BP to supply marine biofuels to New Zealand

BP has entered a long-term agreement with New Zealand transport company Strait NZ to supply marine biofuels to the port of Wellington from early 2024.

The oil major will supply a blend of 24% International Sustainability and Carbon Certification-approved used cooking oil methyl ester (Ucome) biodiesel and 76% very-low sulphur fuel oil (VLSFO). The blend can reduce lifecycle CO2 emissions by up to 20% as compared with standard marine fuel oil.

Biofuels are seen as a promising short-term drop-in solution to decarbonise shipping fleets without requiring extensive modifications to engines or infrastructure, unlike other longer-term options such as green methanol or ammonia.

The International Maritime Organisation adopted a revised greenhouse gas strategy earlier this month, aiming to cut emissions by at least 20pc, and preferably by 30%, by 2030 compared to 2008 levels, and reach net zero by or around 2050.