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EIB and CEPSA sign EUR 285 mil loan to finance second-generation biofuels plant

Biofuels produced by plant will serve industries such as aviation, maritime transport and heavy-duty road transport to reduce emissions, says EIB.

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EIB and CEPSA sign EUR 285 mil loan to finance second-generation biofuels plant

The European Investment Bank (EIB) on Thursday (27 June) said it signed a EUR 285 million (USD 307 million) loan agreement with Cepsa for the construction of an advanced biofuels plant to be located next to La Rábida Energy Park in Palos de la Frontera, Andalusia.

The plant, which Cepsa is building together with Bio-Oils, will produce sustainable aviation fuel (SAF) and renewable diesel (HVO), from organic waste such as used cooking oil or from agricultural waste, advancing the circular economy. 

Once operational, the facility is expected to process as much as 600,000 tonnes of waste and produce up to 500,000 tonnes of second-generation biofuels annually.

The biofuels will serve industries such as aviation, maritime transport and even heavy-duty road transport for which decarbonisation and electrification pose challenges. Biofuels are an immediate solution to reduce CO2 emissions from this sector, without making changes to existing engines.

“This loan is a clear example of how the EIB promotes the energy transition also in hard to abate sectors. This project will contribute to make Spain one of the leading countries in the production of biofuels,” said Gilles Badot, director of EIB operations for Spain and Portugal.  

“Supporting private companies like Cepsa, which are investing in this transition and advancing their own decarbonisation strategies, is one way the EIB is accelerating the transition to a more sustainable energy model that promotes EU energy autonomy.”

The investment by Cepsa and Bio-Oils will be made entirely in Andalusia, a cohesion region where per-capita income is below the EU average. Given the project scope, it is expected to have a positive impact on the local economy by boosting growth and job creation. As a result, the loan signed with Cepsa makes a significant contribution to the EIB's commitment to economic, social, and territorial cohesion.

“We are grateful for the EIB's support to this project, which is key to our Positive Motion strategy and to Spain's and Europe's progress towards the necessary energy independence. This plant will enable us to take a giant step forward in the production of green molecules, with the aim of facilitating the immediate decarbonisation of land, sea and air transport by reducing CO2 emissions by up to 90% compared with traditional fuels,” said Maarten Wetselaar, Cepsa's CEO.

This project supports the decarbonisation objectives of the European Green Deal. It is also part of the EIB’s action plan to support REPowerEU in ensuring energy security and reducing EU dependence on fossil-fuel imports.

The project is supported by InvestEU, an EU programme to mobilise more than €372 billion of additional investment in the period 2021-2027. It furthers one of the programme’s main objectives: developing the energy sector and the sustainable bioeconomy.

With this new arrangement, the EIB is continuing to support Cepsa's decarbonisation strategy. It is the third financing operation with Cepsa in the last two years to accelerate this strategy. 

The previous two were a loan of EUR 80 million for photovoltaic plants in Andalusia and a loan of EUR 150 million for Cepsa’s network of electric charging stations in Spain and Portugal.

 

Photo credit: European Investment Bank
Published: 1 July, 2024

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Shipping Corridor

Clear plan developed for Stockholm-Turku green shipping corridor

After a year of cooperation, Viking Line, Port of Turku and Ports of Stockholm said they have now laid a solid foundation for the green corridor project and developed a clear plan for a common way forward.

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Clear plan developed for Stockholm-Turku green shipping corridor

Viking Line, Port of Turku and Ports of Stockholm on Thursday (6 February) said they have now laid a solid foundation for a green shipping corridor project and developed a clear plan for a common way forward.

This comes after working together for a year on the project which aims to establish a green, fossil-free shipping corridor between Stockholm and Turku. 

On the anniversary on 6 February, the parties and a large number of invited stakeholders gathered for an open seminar in Turku, Finland. Results, experiences, challenges and opportunities were discussed based on the common goal of establishing a green maritime corridor between Stockholm and Turku by 2035.

Magdalena Bosson, CEO Ports of Stockholm, said: “We are very pleased with the cooperation and the work done during the first year.”

“We have been investing in onshore power supply infrastructure for ships for many years and Viking Line is one of the pioneers. Now we are further sharpening our goals together with the other parties to establish a fossil-free shipping corridor between Stockholm and Turku.”

Jan Hanses, CEO Viking Line, said: “We are proud to be part of this important co-operation project for a cleaner Baltic Sea. Our most significant investment so far is to offer all our passengers and freight customers biofuel for transport between Stockholm and Turku, reducing emissions for their journeys by 90%.”

“In addition, a possible battery installation and Elogrids, which reduces energy consumption, are important elements of our work in the coming years.”

Elogrids is a grid system installed on the ship's hull to reduce resistance and improve fuel efficiency. It optimises water flow and reduces turbulence, resulting in lower energy consumption.

Erik Söderholm, CEO Port of Turku, said: “A green shipping corridor gives us the opportunity to promote sustainable development and reduce the environmental impact of shipping.”

“During the past year, we have started more detailed planning of measures related to the green shipping corridor, such as updating our carbon footprint calculation and preparing for the development of charging stations for heavy traffic.”

During the first year, the parties have identified and prioritised the most important goals and measures to reduce carbon dioxide emissions in shipping. 

A clear project plan with activities has been developed, including:

Viking Line

  • Pre-study of battery installation on Viking Grace and Viking Glory
  • Installing Elogrids on the vessels
  • Increase sales of biogas supplements for transport between Stockholm and Turku

Port of Turku

  • Study and pilot project for onshore power supply at the quay
  • Zero emissions from Viking Line vessels at berth
  • Guidelines and incentives for port operators for zero emissions
  • In collaboration with external actors, develop concepts that link the green shipping corridor with sustainable transport from and to the port on land
  • Opportunity for shipping companies to bunker sustainable fuels

Ports of Stockholm

  • Zero emissions from Viking Line vessels at the quayside
  • In collaboration with external actors, develop concepts that link the green shipping corridor with sustainable transport from and to the port on land
  • Opportunity for shipping companies to bunker fossil-free fuels

 

Photo credit: Ports of Stockholm
Published: 7 February, 2025

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Biofuel

China: Sinobunker sets new record for largest domestic biofuel bunkering operation

Firm refuelled COSCO SHIPPING Lines’ “Xin Fei Zhou” with 4,000 mt of B24 biofuel with bunker barges “Xin Run 23” and “Daqing 226” at Shenzhen’s Yantian International Container Terminals.

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China: Sinobunker sets new record for largest domestic biofuel bunkering operation

China Shipping & Sinopec Suppliers Co., Ltd. (SinoBunker) on Sunday (2 February) said it recently set a new record for the largest single bunkering operation of marine biofuel in China. 

The firm refuelled containership Xin Fei Zhou, owned by COSCO SHIPPING Lines with 4,000 metric tonnes (mt) of B24 biofuel.

The bunkering operation adopted a “dual bunker barge supply” method where the company’s barges Xin Run 23 and Daqing 226 worked overnight to successfully complete the operation at Yantian International Container Terminals. 

“This strongly proves that the company has the ability to regularly supply marine biofuel, and strengthens the confidence of the industry in the development of marine biofuel,” SinoBunker said.

The company said it has been on the forefront of the use of bio bunker fuel as it conducted research, completed bench tests and actual ship tests for marine biofuel and issued three group standards for the domestic market. 

 

Photo credit: China Shipping & Sinopec Suppliers
Published: 6 February, 2025

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Bunker Fuel

DNV: IMO to review circular on bunker tankers carrying biofuel blends up to B30

IMO PPR12 finalised an interim circular allowing conventional bunker ships certified as oil tankers under MARPOL Annex I to carry biofuel blends containing up to 30% biofuel; circular is subject to approval by MEPC 83 in April.

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RESIZED CHUTTERSNAP on Unsplash

Classification society DNV on Monday (3 February) shared a statutory news article that provides a summary of the 12th session of the IMO’s Sub-Committee on Pollution Prevention and Response (PPR 12).

The following is an excerpt from the news update relating to bunker fuels:

The 12th session of the IMO’s Sub-Committee on Pollution Prevention and Response (PPR 12) was held in London from 27 to 31 January 2025. PPR 12 finalized guidance on in-water cleaning of ships’ biofouling and guidelines on certification of Selective Catalytic Reduction systems. A wide range of other topics was on the agenda, including cargo tank cleaning procedures, carriage of biofuel blends, black carbon, discharge water from Exhaust Gas Cleaning Systems, sewage treatment and marine plastic litter.

Meeting highlights

  • Finalized a circular on guidance on in-water cleaning of ships’ biofouling
  • Revised guidelines on certification of Selective Catalytic Reduction (SCR) systems
  • Agreed on an interim circular allowing bunker ships certified as oil tankers to carry biofuel blends containing up to 30% biofuel
  • Discussed amendments to MARPOL Annex II on cargo tank stripping, tank washing operations, and prewash procedures
  • Continued the revision of MARPOL Annex IV on sewage treatment
  • Reviewed the Action Plan to address marine plastic litter from ships

Safety and pollution hazards of chemicals and preparation of amendments to the IBC Code

Carriage of biofuel blends on bunker ships

Currently, oil tankers are permitted to carry biofuel blends containing up to 25% biofuel, while blends exceeding this limit are restricted to transport on chemical tankers. PPR finalised an interim circular allowing conventional bunker ships certified as oil tankers under MARPOL Annex I to carry biofuel blends containing up to 30% biofuel. The circular is subject to approval by MEPC 83 in April. 

Prewash requirements for FAME  

Due to the physical properties of Fatty Acid Methyl Ester (FAME) and several pollution incidents in the North Sea resulting from tank cleaning after unloading of FAME, PPR 12 considered a proposal to add operational requirement 16.2.7 to the IBC Code entry for FAME. This would mandate a prewash after unloading FAME. The geographical area of concern will be as defined by Regulation 13.9 in MARPOL Annex II, extending from Gibraltar in the south, along the Norwegian coast, including the Baltic Sea, as well as the UK and Ireland. The ESPH Technical Group, reporting back to PPR 13 in 2026, was tasked with further consideration of this proposal. 

Air pollution

Black carbon (BC)

PPR 12 reviewed the “polar fuels” concept based on five key characteristics for discussion: density, viscosity, carbon residue content, cetane index or number, and pour point. However, there was no consensus on recommending distillate fuels as “polar fuels”. ISO provided insights on defining a polar fuel standard and the impact of a proposed pour point requirement, concluding that a maximum 0°C pour point would have minimal global impact.

PPR 12 agreed to further work on the “polar fuels” concept at PPR 13, supported by scientific studies and BC measurement campaigns.

Discharge water from Exhaust Gas Cleaning Systems (EGCS)

PPR 12 discussed developing possible regulatory provisions on restrictions of discharge water from EGCS but noted that a global ban was outside the scope its work.

PPR 12 reviewed the terms of reference for the GESAMP Task Team on EGCS, with the aim of developing a methodology for emission factors to ensure a uniform evaluation of regional restriction areas. The draft terms were forwarded to MEPC 83 for approval, with an extension of the target completion year to 2026.

Review of the IBTS guidelines and amendments to the IOPP certificate and Oil Record Book

PPR 12 considered two proposals to amend MARPOL Annex I, aiming to introduce requirements that would recognize forced evaporation of oily bilge water as an acceptable disposal method. However, due to mixed support for the proposals and time constraints, this agenda item was deferred to PPR 13.

Note: The full statutory news article on PPR 12 by DNV can be found here.

 

Photo credit: CHUTTERSNAP on Unsplash
Published: 6 February, 2025

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