Dutch producer GoodFuels has signed a cooperation deal with Japanese trader Itochu to drive sales of biofuels in Asia.

The partnership aims to “accelerate” the market for sustainable low-carbon bunkers in Singapore, Japan and across the wider region.

Itochu is active in the distribution and bunkering of petroleum products in Singapore and Japan.

GoodFuels specialises in the sourcing, development, production and delivery of sustainable marine biofuels, with a presence in the Netherlands and Singapore.

“This new strategic partnership will enable the two companies to build the market and develop the supply chain required for wider uptake of marine biofuel,” the partners said.

Jing Xieng Han, general manager of GoodFuels Asia Pacific, told TradeWinds all options are on the table as to where and how it will produce the fuel for Asia.

“Setting this part of our strategy is part of the first phase of the partnership,” she said.

“Together, GoodFuels and Itochi will examine different options to scale up supply and expand the production of GoodFuels’ unique advanced sustainable biofuels in Asia-Pacific.

“We are actively considering the merits of each option but, ultimately, all decisions will be based on our commitment to offering the best possible products and service to our customers.”

Under the partnership, GoodFuels will be mainly responsible for sourcing, production and technical expertise, while Itochu takes care of logistics, blending and distribution.

Both parties will share sales and marketing responsibilities.

The initial focus will be on supplying biofuels in Singapore.

The second phase will target Japan, as well as the wider region.

GoodFuels says its biofuels deliver an 80% to 90% well-to-exhaust CO2 reduction.

Chief executive Dirk Kronemeijer said: “As GoodFuels looks to further scale up its presence in Asia-Pacific and respond to the growing demand for sustainable marine biofuels in the region, we knew that we had to find partners whose competencies and values match with our mission to bring about a better world.

“Now, the next step begins. Today, we call on the industry, our clients and partners to join us in making the market for low-carbon marine fuels in Asia, above and beyond the pace of regulation.”

Ted Tanaka, managing director of Itochu Petroleum Singapore, said the cooperation is a significant step towards meeting customer needs for low-carbon fuels.