Press releases

Maersk join forces with industry peers and customers to develop LEO

29 October 2019
LEO fuel

A.P. Moller - Maersk alongside with Wallenius Wilhelmsen, BMW Group, H&M Group, Levi Strauss & Co. and, Marks & Spencer to explore LEO - a blend of lignin and ethanol - that could be part of the future solution for sustainable shipping.

From the phone, tablet or computer you are reading this on, to the fruit you eat, the trousers you wear or the car you drive, around 80% of the goods you use every day are delivered to you by sea.

Shipping accounts for 2-3% of global CO2 emissions, a proportion that is set to increase as global trade continues to grow at a sluggish but steady pace. As such, this industry has an urgent need to reduce its environmental impact.

Maersk and Wallenius Wilhelmsen have teamed up with Copenhagen University and major customers including BMW Group, H&M Group, Levi Strauss & Co. and Marks & Spencer to form the LEO Coalition, which will explore the environmental and commercial viability of LEO fuel for shipping.

The marine sector has very different fuel requirements than automotive or aviation. “Shipping requires bespoke low-carbon fuel solutions which can make the leap from the laboratory to the global shipping fleet. Initiatives such as the LEO Coalition are an important catalyst in this process,” explains Søren Toft, Maersk Chief Operating Officer.

Lignin is a structural bio-polymer which contributes to the rigidity of plants. Lignin is isolated in large quantities as a byproduct of lignocellulosic ethanol and pulp and paper mills. Currently, it is often incinerated to produce steam and electricity.

“Our customers’ ambitions on sustainability are increasing rapidly, and we applaud this development. Clearly, LEO would be a great step forward for supply chain sustainability, and it has the potential to be a viable solution for today’s fleet, and not just a future vision,” says Craig Jasienski, Wallenius Wilhelmsen Chief Executive Officer.

Leading companies in many sectors are actively exploring solutions to reduce emissions along their entire value chains, as part of the global recognition of the importance of sustainably meeting the world’s demand for goods. This very much includes the transportation and logistics sector which delivers those goods.

Sea transport logistics plays an important role for the BMW Group´s vehicle production and distribution processes all over the world. As the company fosters sustainability along the entire value chain the participation at the LEO project is a valuable commitment.

Helena Helmersson, Chief Operating Officer at H&M Group states that “climate change is an ongoing reality and a key challenge to all industries, including fashion. We are aware of our responsibility to stay within the planetary boundaries and are committed to reduce our impact in every aspect of our value chain, including how our products are shipped to consumers around the world. This coalition gives us the opportunity to explore the development of a low-carbon fuel for shipping today.”                                                                 

Copenhagen University is currently running the laboratory-scale development of this potential marine fuel. The project aims to move into phase II – testing the fuel on actual vessel engines – in the second quarter of 2020. Following a successful phase II, phase III will begin – the scaling up of LEO fuel production. 

Contact Details Concepción Boo Arias, concepcionboo.arias@maersk.com +45 24495026

About Maersk

A.P. Moller - Maersk is an integrated container logistics company working to connect and simplify its customers’ supply chains. As the global leader in shipping services, the company operates in 130 countries and employs roughly 76,000 people.

About Wallenius Wilhelmsen

Wallenius Wilhelmsen ASA (OEX: WALWIL) is a market leader in RoRo shipping and vehicle logistics. Headquartered in Norway, the group consists of Wallenius Wilhelmsen Ocean, Wallenius Wilhelmsen Solutions, EUKOR and ARC.
Read more at walleniuswilhelmsen.com

Contact Details Roger Strevens, Head of Sustainability roger.strevens@walleniuswilhelmsen.com +47 41043864

About H&M Group

Hennes & Mauritz AB (publ) was founded in Sweden in 1947 and is quoted on Nasdaq Stockholm. H&M’s business idea is to offer fashion and quality at the best price in a sustainable way. In addition to H&M, the group includes the brands COS, Monki, Weekday, & Other Stories, H&M HOME and ARKET as well as Afound. The H&M group has 50 online markets and more than 4,900 stores in 73 markets including franchise markets. In 2018, net sales were SEK 210 billion. The number of employees amounts to approximately 177,000. For further information, visit https://hmgroup.com/

Contact Details groupmediarelations@hm.com Phone +46 8 796 53 00

About Levi Strauss & Co. Levi Strauss & Co. is one of the world's largest brand-name apparel companies and a global leader in jeans wear. The company designs and markets jeans, casual wear and related accessories for men, women and children under the Levi's®, Dockers®, Signature by Levi Strauss & Co.™ and Denizen® brands. Its products are sold in more than 110 countries worldwide through a combination of chain retailers, department stores, online sites, and a global footprint of approximately 3,000 retail stores and shop-in-shops. Levi Strauss & Co.'s reported fiscal 2018 net revenues were $5.6 billion. For more information, go to http://levistrauss.com.

Contact Details newsmediarequests@levi.com Phone (415) 501-7777

About M&S

We operate a family of accountable businesses, including Food and Clothing & Home, using the M&S own-brand model, focused on delivering quality products at great value for money. Although primarily based in the UK, we sell into 57 countries from 1,487 stores, and 35 websites around the world. We employ over 80,000 colleagues serving about 32 million customers. We are committed to transforming our business to ensure that once again M&S can fulfil the potential of its brand and deliver long-term, sustainable, profitable growth for our investors, colleagues and the communities that we serve.

Contact Details Press Line +44 208 718 1919

Anything you need, we’re here to help

Solutions

Solutions

We meet customer needs from one end of the supply chain to the other.
Contact us

Contact us

Our dedicated team of experts are here for you.
Find Prices

Ready to ship?

Look up rates for new shipments and inland tariffs.

Sign up to our newsletter

Sign up to receive weekly updates from Maersk on rates and information relevant to your business.