Scan Global Logistics initiates project with MAN involving 100% marine biofuel, HVO-fueled trucks
As a result of Scan Global Logistics’ long-standing partnership with MAN Energy Solutions in Denmark, the company announced Dec. 8 that it has initiated a project to test and develop sustainable-logistics solutions.
“Decarbonizing the supply chain is a joint effort,” SGL stated.
The full project scope involves 100 percent marine biofuel and trucks running on hydrotreated vegetable oil (HVO), also known as renewable diesel, ensuring approximately 85 percent reduction on the last-mile delivery.
“The project entails 50 40-foot ocean containers from Japan to Denmark and marks only the beginning of our joint net-zero journey,” SGL stated. “The business case will inform future co-led carbon-reducing initiatives.”
MAN Energy Solutions, a world-leading provider of large-bore diesel and gas engines and turbomachinery, is highly invested in transitioning towards a global carbon-neutral supply chain and taking concrete action to decarbonize shipping.
Ongoing discussions about CO2-reducing solutions have been part of SGL’s long-term strategic logistics partnership with MAN Energy Solutions leading up to the project launch, according to the company.
We were looking for more concrete learnings to inform our future CO2-reducing initiatives,” said Jan Toftelund Abel, MAN Energy Solutions Denmark’s head of transport management. “SGL is a highly valued partner who provided us with the solution we needed, involving data, access to biofuels, supply-chain expertise and a willingness to engage with us on the decarbonization journey. We wanted to see what results can be obtained if we go all in and SGL was ready.”
As a significant contributor to global trade and subsequent carbon emissions, MAN Energy Solutions’ business case focuses on reducing its supply-chain emissions by 50 percent by 2030.
Toftelund Abel explained why taking action now is essential.
“Creating a sustainable future is of high priority with MAN Energy Solutions,” he said. “This project provides essential learnings on carbon-reducing solutions to decrease our CO2 supply-chain emissions, insights which we can then include in our future decision-making to optimize our decarbonization efforts.”
Adding to the urgency is the EU-driven CO2 taxation on ocean freight coming into effect Jan. 1, gradually making fossil-fueled transport more costly in the future.
“For every ton of CO2 we can reduce from our ocean freight, we can decrease our overall costs by a given factor,” Toftelund Abel said. “With the help of SGL, this project allows us to learn precisely the value of that [key performance indicator (KPI)], which will become a deciding factor when prioritizing which routes to decarbonize in the future.”
A detailed set of data on the specific route’s CO2 emissions compiled by MAN Energy Solutions over five years forms the project basis.
Apart from providing the KPI for future decarbonization efforts, the project will provide MAN Energy Solutions valuable knowledge about the biofuel and HVO procurement process managed, supervised and completed by SGL and verified by independent auditors, including issuing a CO2 certificate for MAN Energy Solutions’ sustainability accounting and ESG reporting.
The project results will help MAN Energy Solutions in Denmark identify the most carbon-reducing potential in its global supply chain.
“As a long-term partner, it’s a natural part of our cooperation with MAN Energy Solutions to challenge the status quo and turn strategy into practical solutions, enabling us to achieve our mutual climate targets,” said Steen Søgaard, SGL’s regional CEO for the Nordics.
The project is focused on a particular corridor from Japan to Denmark that sees a high frequency of full-load containers.
Specifically, during the second half of 2023, 50 40-foot containers will be transported using 100 percent marine biofuel and HVO-fueled trucks for the last-mile delivery to minimize end-to-end emissions as much as possible.
“We expect that offering sustainable, proven solutions will become an increasingly pivotal tender benchmark and central to future quote requests across the industry,” Toftelund Abel said. “We are certain SGL will be able to provide that and thus support MAN Energy Solutions in achieving our scope 3 CO2 reductions. Fifty containers are only the beginning.”
SGL added that in the efforts to support its customers in taking concrete initiatives to decarbonize the supply chain, the company is ready to repeat similar measures “at any port on any continent.”