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UED and Neutral Fuels partner to deliver maritime biofuel in Port of Fujairah

In the United Arab Emirates (UAE), Uniper Energy DMCC (UED), part of the Germany-headed international energy company Uniper SE and Dubai-based biodiesel producer Neutral Fuels LLC, a subsidiary of UK-headed The Neutral Group, have announced that they will collaborate to provide maritime biofuel in the Port of Fujairah.

The Port of Fujairah with its strategic location on the UAE  East coast, at the crossroads of shipping lines between East and West, offers an important hub for their activities towards the markets of the Indian sub-continent and East of Africa. It is the only multi-purpose port on the Eastern seaboard of the UAE. Initial Construction of the Port started in 1978 as part of the economic development of the UAE. Full operations commenced in 1983. The port has two oil terminals with a combined throughput capacity of 40 million tonnes per annum (photo courtesy Port of Fujairah).

Uniper Energy DMCC supplies over 4 million tonnes of very low sulfur fuels (0.5 percent VLSFO) globally from its storage located in Fujairah and Singapore – two of the world’s largest bunkering hubs, and award-winning Neutral Fuels pioneered the commercial viability of net-zero biofuels to replace fossil fuels.

The two companies will blend UED’s VLSFO and Neutral Fuels biofuel, creating a maritime fuel that meets the International Maritime Organization (IMO) standard under the ISO8217:2010 RMG380 specification, thereby cutting emissions of carbon dioxide (CO2).

The collaboration is aimed to address climate protection, the predominant social issue in the world today. UED’s mission is to help countries build up reliable and environmentally friendly energy supplies to support a global transition to cleaner energy. Collaborating with Neutral Fuels enables us to accelerate our efforts, said Lars Liebig, Managing Director of UED.

Limiting sulphur in shipping fuels to 0.5 percent as mandated by the IMO reduces a significant source of atmospheric pollution while cutting carbon emissions enables the maritime industry to become part of the solution to climate change rather than remaining part of the problem.

UED is already supplying up to 500 000 tonnes of VLSFO per month from its processing plant in the Port of Fujairah, the world’s third-largest bunkering hub. We will leverage our logistics infrastructure and global customer base, which stretches from the Middle East over South/East Africa, and up to India, Singapore, and China. The fuel will be available for large tankers and containers, and for smaller short sea and feeder vessels, Lars Liebig said.

For Fujairah terminals that are not currently connected to the grid, biofuel can also be used instead of fossil fuel in diesel generators, producing clean, green electricity and contributing to decarbonisation.

It is fitting for the UAE to lead the way in making maritime biofuel widely available to the shipping industry. The UAE was quick to adopt the UN’s sustainable development goals and has been particularly active in working to cut emissions of CO2. This is the main culprit that creates greenhouse gases (GHG) which cause climate change, said Gary Hubbard, Chief Commercial Officer of Neutral Fuels.

Neutral Fuels has been manufacturing and supplying biofuel for a decade across the Gulf Cooperation Council (GCC).

We started with large vehicle fleets like the McDonald’s logistics operation and grew into the construction industry, working with clients such as Expo 2020. In February this year, a month after the new IMO regulations came into place, we started supplying maritime biofuel and have proven its benefits across all operational, financial and environmental parameters. Partnering with UED now is the natural next step for us, Gary Hubbard said.

Switching to the new clean, green maritime fuel requires no capital outlay, no change to existing engines, and no investment in aftermarket scrubbers for shipowners and their cargo-owning clients.

Neutral Fuels biofuels are made exclusively from used cooking oil (UCO) and have no land-use issues, they are not in competition with food production, and do not cause or support deforestation.

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