Mitsui OSK Lines, Sinopec, Marubeni to establish long-term supply system for marine biodiesel fuel

Photo: Mitsui O.S.K. Lines Ltd.

Mitsui O.S.K. Lines Ltd. announced Dec. 11 that it has signed a memorandum of understanding (MOU) with China’s largest fuel supplier Sinopec Zhejiang Zhoushan Petroleum Co. Ltd. and Marubeni Corp., which holds the top share in the marine fuel sales market for Japanese shipowners in China, for the establishment of a long-term supply system for marine biodiesel fuel.

According to MOL, the MOU aims to establish a long-term and stable supply system for biodiesel—a key alternative to heavy oil—through collaboration with Sinopec and Marubeni in support of decarbonization efforts.

MOL will work to expand the use of biodiesel in China, while Sinopec and Marubeni will develop infrastructure such as storage and transportation facilities and supply ports, and ensure the stable availability of biodiesel.

Amid strengthening global environmental regulations and the accelerating trend toward decarbonization, the international shipping industry is taking the lead in efforts to reduce greenhouse-gas (GHG) emissions.

Biodiesel, a drop-in alternative that can be used without modifying existing marine internal-combustion engines, is gaining attention as an effective solution capable of significantly reducing CO2 emissions over its entire lifecycle compared to conventional marine fuels such as heavy oil.

To proactively advance decarbonization efforts in the biodiesel sector, where future demand is expected to grow, MOL will collaborate with Sinopec and Marubeni in China—a key supplier of biodiesel feedstocks—to establish a long-term framework for biodiesel supply and procurement at an early stage.

The MOL Group is advancing the adoption of clean fuels based on the environmental strategy in its management plan “Blue Action 2035,” aiming to achieve net-zero GHG emissions by 2050.

The MOU represents a significant milestone toward achieving that target.

The group will promote the use of biodiesel, a low-carbon energy source that can be adopted immediately, and contribute to the decarbonization and reduction of carbon emissions in marine transport.