An electric vehicle manufacturer is stepping up to pay for biofuels in a new contract with Wallenius Wilhelmsen.
The Oslo-listed car carrier giant said on Wednesday that it came to an agreement with the unnamed car maker for land and sea services from Asia to Europe and North America.
Part of the agreement has the automaker paying for biofuels.
“We will prioritise customers who are looking to work with us both on land and at sea, and who share our ambition to reduce emissions in the supply chain,” said chief customer officer Pia Synnerman.
Wallenius Wilhelmsen entered 2023 with the intention of starting to use biofuels to power its fleet of 125 vessels.
It believes biofuels — which are virtually identical to traditional fuels, but are made from cooking oil or animal waste, while emitting less carbon — and carbon credits are key to greener shipping and intends to discuss their use with all existing and new customers.
It said that finding sustainable alternative energy sources is “still an unresolved issue” and biofuel is the only option to secure the transition away from fossil fuels.
Synnerman said electric automakers have similar ambitions: “The manufacturers of electric vehicles that we talk to have high ambitions to further strengthen their decarbonisation efforts.”
Wallenius Wilhelmsen did not disclose financial details for the deal, but said the rate reflects the current high demand levels.
Much like other shipping segments, observers of the car carrier sector are expecting continued market strength, thanks to a low orderbook and shifting trade patterns because of electric vehicle manufacturing growth in China.
