Maersk And Koole Terminals Sign Production Agreement for IMO 2020 Compliant Fuel in Rotterdam

Maersk And Koole Terminals Sign Production Agreement for IMO 2020 Compliant Fuel in Rotterdam

September 09th 2019

“Dutch storage company, Koole Terminals, and Maersk Oil Trading recently announced signing an agreement for the production of IMO 2020 compliant bunker fuel.”

Leaders in their separate fields, Koole Terminals, and Maersk Oil Trading recently announced its joint agreement deal to cater for the production of IMO 2020 compliant bunker fuel. The production agreement is set to also go on at the Petrochemical Industrial Distillation (PID) unit. This unit is situated at Koole’s Botlek site which is part of the Port of Rotterdam.

From 2020, the IMO’s 2020 Sulphur fuel cap of 0.5% is set to be executed globally. The compliance for fuel cap came into actuality as an approach to reducing the emissions of Sulphur oxide released from the ship’s combustion process. The agreement also seeks the usage of heavy fuel oils in decreasing the harm to the environs and humans in general. Bunker fuels comply with this goal, as it falls under the Emission Control Area (ECA) and will continually have a 0.1% cap.

CEO of Koole Terminals, John Kraakman, says “Koole Terminals continues to explore opportunities to contribute to a sustainable society. One of the initiatives is to utilize 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 to reduce air pollution.”

With few months left for the 2020 Sulphur cap to attain global enactment, the toll distillation arrangement is projected to let Maersk produce VLSFO bunker fuel. This production would further be expanding Maersk bunker supply volumes in Europe. Also, its yearly production is anticipated to cover within 5% to 10% of the annual demand fuel from Maersk.

Head of Maersk Oil Trading at A.P. Moller, Niels Henrik Lindegaard, added “The fuel manufacturing process allows Maersk to produce compatible low Sulphur fuels that comply with the IMO 2020 Sulphur cap implementation, reducing the need to rely on 0.1% 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,”

The IMO Sulphur cap set to be globally executed on the 1st of January 2020, mandates ships to use fuel with fuel cap of 0.5% or less in m/m of Sulphur except there is the installation of scrubber. In the past, Maersk has shown preference to the usage of alternate fuels over scrubbers. It recently unveiled plans to installing cleaning systems for exhaust gas to a few of its vessels. In early 2019, Maersk tankers noted it would be installing scrubbers into four LR2 vessels. These four vessels are part of the Tanker fleet for Maersk’s Product.