Freight and passenger ferry operator DFDS has announced its investment in start-up biofuels producer Mash Energy.
Mash Energy produces biofuel from agricultural waste, which it currently sources from the by-product of nut processing in Tanzania and India.
The two companies will work to develop a commercially viable alternative shipping fuel to currently used fossil fuels, including testing on a ferry owned by DFDS.
"We are extremely pleased to add DFDS, a large ferry operator, to the ownership circle which will give opportunities to test the biofuel in engines and verify that our product is indeed of the quality and price necessary for it to succeed in the shipping industry," said Jakob Andersen, CEO of Mash Energy.
The total investment to be made by DFDS is DKK 10 million (€1.34 million) to be invested in three stages for a combined 24% ownership share of Mash Energy.
"The investment is a result of our ambition to take responsibility for the development of commercially viable biofuel that is a real alternative to fossil fuels and thereby reduce the carbon footprint of our ferries,” added Sofie Hebeltoft, head of CSR at DFDS. “The aim is also to produce sufficient volume to make the biofuel commercially viable and identify other waste products that can be used to produce the biofuel."
According to DFDS, the investment support the ferry operator’s corporate social responsibility (CSR) strategy, which includes the improvement of air quality.