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Leading Danish companies join forces on an ambitious sustainable fuel project

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Leading Danish companies join forces on an ambitious sustainable fuel project. Image: Orsted
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Copenhagen Airports, A.P. Moller – Maersk, DSV Panalpina, DFDS, SAS and Ørsted have brought together the demand and supply side of sustainable fuels in a unique partnership with the concrete vision to develop a new ground-breaking hydrogen and e-fuel production facility as soon as 2023.

When fully scaled-up by 2030, the project could deliver more than 250,000 tonnes of sustainable fuel for buses, trucks, maritime vessels, and airplanes every year. Production would potentially be based on a total electrolyser capacity of 1.3 gigawatts, which would likely make it one of the world’s largest facilities of its kind. The production from the fully scaled facility can reduce annual carbon emissions by 850,000 tonnes.

COWI and BCG act as knowledge partners for the project, and the project is supported by the Municipality of Copenhagen in line with Copenhagen’s ambitious policies for decarbonisation. However, the partnership hopes that the project can, over time, act as a catalyst for similar projects in other parts of Denmark and internationally.

If realised as envisaged, the project will be located in the Greater Copenhagen Area and could supply renewable hydrogen for zero-emission buses tendered by Movia and heavy-duty trucks managed by DSV Panalpina, renewable methanol for A.P. Moller – Maersk vessels and renewable jet fuel (e-kerosene) for SAS airplanes and air transport out of Copenhagen Airports. The project will require a large-scale supply of renewable electricity, which could potentially come from offshore wind power produced at Rønne Banke off the island of Bornholm.

Today, such sustainable fuels come at a higher cost than fossil-based fuels. To become competitive with fossil fuels, the production of sustainable fuels will need to be matured, built at industrial scale, and go through a cost-out journey similar to what has been seen over the past decade in other renewable energy technologies, such as offshore wind, onshore wind and solar PV.

As an example, the cost of offshore wind has declined by approx 70% in Northwest Europe since 2012. For this to happen, governments and industry must come together to create a framework that incentivises private investments in large-scale sustainable fuel production.

Although several partners are challenged by the deep impact of COVID-19, the partnership’s long-term commitments to fighting climate change remain intact. The industrial partners see this project as a way to combine the dual objectives of accelerating the green transformation and providing economic stimulus to the Danish economy post the COVID-19 crisis.

Denmark is in a unique position to become a hub for the production of sustainable fuels, creating jobs and securing a leading position in establishing an entirely new industry, which will be key in driving decarbonisation towards net zero in 2050, not just in Denmark, but also globally.

The electrolyser facility will not only be a potential cornerstone in decarbonising the partners’ businesses but will also deliver a critical contribution to reaching Denmark’s ambitious goal of reducing carbon emissions by 70% by 2030 compared to 1990 by replacing fossil fuels in heavy transport with sustainable fuels. The vision of the partnership is to develop the project in three stages:

The first stage, which could be operational by 2023, comprises a 10MW electrolyser which can produce renewable hydrogen used directly to fuel buses and trucks.

Stage two comprises a 250MW electrolyser facility which could be operational by 2027 when the first offshore wind power from Bornholm could be delivered. This facility would combine the production of renewable hydrogen with sustainable carbon capture from point-sources in the Greater Copenhagen area to produce renewable methanol for maritime transport and renewable jet-fuel (e-kerosene) for the aviation sector.

Stage three, which could be operational by 2030 when the offshore wind potential at Bornholm has been fully developed, would upgrade the project’s electrolyser capacity to 1.3GW and capture more sustainable CO2, enough to supply more than 250,000 tonnes of sustainable fuels to be used in buses, trucks, maritime vessels and airplanes. The project has the potential to displace 5% of fossil fuels at Copenhagen Airport by 2027 and 30% by 2030.

The partnership will now move forward and engage in dialogue with the regulatory authorities on the framework and policies needed to support the development of using sustainable fuels at scale in the transport sector in Denmark, and to seek public co-funding to conduct a full feasibility study of the project. If the feasibility study confirms the viability of the project vision, a final investment decision for the first stage of the project could likely be taken as soon as 2021.

Thomas Woldbye, CEO, CPH Airport, says:

“Whether we operate in road transport, shipping or aviation, we all have a major task to contribute to the sustainable transition in Denmark. The challenge of creating a future-proof and sustainable fuel is common to everyone in the transport sector, and the fact that we are now working together in a partnership is crucial for us to be able to produce sustainable fuel in the necessary quantities. It also supports the ambition to transition Danish aviation to become completely free of carbon emissions in 2050 and make Denmark a pioneer in the development of future climate-friendly fuels.”

Jens Bjørn Andersen, CEO, DSV Panalpina, says:

“This ambitious partnership fits well with our long-term targets to reduce emissions and find sustainable solutions for our industry. We are proud to play a part. The transport sector is very important for Denmark but leaves a significant CO2 footprint and we are committed to finding ways to pave the road for a greener future. While this initiative is local, our long-term ambitions remain global.”

Søren Skou, CEO, A.P. Moller – Maersk, says:

“Decarbonising the transport sector is a significant and complex task that requires collaborative contributions from every company, organisation, and country. This project provides a first step in the massive transformation to produce and distribute sustainable energy.In Denmark, we have an opportunity now to accelerate the green transformation and take lead in powering the future with sustainable energy and I am pleased that we can contribute with concrete actions. We need many such projects both in Denmark and around the globe to achieve our ambition in Maersk of becoming carbon neutral by 2050.”

Torben Carlsen, CEO, DFDS, says:

“The ability to establish a vision of an industrial-scale sustainable fuel production facility is due to the power of partnerships. The cooperation of fuel users and producers along with scientists and society is the fastest way to make sustainable fuels available as realistic alternatives to the fossil fuels we combust in our vehicles and vessels today. I hope that this partnership and our project will help us reach our goal of operating zero-emission ferries and trucks much faster than we had originally anticipated.”

Simon Pauck Hansen, Executive Vice President and COO of Airline Operations, SAS, says:

“The infrastructure aviation enables has a significant contribution to the global society. SAS has very ambitious targets to reduce its climate affecting emissions and one of the key drivers is to use Sustainable Aviation Fuels. We support multiple initiatives and projects in our home market and hope that this project can commercialize and become an accelerator for the transition to decarbonized aviation.”

Henrik Poulsen, CEO, Ørsted, says:

“Decarbonising the road, maritime, and aviation sectors is key to bringing our economies around the world to net-zero emissions by 2050. Our vision to produce sustainable fuels in the Greater Copenhagen area will deliver the necessary industrial scaling to drive the needed cost-out towards making renewable fuels competitive with fossil fuels. With the right policy framework in place, this project could be a defining leap forward for the production of sustainable fuels in Denmark, which will further reinforce Denmark’s role as a global leader in technologies and business models for a sustainable future.”

Frank Jensen, Lord Mayor of Copenhagen, says:

“In Copenhagen, we’ve set the ambitious goal to become the world’s first carbon neutral capital by 2025. We’re already well underway – with district heating, wind turbines, great biking infrastructure, zero emission buses, a green metro, etc. But we need new, sustainable technologies to go all the way. Sustainable fuels are an important means in the fight against climate change and air pollution. It brings us one step closer a greener future.”

Lars-Peter Søbye, CEO, COWI, says:

“This project gives Denmark a unique opportunity to spearhead the green transition in the transportation sector: We get to utilise Danish strongholds in, e.g., wind energy, and join forces in the electricity, district heating and transportation sectors. Cooperating across sectors and fostering partnerships among cities, companies and universities is exactly how we create real value and new sustainable solutions. At COWI, we are excited to take part in the project, contributing our knowledge about high-complexity, large-scale projects and green technologies.”

 

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Air Freight

MSC acquires the majority stake of AlisCargo Airlines

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MSC acquires the majority stake of AlisCargo Airlines. Image: Unsplash
MSC acquires the majority stake of AlisCargo Airlines. Image: Unsplash
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MSC has acquired the majority stake of AlisCargo Airlines, a Milan-based air freight carrier; the parties confirmed that the transaction is a first step towards the acquisition of 100% of AlisCargo Airlines by MSC, expected to happen at the beginning of 2024, once AlisCargo Airlines will restart operations with the delivery of a Boeing 777F. This transaction is yet another step to further developing MSC Air Cargo operations and creates a European gateway and transit point for MSC’s air cargo solutions. Furthermore, the deal complements MSC Air Cargo’s aim to expand its existing trade lane network with better coverage and increased flexibility.

MSC Air Cargo Senior Vice President Jannie Davel stated: “The acquisition of a majority share in AlisCargo Airlines is a step towards expanding MSC’s Air Cargo solution capabilities, and ultimately providing our customers with a quality and consistent offering. I am equally proud that we have found a partner that shares a common vision with us and has built a strong foundation for which we hope to further develop.”

The majority selling party is represented by the Leali Group, led by Mr. Domenico Alcide Leali who, after the success with Air Dolomiti started AlisCargo Airlines in 2019.

Mr. Giacomo Manzon, General Manager of AlisCargo Airlines briefly commented: “I am proud to see a group like MSC entering as a major shareholder of AlisCargo Airlines and developing further the project that Leali Group has initiated. I am thankful for MSC’s trust in us, and we will work hard together to make it a success story.”

MSC Air Cargo has been building up its air cargo offering through numerous strategic partnerships with sales agents and software providers. MSC Air Cargo provides a complementary solution to MSC’s core shipping services and operates two aircraft managed by Atlas Air Worldwide between Europe, Central America and Asia and will add two more in the next 6 months. Following the completion of the operation, MSC Air Cargo will have a new operating license and a fleet of 5 wide-body aircraft within the next 12 months.

Banca Finint acted as financial advisor to Leali Group. Gianni & Origoni acted as legal advisor to MSC and Leali Group, with two separate teams of lawyers from its Milan and Padua offices, respectively.

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cargo.one announced a landmark partnership with Eastern Air Logistics

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cargo.one announced a landmark partnership with Eastern Air Logistics. Image: cargo.one
cargo.one announced a landmark partnership with Eastern Air Logistics. Image: cargo.one
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Eastern Air Logistics and cargo.one announced a landmark partnership to bring extensive capacity from both China Eastern Airlines and China Cargo Airlines to the real-time digital booking platform. The air logistics group will utilize cargo.one’s award-winning seamless digital booking experience, and gain access to its global footprint of many thousands of freight forwarders. cargo.one is already collaborating intensively to help guide and maximize the airline’s sales digitalization journey. On the heels of cargo.one’s recent launch of cargo.one pro, the deal reflects a strategic focus by Eastern Air Logistics to utilize the most modern and globally relevant partners for its digital transformation.

Eastern Air Logistics harnesses the scale of China Cargo Airlines’ dedicated Boeing 777 and 747 freighter fleet as well as belly capacity in nearly 800 China Eastern Airlines passenger aircraft. The carrier offers 184 countries and regions and benefits from state-of-the-art air cargo depot facilities at major Chinese hub airports such as Shanghai, Beijing, Kunming, Xi’an and Wuhan, as well as a nationwide transportation network.

The addition of Eastern Air Logistics capacities into the cargo.one platform means freight forwarders in close to 5000 forwarding offices worldwide will gain the most user-centric instant access to its valuable capacity into China and across Asia Pacific. The connectivity cargo.one delivers as a 24/7 booking platform will help Eastern Air Logistics to grow its international bookings and remain front of mind with freight forwarders in all relevant markets. cargo.one guarantees an unbeatable digital buying journey to every booking customer.

Jonathan Xu, General Manager of Logistics Solutions Business Dept. at Eastern Air Logistics, comments, “Our close collaboration with the cargo.one team over the past months stands out and forcefully boosts our trajectory to become the most innovative integrated logistics service provider. A clear benefit of partnering with cargo.one is the strength of its insights, proactive partnership support and the valuable best practices for digital that we are gaining for our first steps into digital distribution.”

“It is vital that every freight forwarder globally has rapid and seamless access to the best capacity options for China. cargo.one and Eastern Air Logistics compliment each other perfectly in offering end to end agility and a great experience that forwarders can depend upon”, says Moritz Claussen, Founder & Co-CEO of cargo.one. “It is a real pleasure to work alongside Eastern Air Logistics as they leverage our substantial market force, and benefit from the only next generation multilateral marketplace, and one loved by forwarders”.

Both companies enjoy a proven track record of innovation-leading to drive growth in global freight forwarding markets. For example, cargo.one pro now empowers agents to conduct seamless digital agent-to-agent bookings globally in seconds. cargo.one will position Eastern Air Logistics to profit from the surge in digital forwarding in all markets.

Over the past year, cargo.one has rapidly expanded its participation in the Asia Pacific market. Partnering with national carriers and top three airlines in countries including China, Japan and Singapore, cargo.one is the clear partner of choice for airlines in the region to go digital. cargo.one comprises an essential component of an airline’s efficient multichannel sales setup, as well as supporting revenue and capacity management endeavors.

From Summer 2023, freight forwarders can soon book Eastern Air Logistics capacity using the cargo.one marketplace. Customers will enjoy access to important trade lanes between China and hubs including within Europe – Frankfurt, London, Budapest, Amsterdam, in North America – New York, Los Angeles, Toronto, and in Asia Pacific – Singapore, Kuala Lumpur and Ho Chi Minh.

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Silk Way West Airlines joins forces with cargo.one

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Silk Way West Airlines joins forces with cargo.one. Image: cargo.one
Silk Way West Airlines joins forces with cargo.one. Image: cargo.one
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Silk Way West Airlines and cargo.one announced a global partnership to bring the airline’s freighter capacity to the air cargo booking marketplace. By joining customer experience advocate cargo.one, favored by forwarders in all important markets globally, Silk Way West Airlines will expand its digital footprint and align with the highest standards for digital air cargo booking. The airline also gains the market experience and actionable support of cargo.one teams to accelerate digital sales adoption for its capacities.

Headquartered in Baku, at the heart of the Silk Road, Silk Way West Airlines is the largest cargo airline in the Caspian Sea region. The airline carries over 420,000 tonnes of freighter capacity annually, utilizing a fleet of 12 Boeing 747F aircraft with front-loading capabilities. Silk Way West Airlines is progressing an impressive strategy of expansion, in which maximizing its digital distribution to every relevant market plays a vital role.

The strategic location of Baku as a hub helps Silk Way West Airlines to span over 40 key destinations across Europe, the CIS, the Middle East, Central and Eastern Asia, and the Americas. Silk Way West Airlines is unique in building an attractive digital offering for larger shipments, where the market is currently under-served. Freight forwarders have long been attracted to the airline’s connectivity, which cargo.one will now deliver to agents with digital speeds and greater convenience than ever before.

President of Silk Way West Airlines, Wolfgang Meier, comments, “Our partnership with cargo.one is an important milestone in our ambitious digitalization journey. By bringing our capacity to cargo.one’s expansive customer base, we will both broaden our reach and enable many more forwarders to benefit from our services. cargo.one and Silk Way teams are collaborating very closely, and we are relying on their proven expertise to enhance our buying journeys and drive up our share of digital air cargo sales.”

Moritz Claussen, Founder & Co-CEO of cargo.one, adds, “For the many thousands of agents who are thriving with digital bookings on cargo.one, the addition of Silk Way West Airlines’ capacity is fantastic news. Due to its keen awareness of the changing market, Silk Way West Airlines is now putting cargo.one, as the best-in-class digital enabler, at the center of its digital sales growth trajectory.”

cargo.one’s more than 40 airline partners profit from its targeted innovations that enable forwarders in dozens of countries to book more easily and often. Silk Way West partners with cargo.one shortly after the launch of its revolutionary cargo.one pro and cargo.one protect solutions for instant and seamless agent-to-agent bookings. A transformed digital booking experience for all import and export shipments now makes cargo.one the air cargo one-stop-shop for many agents worldwide.

From Autumn 2023, freight forwarders can book Silk Way West Airlines capacity using cargo.one.

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