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
‘Bunker barges operate in very local areas so these vessels call at port very often which means it will be a good fit for women with families,’ states Elpi Petraki, President of WISTA International.
“Our Singapore branch is under preparation and is expected to start business at the republic before June 2023,” Managing Director Darcy Wong tells bunkering publication Manifold Times in an interview.
Development to supply B35 biodiesel blend officially takes effect on 1 February; local bunker suppliers will be able to deliver updated spec within March onwards, once current stocks of B30 avails run out.
VPS, Global Centre for Maritime Decarbonisation, Wilhelmsen Ship Management, and INTERTANKO executives offered a multitude of perspectives to 73 attendees during the VPS Biofuels Seminar, reports Manifold Times.
Headway will launch a new fuel supply system suitable for alternative bunker fuels such as hydrogen and ammonia; to focus on procurement and construction of carbon capture systems in 2023 following R&D.
Competition for FAME from aviation and road transportation sectors have resulted in some shipowners resorting to adopt more readily available CNSL blends as biofuel for vessels, explains Steve Bee.