Cargill and Hafnia Look to Shake Up Bunker Business with New JV

A newly formed joint venture between Hafnia and Cargill’s Ocean Transportation business looks to emerge as one of the largest bunker suppliers while also driving the move to decarbonization. The two companies announced today the plans to launch Seascale Energy. By combining strengths, the two companies said they aim to set a new standard for marine fuel procurement by delivering considerable cost efficiencies, transparency, and access to sustainable fuel innovations. 

Expected to launch in mid-2025, Seascale Energy will initially represent 7.5 million metric tons in bunkering volume placing it solidly among the ten largest bunker providers. It will be jointly owned and managed under a dual-CEO structure with officers ranging from Singapore to Geneva, Copenhagen, and Houston.

“Our vision is to lead the energy transition in shipping, unlocking value for our stakeholders while addressing industry challenges around transparency, quality, and decarbonization,” said Jan Dieleman, President of Cargill’s Ocean Transportation business. “Together, we are shaping a more sustainable future for marine fuel procurement.”

Cargill best known as an agricultural company and trader also operates a large shipping division. In 2021, the company launched Pure Marine Fuels as a partnership with Maersk Tankers. The two companies said they purchased over 4 million tons of bunkers annually. In a 2023 interview with S&P, Cargill highlighted its growing position in biofuels. For its shipping operations, Cargill working with Lauritzen ordered what are likely to become the first methanol-fueled bulkers due to introduction this year and next.

Hafnia leads the Bunker Alliance which has over 20 participants from the shipping industry. It reports that the alliance, with a yearly volume of over 3.5 million metric tons, purchases fuel for over 1000 vessels. It ranks among the top 10 bunkering companies in the world.

By consolidating bunker purchasing volumes, Seascale Energy reports it will secure even more competitive pricing and terms while providing tailored procurement solutions to meet its customers’ diverse needs. It will also offer an expanded global port network, giving customers a consistent, high-quality fuel supply worldwide.

“As one of the largest services of its kind, led by two large-scale fuel users, we are committed to improving efficiency and addressing industry challenges to benefit our stakeholders across the maritime sector,” said Hafnia CEO Mikael Skov. 

The joint venture reports it will offer shipowners and charterers improved transparency and scale, enabling them to secure competitive deals and benchmark performance. Tailored procurement services will reduce internal costs, freeing resources for customers to focus on their core operations.