UK based energy technology firm Arq and Oslo-listed product tanker owner and operator Hafnia in October agreed to work together to accredit and introduce Arq Fuel™ as a key blend component for marine fuels.
Arq has developed a novel and patented technology that transforms environmentally damaging coal waste into a micro-fine hydrocarbon powder (Arq Fuel), which has many valuable industrial uses, including blending into oil products to create stable dispersions.
Particularly notable for the shipping industry, Arq Fuel offers material benefits as a low-sulphur blending component for IMO 2020 compliant marine fuels.
Under the partnership agreement, Hafnia will conduct trials using Arq Fuel on some of its vessels.
After securing the required accreditations, trials scheduled for mid-2021 aim to confirm Arq Fuel’s compatibility for the approximately 450 vessels for which Hafnia procures fuels.
Commercial quantities of Arq Fuel will be made available in the US during the second half of 2021, through Arq’s exclusive marketing partner and investor, Vitol, via their tankage in St Rose, New Orleans. Arq is already advancing plans to establish further processing plants and blending facilities at key hubs in the US, Europe and Asia.
This agreement follows a series of successful tests which have demonstrated Arq Fuel’s performance as a marine fuel component that can be used without any changes to the existing supply chain and ship engines.
Hafnia and Arq will now work together to optimise blends which meet environmental standards and maximise cost efficiencies.
Third-party Life Cycle Analysis research confirms that Arq Fuel has strong environmental credentials.
Without compromising on combustion performance, Arq Fuel produces a lower level of sulphur dioxide (SO2) and nitrogen oxides (NOx), than Residual Fuel Oil (RFO) alone.
Furthermore, on a barrel for barrel basis, Arq’s largely mechanical production of novel low carbon fuel has been calculated to be over 40% more environmentally beneficial than producing the equivalent RFO.
By cleaning up coal waste, Arq is able to remove legacy environmental liabilities and remediate land for more productive purposes.
“Arq is delighted to be partnering with a world class shipping company such as Hafnia. Our collaboration is built around a shared vision for improved environmental standards without compromising on performance or costs. I envisage that this pathway to first commercial sales will enable both companies to thrive and deliver outstanding customer value,” said Julian McIntyre, Arq CEO.
“Arq’s ambitions are well aligned with Hafnia’s environmental profile. We are optimistic that Arq Fuel will prove effective in helping Hafnia, and the shipping industry at-large, meet its GHG reduction targets,” Ralph Juhl, Hafnia Executive Vice President, Technical, noted.
“We are delighted at the prospect of Hafnia becoming one of the first adopters of Arq Fuel as a marine fuel blending component,” stated Mike Muller, Head of Vitol Asia.
Photo credit: Arq
Published: 30 October, 2020
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