Mitsui O.S.K. Lines, Ltd, (MOL), SINOPEC Zhejiang Zhoushan Petroleum Co., Ltd., and Marubeni Corp. have signed a Memorandum of Understanding (MOU) for the establishment of a long-term supply system for marine biodiesel fuel.
SINOPEC is China’s largest marine fuel supplier while Marubeni holds the top share in the marine fuel sales market for Japanese shipowners in China. MOL is a major Japanese global shipping conglomerate, operating one of the world’s largest merchant fleet.
The memorandum aims to establish a long-term and stable supply system for biodiesel fuel-a key alternative to heavy oil-through collaboration with SINOPEC and Marubeni in support of decarbonization efforts.
Under the MOU, MOL will work to expand the use of biodiesel fuel in China, while SINOPEC and Marubeni will develop infrastructure such as storage and transportation facilities and supply ports., and ensure the stable availability of biodiesel fuel.
Amid strengthening global environmental regulations and the accelerating trend toward decarbonization, the international shipping industry is taking the lead in efforts to reduce greenhouse gas (GHG) emissions. Biodiesel fuel, a “drop-in” alternative that can be used without modifying existing marine internal combustion engines, is gaining attention as an effective solution capable of significantly reducing CO2 emissions over its entire lifecycle compared to conventional marine fuels such as heavy oil.
To proactively advance decarbonization efforts in the biodiesel fuel sector, where future demand is expected to grow, MOL will collaborate with SINOPEC and Marubeni in China-a key supplier of biodiesel fuel feedstocks-to establish a long-term framework for biodiesel fuel supply and procurement at an early stage.
The MOL Group is advancing the adoption of clean fuels based on the environmental strategy in our management plan “BLUE ACTION 2035,” aiming to achieve net-zero GHG emissions by 2050. The MOU represents a significant milestone toward achieving that target. The group will promote the use of biodiesel fuel-a low-carbon energy source that can be adopted immediately-and contribute to the decarbonization and reduction of carbon emissions in marine transport.
