On 5th October, 2023, three companies, GS Caltex, POSCO and H-Line Shipping, inked MoU, to joint initiative in the biofuel space as part of their commitment to reducing carbon emissions in the shipping industry.
As explained, this partnership unites three critical elements of the global maritime logistics value chain: a petroleum company providing biofuels, a steel manufacturer responsible for raw material transportation, and a shipping conglomerate managing vessels.
POSCO plans to test out biofuel on one of its specialised bulk carriers under the operational supervision of H-Line Shipping.
The marine biofuel produced by GS Caltex has earned the “ISCC EU” accreditation for being environmentally friendly. The marine biofuels are made up of 70% high-sulfur fuel oil (HSFO) and 30% biodiesel made from spent cooking oil. Comparing biodiesel to conventional fuels, greenhouse gas emissions are reduced by 80%.
As informed, the International Maritime Organization (IMO) formally acknowledged the carbon reduction effectiveness of biofuels during its 80th Marine Environment Protection Committee (MEPC80) meeting held in London in July 2023.
The South Korean flag carrier HMM and GS Caltex have previously worked together to produce biofuels for the marine industry. In September, HMM said that during its experimental usage of marine biofuel in comparison to conventional fuels, it had reduced greenhouse gas emissions by 24%.
