Maersk and Wallenius Wihelmsen 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.
Shipping accounts for 2-3% of global CO2 emissions, a proportion that will only increase, propelling the industry to reduce its environmental impact.
However, the marine sector has different fuel requirements than trucking or aviation.
“Shipping requires bespoke low-carbon fuel solutions which can make the leap from the laboratory to the global shipping fleet. Initiatives such as the LEO Coalition are an important catalyst in this process,” explains Søren Toft, Maersk Chief Operating Officer.
Lignin is a structural bio-polymer that contributes to the rigidity of plants. Lignin is isolated in large quantities as a byproduct of lignocellulosic ethanol and pulp and paper mills. Currently, it is often incinerated to produce steam and electricity.
“Our customers’ ambitions on sustainability are increasing rapidly, and we applaud this development. Clearly, LEO would be a great step forward for supply chain sustainability, and it has the potential to be a viable solution for today’s fleet, and not just a future vision,” says Craig Jasienski, Wallenius Wilhelmsen Chief Executive Officer.
Companies are actively exploring ways 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.
Now, sea transport logistics will start to play a major role for companies like the BMW Group as it distributes all over the world. As the company fosters sustainability along the entire value chain the participating at the LEO project is a valuable commitment.
“Climate change is an ongoing reality and a key challenge to all industries, including fashion. We are aware of our responsibility to stay within the planetary boundaries and are committed to reduce our impact in every aspect of our value chain, including how our products are shipped to consumers around the world. This coalition gives us the opportunity to explore the development of a low-carbon fuel for shipping today,” Helena Helmersson, Chief Operating Officer at H&M Group states.
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.