Emission-fighting IMO 2020 fuel supply deal

Koole’s Botlek site Production will take place at the Petrochemical Industrial Distillation (PID) unit at Koole’s Botlek site in the Port of Rotterdam. Image: Maersk

IMO 2020-compliant bunker fuel will soon be produced at a European port to help tackle ship emissions.

An agreement between Maersk Oil Trading and Koole Terminals will see production take place at the Petrochemical Industrial Distillation (PID) unit, located at Koole’s Botlek site in 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% 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% price-based gasoil and fuel oil outside the ECA zones,” Niels Henrik Lindegaard, head of Maersk Oil Trading at A.P. Moller – Maersk, said. “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.”

“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 in order to reduce air pollution,” said John Kraakman, CEO of Koole Terminals.

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

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