New Co-Processed Marine Drop-in Fuel Achieves up to 80% GHG Reduction
Finnish oil refinery Neste, which specializes in sustainable and renewable fuels, working with Danish bunker supplier Nordic Marine Oil is rolling out a co-processed marine fuel that they report can achieve an immediate reduction of up to 80 percent in greenhouse gas emissions for the maritime industry. According to the companies, they have developed an easy-to-use drop-in that produces the significant reduction in lifecycle without compromising the product quality and performance.
Neste currently produces sustainable aviation fuel and renewable diesel using its processes to refine waste, residues, and innovative raw materials into renewable fuels. The new marine fuel is produced at Neste’s refinery in Porvoo, Finland, where renewable raw materials are co-processed with fossil raw materials in the conventional refining process. The resulting product has a similar composition to conventional bunker fuels meaning that it can be easily used as a drop-in fuel without any fleet modifications.
“The maritime sector is combating climate change by all available means. Our new co-processed marine fuel is a competitive and feasible solution for shipping companies, and also for cargo and brand owners looking to reduce their GHG emissions across their value chain,” explains Sveta Ukkonen, Head of Marine Fuels & Services at Neste. “Based on the experiences gathered with Nordic Marine Oil, we will be expanding the availability of the product. The co-processed marine fuel is a strategic step for us to reduce the dependency on fossil resources by replacing crude oil-based raw materials partly with renewable raw materials.”
The new offering is in addition to Nestle’s current marine products and they report the new co-processed marine fuel is ISO 8217 compliant with consistent refined quality. The sustainability characteristics of the co-processed marine fuel are certified with International Sustainability and Carbon Certification (ISCC PLUS) with a mass balance approach. The method used to calculate life cycle emissions and emission reduction was guided by the EU Renewable Energy Directive II showing that it enables up to 80 percent GHG emission reduction over the lifecycle compared to fossil fuels.
“For cargo owners and charterers, the product is an effortless and cost-efficient opportunity to reduce CO2 emissions in transportation and reach their climate targets. The emission reduction is immediate and the solution is easy to implement as the shipowners are not forced to make any investments or changes to the vessel engines,” said Steen Møller, CEO of Nordic Marine Oil.
Nordic Marine Oil said that it has started to build its sustainability offering, and the co-processed marine fuel is its first step enabling the shipping industry to reduce its GHG emissions. The company operates its oil terminals and bunker vessels in Danish key ports, serving customers from all segments of the shipping industry. The new marine fuel will be available as of May 2022.