Japan’s Mitsui O.S.K. Lines (MOL) has signed a memorandum of understanding with China’s largest fuel supplier Sinopec and Japanese trading company Marubeni to set up a long-term supply system for biodiesel fuel used in ships, reports Container News.
Under the agreement, the three companies will work together to ensure a steady and reliable supply of biodiesel in China. MOL will encourage the use of biodiesel in shipping, while Sinopec and Marubeni will help develop storage facilities, transport systems and fuel supply ports.
The move comes as the shipping industry faces stricter environmental rules and increasing pressure to reduce greenhouse gas emissions. Biodiesel is seen as an effective alternative to conventional marine fuels, as it can be used in existing ship engines without any changes. It also helps cut carbon emissions over its full life cycle compared with traditional heavy fuel oil.
MOL said demand for biodiesel is expected to rise in the coming years and pointed to China’s importance as a major supplier of raw materials used to make biodiesel. The company said the agreement would help create an early and stable fuel supply system in partnership with Sinopec and Marubeni.
The deal also supports MOL’s environmental goals under its “BLUE ACTION 2035” management plan, which aims to achieve net-zero greenhouse gas emissions by 2050.
MOL said the MoU is an important step towards wider use of low-carbon fuels and reducing emissions across global shipping operations.
