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
The pioneering vessel, Singapore’s first, is scheduled for delivery at the republic by December 2019.
Port of Frederikshavn commits to securing the necessary sustainable charging facilities in the port and its surroundings on the Danish side.
The inclusion of LBG comes on the back of requests from the shipping market as well as the company’s mission to make it easier to source cleaner fuels such as LBG, it said.
The Port of Rotterdam Authority supports initiative and actively encourages the use of alternative bunker fuels, partly through the Incentive Scheme Climate-Friendly Shipping.
TotalEnergies planning to reduce reliance on oil and to focus energy production growth on LNG, renewables and electricity over the next decade.
Nordic Green Ammonia-Powered Ship concept study brings together key players in the entire value chain for a green ammonia-powered gas carrier.
‘We are here to transfer the extremely valuable knowledge gained over the past six years to the maritime sector, such that our customers are comfortable in the use of such biofuels,’ states CEO Olivier Baiwir.
Newly appointed Anthony Mollet speaks to Manifold Times about his role, vision, value proposition and plans for the Marine Fuels Alliance to become a wide-reaching and engaging bunkering industry association.
SFP will be retrofitting VPT’s existing bunker vessel with its Full Electric Ready (FER) system and seeks to commission the vessel in the second quarter of 2022, CEO of SFP George Lee tells Manifold Times.
Equatorial Marine Fuel Management Services, Oldendorff Carriers, Lloyd’s Register and organisers took part in a Bunker Quality Claims Webinar moderated by Manifold Times on 10 November.
‘Though it did introduce temporary commercial and operational disruptions, we took a constructive view of the situation and chose to use this event as a learning opportunity,’ shares a Consort Bunkers spokesperson.
Gealubes Consulting & Trading, the authorised marine business distributor of PANOLIN EALs at Singapore port, shares a two-part education series on Environmentally Acceptable Lubricants on Manifold Times.
30 Nov 2021
