A new alternative bunker fuel is being developed by energy and commodities trading firm Vitol, coal mining firm Peabody Energy and London-based technology start-up Arq.
The trio entered an agreement on Wednesday to develop a low-cost mechanical process for treating coal as a micro-particle system to produce Arq Fuel that can be blended directly into oil products without the need for expensive liquefaction.
Vitol will blend Arq Fuel into fuel oil and crude oil and work to position the product as a low-cost blending component with specific customers by targeting consumers of fuel oil such as the shipping industry, while distributing the product globally.
The development saw Arq raise over $50 million of new equity at a valuation of over a half-billion dollars (US), including an initial investment of $10 million from each of Vitol and Peabody; the agreements envisage Vitol and Peabody investing further in Arq over the next three years.
“Arq fuels will be pure hydrocarbons – combining them with fuel or potentially with crude provides the opportunity for refiners and fuel customers alike to diversify into a new and cost-effective source of supply, whilst the production of Arq fuels also has a beneficial environmental impact,” said Mike Muller of Vitol.
“We are pleased to be able to exclusively offer our customers the option of accessing an innovative new fuel component which has the potential to materially improve their competitiveness.”
“It is an interesting technology with good potential. We’ll offer a range of solutions to help our customers comply with IMO 2020. There are many factors which will dictate which method of compliance is adopted,” Muller told Reuters in a report.
It noted Arq CEO Julian McIntyre indicating the new fuel will be able to help the shipping industry to cut costs.
He noted the new fuel will be produced and delivered at less than $10 a barrel of oil equivalent, and could take up for as much as 20 to 25% volume when blended into a barrel of fuel oil.
Photo credit: Peabody Energy
Published: 19 July, 2018
Move reinforces coalition’s ability to advise on and promote development of EU LNG port infrastructure to further accessibility and innovation in the sector.
Other participants in the project are Deltamarin Ltd as ship designer, Minerva Marine Inc. as vessel manager, and energy company Total as a charterer.
Ferry is the first ship in the world to run on methanol as a marine fuel as a joint project between Wärtsilä, Stena, and Methanex Corporation since late-March 2015.
Klarup brings more than 20 years of leadership experience from her time at BIMCO, THOME Group, Nordana, and WISTA across international shipping markets.
Joint development project includes utilising SOFC technology to replace at least one of three diesel generators typically on-board a Very Large Crude Carrier.
Four 16,000 TEU vessels will be built and delivered from the Korea Shipbuilding & Marine Engineering shipyard by mid-2025, states Korean Exchange filing.
Octamar™ Ultra HF, Octamar™ Complete, and Octamar™ F35C were found to have improved the fuel economy while reducing exhaust gas and other emissions of marine engines in a series of trials, states report.
Disposal of evidence has resulted in Singapore not being able to provide full details to the United Nationals Panel of Experts which sought information regarding the case, says Ministry of Foreign Affairs.
‘We are proud to be amongst the first to show the successful steps taken by Singapore’s bunkering ecosystem to remain forward thinking and relevant,’ Choong Sheen Mao, Director of EMF, tells Manifold Times.
‘With the launch of a common data infrastructure, Kenoil aims to continue achieving an end to end visibility and transparency on the bunker data supply chain,’ states Kenoil Managing Director.
Digitalization can help shipping achieve its decarbonization goals but only if human factors are considered enough when introducing smarter maritime operations with ‘user-friendly’ technology.
Anand S/O Omprekas, Noruliman Bin Bakti, and Muhammad Khairul Asri Bin Mohamad Hanafiah were tasked to verify the quantity of cargo supplied to vessels by Shell Eastern Petroleum Private Limited.
