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Furetank secures 10-year biogas bunker supply as step towards fossil-free shipping

Purchases at least 75% of produced fuel from Eskilstuna Biogas which will develop a new biogas plant producing around 5,000 tonnes of LBG annually.

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Swedish shipping company Furetank on Thursday (10 February) said it has signed a letter of intent with Eskilstuna Biogas, enabling the development of a new biogas plant producing around 5,000 tonnes of LBG annually.

Included in the plan is an intention Furetank committing to purchase at least 75% of the produced fuel for 10 years. The gas will be extracted from manure and food waste from the municipalities of Eskilstuna and Strängnäs. It is upgraded to a 100% waste-based, fossil-free and renewable biofuel, LBG.

“It feels fantastic to access liquefied biogas in Sweden. With LBG produced in the right way, we can run our vessels completely without emitting CO2 or harmful particles,” says Furetank’s CEO Lars Höglund.

“This is a strategic move. We developed the new efficient vessels, chose gas as a fuel and offset remaining emissions. Now we move on to securing our own supply of LBG.”

Multi-million state support

The biogas plant will be the largest environmental investment in Eskilstuna in 20 years and corresponds to almost 10% of the municipality’s total greenhouse gas emissions, according to Kaj Wågdahl, Eskilstuna Biogas AB Chairman of the Board.

The project receives approximately SEK 140 million in grants from the Swedish Environmental Protection Agency’s support for climate investments. An agreement with a large customer was a requirement for obtaining financing.

“In addition to these grants and public production support for biogas, a long-term agreement with a strong partner is required to make this big investment and achieve the large-scale biogas production that we are planning. It is also very gratifying to find a partner who sees business opportunities in leading the way towards climate neutrality,” says Kaj Wågdahl.

One step ahead for the ETS

Before giving the new plant the final go, the production support for biogas recently decided by the Swedish government needs to come into force and all permits need to be in place.

Production is planned to start in the last quarter of 2023, likely well-timed with the launch of the EU Emissions Trading System for shipping.

“We became the first shipping company in Sweden and second in the world to bunker LBG in 2018,” notes Lars Höglund.

“For us it was a statement; we want to head in this direction. Now we have a clear plan for the transition and are negotiating more contracts in Sweden and other European locations.

“It feels incredibly good. The whole organization enjoys being involved in pushing this development forward and showing that it is possible.”

 

Photo credit: Furetank
Published: 11 February, 2022

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Milestone

China: Chimbusco and BJEC enter green methanol cooperation agreement

Document was signed between Ding Lihai, deputy general manager of Chimbusco, and Li Jianjun, deputy general manager of BJEC.

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Chimbusco x BJEC MT

China Marine Bunker (PetroChina) Co.,Ltd. (Chimbusco) and POWERCHINA Beijing Engineering Corporation Limited (BJEC) on Thursday (3 July) formally entered into a green methanol strategic cooperation framework agreement.

The document was signed between Ding Lihai, deputy general manager of Chimbusco, and Li Jianjun, deputy general manager of BJEC.

BJEC, a subsidiary of China Power Engineering Group, is experienced in the survey, design, construction and technology research and development of large-scale renewable energy projects.

Moving forward, the two parties said they will respectively focus on their core advantages and work together to promote the production, supply, storage and refuelling of green methanol as an energy source to help support the low-carbon transformation of the shipping industry.

Ding Lihai said: “The shipping industry is one of the important sources of global carbon emissions. Promoting low-carbon fuel is the key to the transformation of the industry. As the main force in the supply of bunker fuel, Chimbusco has been committed to expanding its clean fuel supply capacity. The cooperation with BJEC will integrate the advantages of green energy development and fuel supply, accelerate the large-scale application of green methanol, and meet the needs of shipping companies for clean fuel. We look forward to providing effective solutions for the green transformation of the shipping industry through the joint efforts of both parties.”

Li Jianjun said: “Implementing the ‘dual carbon’ goal is an important responsibility of enterprises. BJEC has accumulated strong technical strength in the field of green energy. This cooperation with Chimbusco will focus on the entire industrial chain of green methanol, from raw materials, production to supply, to provide clean and sustainable fuel solutions for the shipping industry. The complementary advantages of both parties will promote the rapid development of the green methanol industry and inject strong impetus into the low-carbon transformation of the shipping industry.”

 

Photo credit: China Marine Bunker (PetroChina) Co.,Ltd.
Published: 8 July 2025

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Milestone

Towngas and Royal Vopak collaborate to expand green methanol supply chain network

‘Towngas has recently completed a 6,000-tonne green methanol bunkering project, the largest in Asia,” said its Chief Operating Officer – Green Fuel and Chemicals.

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Towngas x Royal Vopak MT

Hong Kong and China Gas Company Limited (Towngas) and Vopak China Management Co., Ltd. (Royal Vopak) on Tuesday (8 July) said both recently signed a strategic framework cooperation agreement to collaborate in areas such as green methanol production, storage, bunkering, and trading etc.

Focusing on the Chinese mainland, Hong Kong, and Asia-Pacific markets, both parties are joining forces to expand an efficient green methanol supply chain network and support the shipping industry’s low-carbon transition.

The two parties will capitalise on their respective strengths to expand the supply network of green methanol.

Towngas employs proprietary technology to convert agricultural and forestry waste as well as scrap tyres into green methanol, and has obtained multiple international certifications and provides a sufficient supply of green methanol for maritime fuel bunkering.

Royal Vopak provides green methanol storage and terminal services with its comprehensive storage and terminal infrastructure and coastal port network advantages.

Together, the two parties will achieve efficient resource allocation and ship green methanol to the Greater Bay Area, East China, South China, and the broader Asia-Pacific markets, further expanding the green methanol supply chain network.

Towngas and Royal Vopak will further develop multiple areas of regional cooperation, including in the Greater Bay Area. By leveraging the strengths of the ports in Hong Kong, Shenzhen, and Guangzhou, the partnership will focus on “production and storage synergy” as its core to strengthen cooperation around logistics and terminal facility construction, and to build an integrated green methanol storage and transportation network.

In East China, the two parties will centre their collaboration in Shanghai and Ningbo, two major international ports, to further strengthen cooperation in logistics storage and bunkering facility construction to meet the growing demand for green fuels at both ports.

In the Bohai Bay region, with Tianjin as the strategic hub, Towngas will transport green methanol produced at its northern China production base to Royal Vopak’s local storage tank farm, then achieve resource allocation through the Royal Vopak’s distribution network, supporting the supply of green methanol from northern China to the national and Asia-Pacific markets.

The two parties will also target key export markets, such as Singapore, Vietnam, Japan, and South Korea, to accelerate overseas expansion and boost the market competitiveness of clean energy in the Asia-Pacific region.

“Towngas has recently completed a 6,000-tonne green methanol bunkering project, the largest in Asia,” said Sham Man-fai, Towngas Chief Operating Officer – Green Fuel and Chemicals.

“It was completed with the support of Royal Vopak’s Tianjin storage tank farm facilities, laying a solid foundation for this partnership.

“Towngas’s Inner Mongolia green methanol plant is set to increase its annual capacity from 100,000 tonnes to 150,000 tonnes by the end of this year, with plans to further expand to 300,000 tonnes by 2028. Together with Royal Vopak’s storage and terminal services infrastructure and coastal port network, the two parties will build a comprehensive green methanol supply chain network.”

 

Photo credit: Hong Kong and China Gas Company Limited
Published: 8 July 2025

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Biofuel

Chimbusco Pan Nation bio bunker fuel supply volume in H1 2025 surpasses 2024 total

Company supplied over 78,000 metric tonnes of marine biofuel in Hong Kong in the first six months of 2025, surpassing its total biofuel supply for the whole of 2024.

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Chimbusco Pan Nation bio bunker fuel supply volume in H1 2025 surpasses 2024 total

Hong Kong-based marine fuel oil supplier Chimbusco Pan Nation Petro-Chemical (CPN) on Friday (4 July) said it has supplied over 78,000 metric tonnes (mt) of marine biofuel in Hong Kong in the first six months of 2025.

As such, the company said its biofuel volume for the first half of the year exceeded its total biofuel supply for the whole of 2024. 

“This record-breaking achievement highlights our commitment to sustainability and innovation in the maritime industry,” the company said in a social media post. 

“From January to June 2025, our team surpassed last year’s total, proving that dedication and excellence knows no limits—and exceeded 2024 by 80%!”

Manifold Times previously reported CPN setting a record for China’s largest B24 marine biofuel bunkering operation.

CPN delivered 6,300 mt of B24-VLSFO in Hong Kong to container ship XIN LOS ANGELES on 15 May. The supply exceeded CPN’s previous record of 5,500 mt delivered to the same ship in February 2025.

In April, the company also commenced supply of B30 biofuel in Hong Kong. 

Related: Hong Kong: CPN hits new record for China’s largest B24 biofuel bunkering operation
Related: CPN achieves largest B24 bio bunker fuel delivery in Hong Kong and China
Related: Chimbusco Pan Nation launches B30 bio bunker fuel supply in Hong Hong

 

Photo credit: Chimbusco Pan Nation Petro-Chemical
Published: 7 July, 2025

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