Pillsbury Advises The Aspen Institute, ZEMBA on Pioneering E-Fuel Initiative in Maritime Shipping

ZEMBA, a nonprofit organization, is a first-of-its-kind buyers’ group within the maritime sector, the aim of which is to accelerate commercial deployment of clean energy-powered shipping, enable economies of scale and help cargo owners maximize their positive impact beyond what any one freight buyer could accomplish alone. Following ZEMBA’s novel inaugural tender in 2024, ZEMBA’s second procurement focused on kickstarting a new market for scalable, low-carbon hydrogen-derived e-fuels that will be essential to achieve an economically viable whole-of-sector maritime clean energy transition. 

The groundbreaking effort will enable participating member companies, including cofounders Amazon, Patagonia and Tchibo, and members including Beiersdorf, Brooks Running, Green Worldwide Shipping, IKEA, Nike, Poly Medicure Ltd. and Sport-Thieme, to deploy e-fuels across an initial 20 billion tonne nautical miles of container transport activity over three years, with some members extending commitments of five years. Beginning in 2027, the program is expected to reduce at least approximately 120,000 metric tonnes of combined GHG emissions.

Through the initiative, global container line Hapag-Lloyd and regional feeder operator North Sea Container Line (NCL) were selected as the two winning shipping lines. Hapag-Lloyd will deploy e-methanol on large methanol dual-fuel containerships operating on a transoceanic trade lane, while NCL will deploy the world’s first e-ammonia-powered containership serving a northern European trade lane.

Both fuels will be made with low-carbon hydrogen produced with renewable energy and will deliver a carbon intensity reduction of at least 90 percent on a lifecycle basis relative to conventional high-emission fuel.

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The Pillsbury deal team was led by Global Sourcing & Technology Transactions partner Aaron Oser and Energy practice leader Jeff Merrifield and included Corporate partner Jeffrey Grill associate Anne Reyna; Antitrust & Competition partner Michael Sibarium; Tax special counsel Robert Logan; and Nonprofit special counsel Dawn Crowell Murphy.

In 2024, Pillsbury represented The Aspen Institute and Cargo Owners for Zero-Emissions Vessels (coZEV) on the development of ZEMBA. The firm was honored by Financial Times as the Most Innovative Law Firm in North America in Energy Transition, a recognition awarded as part of the outlet’s 2024 Innovative Lawyers North America Awards. To read more, click here.