Blockchain helps bunker sustainable biofuels in Rotterdam

Sustainable marine biofuel produced by Dutch company GoodFuels has been successfully delivered to a bulk carrier chartered by international mining company BHP.

The vessel, Frontier Sky, is owned by Japanese shipping company NYK. CO2 savings from the fuel have been verified with BLOC’s blockchain fuels assurance programme.  The marine biofuel was supplied by GoodFuels logistics partner Varo Energy.

Both BHP and NYK have set ambitious decarbonisation strategies, with NYK aiming to reduce GHG emissions by 30% per ton-km by 2030 compared to 2015, and by 50% per ton-km by 2050.

According to a GoodFuels’ statement, the fuel delivered is a drop-in marine gasoil (MGO) equivalent. It was blended in a 30%/70% mix with conventional fossil-based MGO. The quantity delivered to NYK and BHP will save over 50 tonnes of CO2 emissions.

BLOC’s Maritime Blockchain Labs solution was used to verify both the chains of custody, and that only sustainably produced and traceable biofuels were used. 

 

Important demonstration

“We’re building on an earlier trial undertaken in September and are moving towards validating an important decarbonisation pathway with blockchain technology” said BLOC CEO Deanna MacDonald.

“We are further testing the prototype in a real world setting to capture the biofuel delivery from BHP, and to create a complete digital audit trail, with extended functionality for biofuels and emissions tracking,” MacDonald continued.

“This is an important demonstration of how blockchain technology could play a role in creating a global, trusted MRV system, and build the trust necessary for broader adoption of cleaner fuels both in terms of meeting 2020 sulphur cap requirements and the IMO’s 2050 decarbonisation goal.”

New regulations have seen a growing interest in low emission green fuels in the maritime sector. From 1 January 2020 the International Maritime Organisation (IMO) will implement a 0.5%m/m cap for fuel oil used in ships. IMO is also looking to introduce Greenhouse Gas reduction requirements.

“We recognise we have a stewardship role, working with our customers, suppliers and others along the value chain to influence emissions reductions across the full life cycle of our products. We fully support moves to decarbonise the freight industry, including implementing IMO2020,” said Abdes Karimi, head of strategy and planning at BHP.

“Biofuels offer an innovative approach to more sustainable bunker fuel. It’s important for us to ensure the biofuel we use is sustainably produced and traceable. This consortium has invented new ways of working that improve productivity and reliability in the bunker fuel supply chain and enable trustful tracking of both the provenance and carbon savings. It demonstrates an effective model for the whole industry to build on in the future.”

Late last year, GoodFuels, a specialist in sustainable marine fuels, announced it had successfully tested the world’s first zero emission marine fuel.

“We want to make it as easy as possible for vessels to use biofuels to reduce their footprint,” explained Isabel Welten, head of marine at GoodFuels.

“By documenting emissions savings and chains of custody, and combining this with smart incentives to use cleaner fuels, we can build a trusted, financially viable pathway towards zero-carbon shipping.”