XFuel and De Dietrich partner on engineering, design for C2 plant commercialisation

Sustainable drop-in fuels producer XFuel on Thursday (17 July) announced it is working with De Dietrich on the engineering and design of XFuel’s first commercial C2 modular plant using its Chemical Liquid Refining technology (CLEAR). 

When operational, the plant will be able to process up to 16,000 metric tonnes (mt) of MARPOL Annex I sludge into 14,000 tonnes of low-carbon Marine Gas Oil (MGO) for use in the maritime industry.

The deal covers end-to-end support, including integrated ATEX, SIL and HAZOP safety studies, as well as complete 3D modelling of the entire plant. De Dietrich’s role will include a comprehensive engineering design, encompassing process flow, piping and instrumentation. 

XFuel and De Dietrich have commenced a front-end engineering and design process to plan the construction project. The C2 plant will incorporate a skid-mounted and modular concept design, enabling enhanced flexibility in feed and product options.

Approximately 10 million tonnes of sludge are offloaded in ports each year as vessels dispose of waste oil residue. Often the sludge is unsuitable for re-use and in most cases it is incinerated on-board to no benefit to the vessel and with a negative environmental impact. 

With a single C2 plant, CLR technology can deliver today a new, scalable, drop-in and low-carbon fuel at a competitive price, a decarbonisation option previously deemed unattainable. The fuel can be blended with traditional MGO to provide carbon savings that support vessel compliance with FuelEU Maritime and expected IMO regulations.

Thomas Gunther, CTO of XFuel, said: “The shipping industry faces a long pathway to net-zero, with key questions still surrounding the timeline and availability of alternative low-carbon fuels. Our partnership with De Dietrich is a significant step—bringing our CLR technology to market at scale, where it’s needed, without delay. It marks a major step forward: applying circular economy principles to marine decarbonisation while keeping costs affordable.”

Ricard Gené, CTO at De Dietrich, said: “Since our inception in 1684, we have always strived to facilitate innovation in industry with our expertise and technology critical to take great solutions and deliver them at scale. Our partnership with XFuel means we’re playing an important role in making decarbonisation a reality by putting circularity at the heart of the shipping industry.”

Recently, XFuel has secured EUR 7.7 million in blended finance from the European Innovation Council (EIC), enabling it to bring its fuel-from-waste technology to the transport market. This investment follows XFuel’s success in signing MoUs and LoIs with container lines and towage solutions providers for off-take agreements.

Photo credit: XFuel
Published: 21 July, 2025