Swedish bunker firm ScanOcean has collaborated with Finland's Neste to launch a co-processed marine gasoil with 0.1 sulphur (MGO), comprising a bio-based feedstock and MGO.
The production of the fuel involves adding renewable raw material such as used cooking oil (UCO) early in the conventional refining process, and using mass-balance to attain similar energy characteristics to MGO. ScanOcean said that through this process, the new Neste MGO can reduce greenhouse gas (GHG) emissions by up to 80pc when compared with conventional MGO. ScanOcean confirmed to Argus that contracts are in place for regular supply of the new product, but did not disclose any counterparties.
ScanOcean told Argus that the price of the fuel is currently indicated at $1,700/t. Argus assessed the price of MGO at the ports of Skaw and Gothenburg at a weekly average of $918.80/t at the market close on 4 August, its highest since January.
ScanOcean also said that the new co-processed Neste MGO meets ISO 8217 specifications and is ISCC plus certified. The Neste MGO will be available as a bunker fuel on the Swedish east coast, starting today. The fuel will also be available at the Sodertalje ex-pipe facility.
Reducing GHG emissions has emerged as a priority for many shipowners following the International Maritime Organisation's (IMO) adoption of a revised GHG emissions strategy in July.
