ScanOcean and Neste Provide New Biofuel Bunker Product in Sweden

The companies are making the product available at ports along the Swedish east coast, as well as at the Södertälje ex-pipe facility for vessels in transit into Lake Mälaren. File Image / Pixabay

Swedish marine fuel supplier ScanOcean and Finnish refiner Neste have brought a new biofuel product to the Swedish bunker market.

Neste's '0.1 Co-processed' product is a DMA MGO refined from a combination of bio-crude and fossil crude oil, the companies said in an emailed statement on Monday. The new product conforms to ISO 8217 specifications, has the ISCC plus certification and delivers up 80% lower lifecycle GHG emissions than conventional DMA MGO.

The product currently costs about $1,700/mt, a company source told Ship & Bunker. That compares with MGO at $943/mt at Gothenburg on Friday, according to Ship & Bunker data.

The companies are making the product available at ports along the Swedish east coast, as well as at the Södertälje ex-pipe facility for vessels in transit into Lake Mälaren.

"We already have several interested clients, and we look forward to start delivering this product," Jonatan Karlström, managing director of ScanOcean, said in the statement.

"This is one of many key steps in ScanOceans journey to build a portfolio of sustainable products and services.

"As we soon enter a new regulatory landscape in European shipping, reducing emissions at low cost will be key and we aim to provide the best solutions for this, and the DMA co-processed with renewable raw materials is an extremely attractive fuel in this respect."

Demand for biofuel bunker blends is increasing as shipowners take them on as a drop-in replacement for conventional fuels with a lower carbon footprint, allowing them to reduce GHG emissions without investing in new ships capable of running on other alternative fuels.