Maersk Oil Trading and Koole Terminals on 5 Sep signed an agreement to produce IMO 2020-compliant bunker fuel.
The production will take place at the Petrochemical Industrial Distillation (PID) unit, located at Koole’s Botlek site in the heart of the Port of Rotterdam.
The toll distillation deal allows Maersk to produce VLSFO bunker fuel and will enable Maersk to further expand its bunker supply volumes in Europe.
Annual production is expected to cover 5-10% of Maersk’s annual fuel demand.
Niels Henrik Lindegaard, Head of Maersk Oil Trading at A.P. Moller – Maersk, said: “The fuel manufacturing process allows Maersk to produce compatible low sulphur fuels that complies with the IMO 2020 sulphur cap implementation, reducing the need to rely on 0.1% price-based gas oil and fuel oil outside the ECA zones.
“Our activities with Koole will be an important driver in ensuring stable, reliable services for Maersk’s customers during a potentially volatile period for global shipping.”
John Kraakman, CEO of Koole Terminals, said: “Koole Terminals continues to explore opportunities to contribute to a sustainable society.
“One of the initiatives is to utilize our PID unit for producing environmentally friendly transportation fuels.
“We are proud to partner with Maersk and produce a low sulphur bunker fuel to support the reduction of sulphur emissions in order to reduce air pollution.”
The IMO 2020 0.5% sulphur fuel cap will be implemented globally as of 1 January 2020.
Bunker fuels within the ECA (Emission Control Area) zones will remain at the current cap of 0.1% sulphur.
Koole’s PID unit will also enable Maersk the possibility to produce such ECA 0.1% sulphur fuel.
Philippine is the number one seafarer-producing country in the world.