New Biofuel Breeds on Swedish Coast
Biofuel pioneers, Swedish fuel talent ScanOcean in collusion with Finnish refining powerhouse Neste, are set to usher in a new age in the Swedish bunker market with the launch of an innovative biofuel product. Embracing modern eco-friendly solutions, the product is being distributed at multiple port locations along Sweden’s east coast and the Södertälje ex-pipe utility catering to the transit vessels venturing into Lake Mälaren.
Unveiling ‘0.1 Co-processed’, a Green Gamechanger
Breaking free from the chains of convention, Neste’s fresh offering ‘0.1 Co-processed’ takes the stage as a DMA MGO meticulously derived from a blend of bio-crude and fossil crude oil. This information surfaced in an email statement delivered by the corporations on a recent Monday. Syncing perfectly with ISO 8217 stipulations, the product has earned the desirable ISCC plus certification and boasts up to 80% reduction in lifecycle greenhouse gas (GHG) emissions than the usual DMA MGO.
Price Perspective and Market Reaction
The novelty comes with a price tag of around $1,700/mt, as an insider from one of the companies disclosed to Ship & Bunker. This figure overshadows the MGO’s recent cost of $943/mt at Gothenburg, based on data from Ship & Bunker. ScanOcean’s Managing Director, Jonatan Karlström, evinced enthusiasm towards the enterprise. “We already have several interested clients, and we look forward to start delivering this product,” he proclaimed. This venture forms an essential checkpoint in ScanOcean’s campaign to amass a range of sustainable commodities and services.
Biofuel Demand Surges Amidst Changing Tide
Shipowners are progressively gravitating towards biofuel bunker blends in their push for a carbon footprint reduction, viewing them as a seamless substitute to conventional fuels. This climate-conscious switch lets them slash GHG emissions, bypassing the need for extensive investment in novel, alternative fuel-optimized vessels. “As we soon enter a new regulatory landscape in European shipping, reducing emissions at low cost will be key and we aim to provide the best solutions for this, and the DMA co-processed with renewable raw materials is an extremely attractive fuel in this respect,” emphasized Karlström.
