Mitsui OSK Lines has announced an agreement with China’s largest fuel supplier Sinopec and Marubeni Corporation, which holds the top share in the marine fuel sales market for Japanese shipowners in China, to establish a long-term supply system for marine biodiesel fuel.
The memorandum of understanding aims to establish a long-term and stable supply system for biodiesel fuel – seen as a key alternative to HFO – through collaboration with Sinopec and Marubeni in support of decarbonisation efforts. MOL will work to expand the use of biodiesel fuel in China, while Sinopec and Marubeni will develop infrastructure such as storage and transportation facilities and supply ports, and ensure stable availability of biodiesel fuel.
Amid strengthening global environmental regulations and the accelerating trend toward decarbonisation, the international shipping industry is taking a lead in efforts to reduce GHG emissions. Biodiesel fuel, a ‘drop-in’ alternative that can be used without modifying existing marine internal combustion engines, is gaining attention as an effective solution capable of significantly reducing CO2 emissions over its entire lifecycle compared to conventional marine fuels such as heavy oil. To proactively advance decarbonisation efforts in the biodiesel fuel sector, where future demand is expected to grow, MOL will collaborate with Sinopec and Marubeni in China – a key supplier of biodiesel fuel feedstocks – to establish a long-term framework for biodiesel fuel supply and procurement at an early stage.
Image: Biofuel supply agreement between MOL, Sinopec and Marubeni (source: Mitsui OSK Lines)
