Maersk and Koole Terminals to produce fuel compatible with IMO 2020 regulations

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Maersk Oil Trading and Koole Terminals have announced an agreement to produce bunker fuel compliant with the regulations set by the International Maritime Organisation (IMO) for the marine sector. The IMO 2020 0.5% sulphur fuel cap, aimed at reducing sulphur fuel emissions by 80%, will be implemented globally as of January 1, 2020. Bunker fuels within the ECA (Emission Control Area) zones will remain at the current cap of 0.1% sulphur.

The production will take place at the Petrochemical Industrial Distillation (PID) unit, located at Koole’s Botlek site in the Port of Rotterdam, and Koole’s PID unit will also enable Maersk to produce ECA 0.1% sulphur fuel.

The toll distillation deal allows Maersk to produce Very Low Sulphur Marine Fuel (VLSFO) bunker fuel and will also 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 ability to produce its own fuel highlights Maersk’s desire to operate as an integrated logistics provider.

“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. Our activities with Koole will be ensuring a stable, reliable services for Maersk’s customers during a potentially volatile period for global shipping,” said Niels Henrik Lindegaard, Head of Maersk Oil Trading at A.P. Moller – Maersk.

“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.

Source: Maersk