BP has entered a long-term agreement with New Zealand transport company Strait NZ to supply marine biofuels to the port of Wellington from early 2024.
The oil major will supply a blend of 24pc International Sustainability and Carbon Certification-approved used cooking oil methyl ester (Ucome) biodiesel and 76pc very-low sulphur fuel oil (VLSFO). The blend can reduce lifecycle CO2 emissions by up to 20pc as compared with standard marine fuel oil, BP said.
“This is the first of its kind for the Port of Wellington,” said BP Marine’s global head Eddie Gauci, with BP describing the deal as supplying the region’s first bio-VLSFO. No volumes were disclosed, but BP said it aims to produce around 100,000 b/d of biofuels globally by 2030.
Biofuels are seen as a promising short-term drop-in solution to decarbonise shipping fleets without requiring extensive modifications to engines or infrastructure, unlike other longer-term options such as green methanol or ammonia.
The International Maritie Organisation adopted a revised greenhouse gas strategy earlier this month, aiming to cut emissions by at least 20pc, and preferably by 30pc, by 2030 compared to 2008 levels, and reach net zero by or around 2050.
By Amandeep Parmar