Tuesday, November 5, 2019

Low Carbon Oil Targeted by Shipping and Automotive Groups

Manufacturers and Retailers Interested in LEO low carbon
Shipping News Feature

WORLDWIDE – AP Möller - Maersk and Wallenius Wilhelmsen have joined forces with customers such as BMW Group, to explore the use of LEO (Lignin Ethanol Oil), a low-carbon fuel that could be part of the future solution for sustainable shipping.

By popular agreement shipping accounts for 2-3% of global CO2 emissions, a proportion that is set to increase as global trade continues to grow at a sluggish but steady pace. As such, this industry accepts generally that it has an urgent need to reduce its environmental impact.

Maersk and Wallenius Wilhelmsen have teamed up with Copenhagen University and major customers including BMW Group, H&M Group, Levi Strauss & Co. and Marks & Spencer to form the LEO Coalition, which will explore the environmental and commercial viability of LEO fuel for shipping.

Lignin is a structural bio-polymer which contributes to the rigidity of plants. Lignin is isolated in large quantities as a by product of lignocellulosic ethanol at pulp and paper mills. Currently, it is often incinerated to produce steam and electricity.

Leading companies in many sectors are actively exploring solutions to reduce emissions along their entire value chains, as part of the global recognition of the importance of sustainably meeting the world’s demand for goods. This very much includes the transportation and logistics sector which delivers those goods.

Sea transport logistics plays an important role for the BMW Group´s vehicle production and distribution processes all over the world. As the company fosters sustainability along the entire value chain the group perceives its participation as part of the LEO project as a valuable commitment.

Copenhagen University is currently running the laboratory-scale development of this potential marine fuel. The project aims to move into phase II, testing the fuel on actual vessel engines, in the second quarter of 2020. Following a successful phase II, phase III will begin the scaling up of LEO fuel production.