regulation approaches GoodFuels reports an increasing demand

Increasing demand for biofuel

STENA BULK, UECC, AND MINSHIP HOLDING TRIALS WITH GOODFUELS

SUSTAINABLE MARINE BIOFUEL IS INCREASINGLY POPULAR AMONG SHIPOWNERS AS AN ALTERNATIVE TO FOSSIL FUELS.

At a time when the shipping industry is under growing scrutiny to improve its sustainability and move towards decarbonisation, GoodFuels is showing an increasing number of shipowners that its sustainable marine biofuel is a viable alternative. The company has carried out or is in the middle of various trials with companies such as MINSHIP, Stena Bulk, and United European Car Carriers (UECC). GoodFuels Chief Commercial Officer Isabel Welten is delighted with the growing demand for the company’s MR1-100 biofuel. “Our recent partnerships show our commitment to providing the market with a credible near-zero carbon alternative to fossil fuels. We are continuously exploring options for upscaling the usage of marine biofuels within the marine segment. More broadly, we are constantly working with the industry and collaborating with partners to supply them with a sustainable solution – and this means working with a diverse range of leading organisations from across our sector.”

Viable alternative In 2019, GoodFuels commercially rolled out its MR1-100, which is the first ever residual fuel-equivalent biofuel. It is sustainably sourced and completely derived from forest residues and waste oil products. The fuel is verified by an independent sustainability board of leading academics and NGOs in the transport sectors. Because it substantially reduces CO 2 and SOx emissions, GoodFuels’ Bio Fuel Oil (BFO) ensures compliance with the International Maritime Organisation’s (IMO) 2020 Sulphur Cap, Greenhouse Gas (GHG) reduction requirements and upcoming regulations to reduce carbon intensity from shipping. “The biofuel ‘drops in’ to normal fuel tanks, virtually eliminating all carbon emissions – between 80 to 90% well-to-propeller – compared to fossil equivalents”, explains Ms Welten. “Alongside supporting the industry’s impending decarbonisation goals and due to the absence of sulphur, the BFO is also a viable alternative to both distillates and Ultra Low Sulphur Fuel Oil. The first year of supplying this product to the market has proved very successful and as such, we are working hard on scaling volumes.”

Industry pioneers Stena Bulk Medium Range (MR) vessel Stena Immortal recently completed a ten-day sea trial during which the vessel ran on 100% biofuel in typical commercial operation. During the trial, BFO was tested in tanks, storage, and as it burnt in the engines, the fuel proved to be a technically-compliant alternative to the fossil default for oceangoing tanker vessels. “We like to show the industry that we can start reducing the carbon footprint of shipping here and now, while maintaining the highest quality technical and commercial operations. The Stena Immortal performed very well running on the biofuel, whilst continuing to deliver according to our customers’ needs without any disruption”, says Erik Hånell, President and CEO Stena Bulk. “The industry needs pioneers willing to collaborate, share knowledge, and push the development towards more sustainable shipping. We’re happy to collaborate with GoodFuels in this test to take on that mission and we encourage others to join us.” Following the successful trial on Stena Immortal, Stena Bulk and GoodFuels Marine will continue working together to gain more experience and scale the usage of Bio Fuel Oil as an alternative to conventional fossilbased fuel.

Biofuel in RoRo segment United European Car Carriers (UECC) started a three-month trial with GoodFuels in March. The Norway-based provider of shortsea roll-on/roll-off (RoRo) transportation will test 3,000mt of sustainable Bio-Fuel Oil (MR1-100 or BFO) on RoRo vessel M/V Autosky. The 140 meter, 2,080 vehicle carrier will test BFO on its normal route between Zeebrugge, Belgium and Santander, Spain. The bio-bunkering, which will take place in the Port of Rotterdam, will be the first in a series of bunkering operations between March and May 2020. The trial is expected to result in a reduction of more than 6,500mt of CO 2 emissions on a well-to-propeller basis. “We are excited to play a leading role in accelerating sustainable biofuel uptake for the RoRo segment,” comments Daniel Gent, Energy & Sustainability Manager at UECC. “This agreement demonstrates our commitment to reducing the carbon footprint of our existing tonnage and further complements the emissions reductions on our existing LNG fleet, as well as our LNG battery hybrid newbuilds.”

Alternative to fossil fuels Bavarian ship management company MINSHIP and its subsidiary MINMARINE in April announced that bulk carrier M/V Trudy successfully bunkered biofuel at the Port of Rotterdam. It was part of a ten-day trial during which the vessel sailed solely on GoodFuels’ MR1-100. The adoption of biofuel by MINSHIP is a huge step towards the ship management company and its customers reaching their ambitious CO 2 reduction goals, explains MINSHIP >>

Photo courtesy of GoodFuels.

GoodFuels Chief Commercial Officer Isabel Welten.

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Stena Bulk vessel Stena Immortal bunkered GoodFuels’ Bio Fuel Oil during a successful ten-day sea trial.

Photo courtesy of Stena Bulk.

Shipmanagement Managing Director Markus Hiltl. “This trial is a significant landmark for MINSHIP, as it will allow us to demonstrate that the use of available green, alternative fuels can make shipping less dependent on fossil fuels.” Throughout the inaugural bio-fuel-powered trial voyage taken by M/V Trudy from the Port of Rotterdam, relevant performance indicators were closely monitored to help inform future operations. Additional trials on further vessels under MINSHIP’s management are planned with a view to make biofuel a true alternative for its managed fleet to reduce carbon footprint.

Meeting the growing demand With the growing demand for MR1-100, GoodFuels continues to scale up its biofuel production. “We are confident that with targeted growth, we can ensure that the maritime industry has all of the sustainable biofuel it needs, as part of an alternative fuel mix towards decarbonisation”, states Ms Welten. “However, this indeed requires a well-maintained balance between demand and supply, for which demand needs to grow at a controlled pace. At this moment, supply is still significantly greater than demand, but the more competitive the biofuels become and the more experience

there is in the market, the more we expect that demand will grow.” GoodFuels has recently partnered with the Finco Fuel Group to offer bunkering services in the Port of Rotterdam and can service vessels operating in and out of the Netherlands, from Vlissingen to Eemshaven. “Because biofuel ‘drops in’ to vessel fuel tanks without the need for alterations to the vessel, the current bunkering infrastructure is completely fit for purpose to help vessels refuel with sustainable biofuel”, comments Ms Welten. “As the demand for our biofuel grows, we aim to supply more vessels across the globe in highly active ports. In 2017, we started a partnership with MPA in Singapore, and we would love to be able to offer a more structured supply in other parts of the world. We are looking at opportunities at ports in Western Europe, the Nordics, USA, Canada, and Australia. We hope the demand will grow to the extent where we can expand our operations around the world.”

i. goodfuels.com

Photo courtesy of MINSHIP.

Bavarian ship management company MINSHIP carried out a trial with bulk carrier M/V Trudy.

Bio-refinery

GoodFuels is investing in bio-refinery capacity, supporting the initiative of Dutch biomass technology group BTG to set up a bio-refinery. BTG will set up a new high-tech technology company called BTG-meXt, which will focus on building a pilot refinery for converting pyrolysis oil into 100% sustainable marine biodiesel for ships. Pyrolysis oil is made from biomass-based residues such as sawdust and roadside grass cuttings and is a sustainable alternative for replacing fossil fuels. The new demonstration facility has a planned production capacity of a modest 1,000mt of advanced marine fuel per year, with plans to scale up.