Low cost and quick to scale: drop-in fuel for shipping

Written by Heather Ervin
Nicholas Ball of XFuel describes how sustainable drop-in fuels offer an immediate, cost-effective solution for the shipping sector as it faces the challenge of decarbonization.

Nicholas Ball of XFuel

Nicholas Ball of XFuel describes how sustainable drop-in fuels offer an immediate, cost-effective solution for the shipping sector as it faces the challenge of decarbonization.

Sustainable, drop-in fuels offer an effective and immediate solution to shipping’s decarbonization problem. While Lloyd’s List Intelligence forecast that by the end of this decade more than 10,000 vessels in the global fleet would need to be retired because they would be unable to meet IMO regulations on vessel carbon intensity, a drop in fuel, that can be blended with MGO or even replace MGO or VLSFO entirely, promises to keep vessels on the water and operating until their original planned retirement date.

Shipping’s net-zero targets are strict, and the timings required to meet them are hugely challenging. While the industry waits for alternative fuels to be tested, developed and then commercialized, more carbon continues to be emitted and the effects of carbon on our climate worsen. The challenge of scaling up low-carbon fuels is a significant barrier to their full adoption and the decarbonization of the shipping industry.

While decisions about fleet renewal, such as fuel choice and engine retrofits are costly and likely to vary between ship owners depending on the characteristics of their fleet, XFuel offers a solution that solves an immediate problem at a competitive price. Drop-in fuels do not require retrofitting and can offer significantly reduced emissions on a well to wake basis. Our fuel, which is a drop-in for MGO, is made from waste streams in industries such as agriculture, forestry and construction. A by-product of our fuel production process is biochar, which captures and stores carbon.

As well as biogenic waste streams, we also use recycled carbon, such as waste lubricant oils, as a feedstock. All the waste streams we use for our fuels require careful end of life processing and management, otherwise they can be extremely damaging and harmful to the environment. Waste oils are often illegally dumped, while forestry and agriculture wastes might be left to decompose and release harmful greenhouse gases. XFuel’s use of waste feedstocks and the production of biochar as a by-product of the process, supports the circular economy by providing a profitable solution for waste management.

Since the very beginning, XFuel has focused on keeping the cost of production low, in order to offer a price competitive product to vessel operators. Our fuel production plants have a modular construction design, meaning they are easy and quick to build and scale. Because our production facilities can use a wide range of feedstocks, locations do not have to be selected with a particular source of waste in mind, making it easier to locate production facilities close to end users and to build them out rapidly. This flexibility of location also reduces the cost and associated emissions of transporting feedstocks to the plant and moving fuel to the end user.

Because the fuel is a drop-in that can be used blended with MGO or as a 100% substitute, ship-owners can be confident of its safety and compatibility, not only in the vessel but also during transport and bunkering. This in turn helps to keep costs low as it eliminates the need for new infrastructure.

The shipping industry faces a significant challenge to ensure its vessels keep pace with the decarbonization regulations planned by the IMO, and the costs incurred by emissions trading programs, such as the EU ETS. Alongside this drive to decarbonize in the shipping and other transport sectors, XFuel is continuously innovating to stay ahead of the market and deliver cost competitive fuels that effectively cut emissions for asset owners. Our long-term thinking drives us to create a process that can deliver fuels from abundant waste feedstocks at low cost, and support the sustainability of key players in the shipping industry as it navigates the energy transition.


https://www.businessgreen.com/news/4025506/turbulent-seas-ahead-shipping-firms-banks-decarbonisation-efforts
Categories: Engines & Fuel, Op-Eds Tags: , , ,