Marine fuel supplier John W Stone Oil Distributor has begun offering renewable diesel for vessels in the US Gulf coast.
The fuel will be supplied to international and domestic vessels as well as consumed by all of Stone Oil's own vessels. The company has been using the renewable diesel in several of its vessels, with a plan to convert the entire fleet within the next two months. Stone Oil's vessel fleet comprises 47 inland barges, 11 inland boats and three offshore units, which burn about 56,000 bl/year of marine fuel.
The company has committed a 100,000 bl tank in Port Fourchon, Louisiana, and 85,000 bl of tankage in Gretna, a suburb of New Orleans, Louisiana, for the initial storage and the distribution of the renewable diesel. The fuel can be delivered to vessels via barge or via ex-pipe. Stone Oil has a renewable diesel supply contract with a US Gulf coast refinery and has actively engaged additional suppliers. Stone Oil would not disclose the name of the US Gulf coast refinery due to an non-disclosure agreement.
The company is receiving enquiries for blended renewable diesel bunker lots. Although typical conventional marine fuel lots range between several hundred to 1,000 metric tonnes, the expectation of the lots for renewable diesel as a blend stock are expected to be smaller. International vessel owners' inquiries have been for renewable diesel blended with fuel oil or gasoil, while domestic US vessel owners are interested in pure renewable diesel. Stone Oil has seen interest from cruise lines, container ships, bulk carriers and tankers.
The renewable diesel meets ISO 8217/ ASTM D975 specifications and has International sustainability & carbon certification (ISCC) renewable diesel certification. It can reduce lifecycle greenhouse gas (GHG) emissions by up to 75pc compared with conventional fuels, the company said. "Initially the [renewable diesel] driver will be internal mandates rather than regulations, but the regulations will have a growing impact", Anthony Odak, chief operation officer of Stone Oil, told Argus.
Last week, the International Maritime Organisation (IMO) adopted a revised GHG emissions strategy. IMO members agreed to reduce GHG emissions by at least 20pc, and preferably 30pc, by 2030; by at least 70pc, and preferably 80pc, by 2040; and to net zero by 2050 from 2008 base levels.
