Danish owner-operator Norden has doubled down on its commitment to using bio-oil bunkers in the future by buying a stake in a biofuels production company.
The firm said it has bought a minority stake in MASH Makes, a Danish-Indian biofuel scale-up, which researches, develops and produces renewable fuels from biomass waste.
The strategic partnership will give Norden access to bio-oil fuel at what it called “favourable pricing” and give the company a hand in the research and development of renewable bio-oils that it could use in the future.
Norden plans to help MASH Makes bring its bio-oil products to the marine fuel market, as well as supplying biofuel for its own fleet. The shipowner was one of the first shipping companies to successfully trial 100% biofuel on a large ocean-going vessel in 2018.
“We cannot rely solely on traditional offtake agreements with fuel suppliers to achieve decarbonisation at the necessary speed that climate change requires,” Norden CEO Jan Rindbo said in a release on Wednesday.
“We need to be a greater part of the supply chain, to both ensure significant volumes and attractive prices that can make Norden competitive in offering low-emission freight solutions to our customers.”
Norden said it expects to conduct the first trial of MASH Makes’ first bio-oil product onboard one of its vessels in early 2024.
After that, it said it hopes MASH Makes can gradually ramp up its production and become a “significant supplier” to the Norden fleet within the next three years in locations that are strategically important for decarbonising shipping, which could potentially include financing production sites.
Norden has been collaborating with MASH Makes on biofuels since 2021 as part of its decarbonisation strategy. It said ultimately made the decision to invest in the platform after gaining insight into its viability and scalability.
Adam Nielsen, Norden’s head of logistics and climate solutions, said Norden is getting serious about the next generation of biofuels and scaling up consumption.
“The benefit of bio-oil is that it can be used in existing vessel technologies and bridge the gap between transitioning from fossil fuels to carbon-free fuels, which requires new vessel technologies,” he said.
Jakob Andersen, CEO of MASH Makes, said his company was “excited and humbled” by Norden’s equity investment.
“We believe that this partnership will greatly accelerate the continued scale-up of our business and put us on track for our gigaton-range greenhouse gas reduction target,” he commented.
Earlier this year, Norden completed its first-ever acquisition of a business in its history when it bought Thorco Projects.
Other big-name owners have also bought stakes in vendors that can help them tackle their emissions in future. Product tanker firm Torm last year purchased a stake of 75% in ME Production, a Danish industrial company that builds exhaust gas cleaning scrubbers.
