Maersk confirms deal to produce IMO 2020 fuel

Maersk confirms deal to produce IMO 2020 fuel

Maersk Oil Trading and Koole Terminals have announced the signing of an agreement to produce IMO 2020-compliant bunker fuel in Rotterdam.

Production of 0.5 per cent sulphur marine fuel will take place at the Petrochemical Industrial Distillation (PID) unit, located at Koole’s Botlek site at the Port of Rotterdam. The toll distillation deal allows Maersk to produce VLSFO bunker fuel and will enable Maersk to further expand its bunker supply volumes in Europe.

Annual production is expected to cover 5-10 per cent of Maersk’s annual fuel demand.

“The fuel manufacturing process allows Maersk to produce compatible low-sulphur fuels that complies with the IMO 2020 sulphur cap implementation, reducing the need to rely on 0.1 per cent price-based gasoil and fuel oil outside the ECA zones. Our activities with Koole will be an important driver in ensuring stable, reliable services for Maersk’s customers during a potentially volatile period for global shipping,” said Niels Henrik Lindegaard, head of Maersk Oil Trading at A.P. Moller – Maersk.

“Koole Terminals continues to explore opportunities to contribute to a sustainable society. One of the initiatives is to utilise our PID unit for producing environmentally friendly transportation fuels. We are proud to partner with Maersk and produce a low sulphur bunker fuel to support the reduction of sulphur emissions in order to reduce air pollution,” said John Kraakman, CEO of Koole Terminals.

The IMO 2020 0.5 per cent sulphur cap will be implemented globally from January 1, 2020. Bunker fuels within the ECA (Emission Control Area) zones will remain at the current cap of 0.1 per cent sulphur. Koole’s PID unit will also enable Maersk the possibility to produce such ECA 0.1 per cent sulphur fuel.