Höegh Autoliners in strategic partnership with biofuel supplier VARO

Höegh Autoliners next gen ships may burn ammonia. Meantime biofuels are a green option that's available now.

Shipping’s customers, including auto manufacturers, are looking to wring carbon out of their supply chains. Leading car carrier operator, Oslo-headquartered Höegh Autoliners has plans for its next-generation of ships to operate on zero-carbon ammonia. Meantime, with ammonia still a while away, it has entered into a strategic partnership with Swiss-based VARO Energy aimed at advancing decarbonization through the supply of advanced biofuels for deep-sea transportation from Europe.

VARO’s biofuels business, is focused on reducing the use of food and feed as feedstocks and building assets to manufacture advanced biofuels derived from waste and advanced feedstocks, including sustainable aviation fuels (SAF) and renewable diesel (HVO).

Höegh Autoliners has seen an increasing number of customers opting for biofuels, In 2021, it marked a significant milestone by completing its first carbon-neutral voyage when Höegh Trigger ran on advanced biofuels on a journey from Europe to South Africa. In 2022, the company supplied 3,858 tonnes of biofuel to two prominent automobile manufacturers. In 2023, its commitment to sustainability continued by sourcing 10,377 tonnes of biofuel, with several other projects in the pipeline expected to further increase the biofuel supply in 2024.

BMW Group is among the OEMs already choosing to ship cargo using advanced biofuels, BMW’s contract with Höegh Autoliners to use biofuels for its shipments resulting in emissions reductions of 4,466 tonnes of CO2 equivalents in 2022.

Andreas Enger, CEO of Höegh Autoliners, says the partnership with VARO marks a significant step forward in the company’s commitment to becoming a leader in carbon-neutral deep-sea shipping and in its strategy to reduce its environmental footprint and combat climate change.

“We are pleased to provide our customers with greener deep-sea transportation solutions as a step toward more environmentally responsible shipping,” he said.

“Höegh Autoliners is not just a customer but a strategic partner,” said VARO CEO Dev Sanyal. “I am delighted that VARO will be collaborating with Höegh to forge innovative solutions, share insights, and drive sustainable progress, contributing to the ambitions set by the International Maritime Organization (IMO) to reduce the carbon intensity of emissions from shipping by at least 40% by 2030, and 70% by 2050, compared with 2008 levels. Together, we aim to help decarbonize deep-sea shipping, leveraging the potential of biofuels and ensuring a more sustainable future for our customers.”