Hapag-Lloyd and IKEA team up on biofuel use to cut CO2 emissions

German container shipping company Hapag-Lloyd has entered into a cooperation with IKEA Supply Chain Operations to decarbonize the Hapag-Lloyd container shipments originating from Asia, marking an important step towards a more sustainable maritime industry.

From March 2024 to February 2025, both companies have agreed to use Hapag-Lloyd’s “Ship Green 100”, a solution which relies on waste- and residue-based biofuel instead of conventional marine fuel oil.

The expected result for IKEA during this period is a CO2 emission reduction of around 100,000 tonnes.

“IKEA stands as one of our valued customers, known for its unwavering commitment to sustainability. By joining forces, we are reducing CO2e emissions significantly,” Danny Smolders, Managing Director Global Sales at Hapag-Lloyd, commented.

“Ship Green is an important aspect of our decarbonisation journey and brings us one step closer to our goal of net-zero fleet operations by 2045.”

The IKEA goal is to reduce the relative GHG emissions from their product transportation by 70% by 2030 and to only use zero-emission heavy duty vehicles and ocean vessels by 2040.

“It’s through efforts like this one that we can reduce immediate emissions from ocean shipping in the short-term,” Dariusz Mroczek, Category Area Transport Manager, IKEA Supply Chain Operations, said.

“However, biofuel is not the ultimate solution and we need to continue to collaborate to make the necessary shift toward zero emission fuels and technologies.”

This partnership is said to represent a significant step forward in the maritime industry, where collaboration and innovation intersect to create a greener, more sustainable future for global shipping.

Hapag-Lloyd launched a few months ago the Ship Green product to offer its customers emission-reduced ocean transport. In 2023, the carrier significantly increased the amount of bunkered biofuel blend to more than 200,000 tonnes. During the reporting period, 45 vessels belonging to Hapag-Lloyd’s fleet were refueled with biofuel.

In related news, Hapag-Lloyd joined forces with four of the world’s leading shipping lines in December 2023, issuing a statement calling for an end date for fossil fuel-powered newbuilds. The declaration also urges the International Maritime Organisation (IMO) to create regulatory conditions to ensure a successful energy transition and a level playing field for all players in the shipping industry.