UK-based energy technology company Arq, and Oslo exchange-listed Hafnia have formed a technical partnership which aims to accredit and introduce coal waste derived Arq Fuel as a key blend component for marine fuels.
Arq has developed a technology that transforms coal waste into a micro-fine hydrocarbon powder (Arq Fuel), which can be blended into oil products to create stable dispersions. It also offers material benefits as a low sulphur blending component for IMO 2020 compliant marine fuels.
Under the partnership agreement, Hafnia will conduct trials using Arq Fuel on some of its vessels, the partners said.
After securing the required accreditations, trials scheduled for mid-2021 aim to confirm Arq Fuel’s compatibility for the approximately 450 vessels for which Hafnia procures fuels.
Commercial quantities of Arq Fuel will be made available in the US during the second half of 2021, through Arq’s exclusive marketing partner and investor, Vitol, via their tankage in St Rose, New Orleans.
Additionally, Arq says it is already advancing plans to establish further processing plants and blending facilities at key hubs in the US, Europe and Asia.
The agreement follows a series of successful tests which have demonstrated Arq Fuel’s performance as a marine fuel component that can be used without any changes to the existing supply chain and ship engines. Hafnia and Arq will now work together to optimise blends which meet environmental standards and maximise cost efficiencies.
Highlighting its ‘strong environmental credentials’, the partners say Arq Fuel produces a lower level of sulphur dioxide and nitrogen oxides than residual fuel oil alone. Additionally, Arq and Hafnia claim that, on a barrel for barrel basis, Arq’s largely mechanical production of low carbon fuel has been calculated to be over 40% more environmentally beneficial than producing the equivalent residual fuel oil.
Commenting, Arq CEO Julian McIntyre said the pathway to first commercial sales ‘will enable both companies to thrive and deliver outstanding customer value,’ while Hafnia Executive Vice President Ralph Juhl said the company was ‘optimistic that Arq Fuel will prove effective in helping Hafnia, and the shipping industry at-large, meet its GHG reduction targets.’