Norwegian company MPC Container Ships (MPCC) has signed an agreement with Ineratec of Germany for the supply of synthetic Marine Diesel Oil (MDO) made from biogenic CO2 and renewable hydrogen, with delivery set to start in 2024.
Ineratec believes that, with the shipping industry undertaking great efforts to decarbonise, the drop-in compatibility of the company’s synthetic MDO can directly replace conventional fossil fuels currently used by existing vessels. Early collaboration between e-fuel providers and offtakers across industries is an important factor for scaling up production volumes and driving decarbonisation. With this agreement, MPCC and Ineratec say that they can kickstart the transition towards carbon neutral, synthetic diesel in the shipping sector.
MPCC CEO Constantin Baack said: “While there will be a variety of different fuels in the future, the synthetic MDO produced by Ineratec is of particular relevance as it can be used both in conventional combustion engines on our existing vessels and as pilot fuel for our methanol powered newbuildings. As a key building block of the decarbonisation of our industry, we expect that green fuels may come to be included as part of vessel hire, in which case it will be vital for MPCC to have a strong relationship with fuel providers.”
Ineratec CCO Philipp Engelkamp added: “In order to make a sustainable future with e-fuels possible, Ineratec is acquiring partners all around the world. Following projects that target the production of sustainable aviation fuel, car fuel and sustainable chemicals we are really happy to partner with MPCC to bring a sustainable product into the shipping industry.“
Ineratec has begun the manufacturing phase for its pioneer plant in Frankfurt, where the majority of the sustainable fuel will be produced. After the commissioning phase it will deliver up to 3.5m litres of sustainable fuel, including MDO, and synthetic chemicals to transform hard-to-abate industries. From there, the German clean tech company will ramp up e-fuel production at additional sites worldwide, reducing CO2 emissions and thus fuelling a climate-friendly future.