production, distribution, and eventually transportation.

The impending merger, subject to shareholder approval, will unite the two Belgian companies, which already operate a fleet of five ammonia-powered and nine hydrogen ships, with additional orders for 12 hydrogen boats and 34 ammonia vessels. The combined company plans to expand its fleet with 20 ammonia-powered bulk carriers, 20 container ships, ten tankers, ten chemical carriers, 20 hydrogen-powered crew transfer vessels, 20 tugs, ten service operation vessels for offshore wind farms, and ten mini-bulkers.

Despite its continued involvement in transporting crude oil, the merged firm aspires to become the world's largest zero-carbon shipping operator, boasting a fleet of 99 ammonia vessels and 83 hydrogen ships. The anticipated investment in low-carbon assets and green fuel over the next five years is estimated to range from $3 billion to $5 billion. Notably, all the new vessels will be designed as dual-fuel, capable of running on both green fuels and traditional diesel.

Euronav's recent sale of 24 Very Large Crude Carriers for $2.35 billion to Frontline will contribute to funding the acquisition and investment in the new merged firm. CMB.Tech, currently owned by CMB, a Belgian shipping company privately held by the Saverys family, operates with 49% ownership of Euronav, a factor reflected in the shared CEO leadership.

A shareholder vote on the proposed merger plan for Euronav is scheduled for February 7th. Alexander Saverys, in urging investors to consider the value proposition of holding a stock in a reference green shipping company, emphasizes the transition toward zero-carbon shipping as a compelling destination for those seeking sustainable investments.