Maersk Oil Trading, a subsidiary of A.P. Moeller-Maersk (Maersk), the largest container shipping line in the world by market share, has signed an agreement with Koole Terminals to develop an IMO 2020-compliant fuel at the Port of Rotterdam.
According to a statement, the production will take place at the Petrochemical Industrial Distillation (PID) unit, located at Koole’s Botlek site in the heart of the Port of Rotterdam.
The toll distillation deal allows Maersk to VLSFO bunker fuel and will enable it to expand its bunker supply volumes in Europe; Maersk expects annual production to cover 5-10% of Maersk’s annual fuel demand.
Speaking about announcement, Niels Henril Lindegaard, Head of Maersk Oil Trading, said: “The fuel manufacturing process allows Maersk to produce compatible low sulphur fuels that comply with the IMO 2020 sulphur cap implementation, reducing the need to rely on 0.1% price-based gas oil and fuel oil outside the ECA zones.
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“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.”
John Kraakman, CEO, Koole Terminals, also spoke: “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.”
The initiative is a result of the upcoming IMO regulations on sulphur emissions, which will prohibit ships from emitting more than 0.5% in their fuel, which will come into effect on January 1, 2020.
This has caused many carriers and ports to pursue environmentally-friendly fuels. In April 2019 the Metter Maersk began a voyage from Rotterdam to Shanghai powered by a biofuel, which was based primarily on cooking oil.