As of 2020 IMO’s 2020 sulphur fuel cap of 0.5% will be implemented globally. The fuel cap is being introduced to reduce sulphur oxide emissions from ships using heavy fuel oils to reduce harm to humans and the environment. Bunker fuels within the emission control area (ECA) will continue to have a cap of 0.1%.
“Koole Terminals continues to explore opportunities to contribute to a sustainable society. One of the initiatives is to utilize our PID unit for producing environmentally friendly transportation fuels. We are proud to partner with Maersk and produce a low sulphur bunker fuel to support the reduction of sulphur emissions in order to reduce air pollution,” says John Kraakman, CEO of Koole Terminals.
Production following the agreement will take place at Petrochemical Industrial Distillation (PID) unit at Koole’s Botlek site at Rotterdam port with annual production expected to cover 5-10% of Maersk’s fuel demand. The toll distillation deal will also give Maersk the opportunity to produce VLSFO bunker fuel and allow further expansion of its supply volumes for bunker fuel in Europe.
“The fuel manufacturing process allows Maersk to produce compatible low sulphur fuels that complies with the IMO 2020 sulphur cap implementation, reducing the need to rely on 0.1% price-based gasoil and fuel oil outside the ECA zones. Our activities with Koole will be an important driver in ensuring stable, reliable services for Maersk’s customers during a potentially volatile period for global shipping,” added Niels Henrik Lindegaard, Head of Maersk Oil Trading at A.P. Moller, Maersk.
For more information on all topics for Procurement, Supply Chain & Logistics - please take a look at the latest edition of Supply Chain Digital magazine.
Image source: Maersk