Energy supermajor BP has invested $10m in WasteFuel, a California-based biofuels company, to research the potential of bio-methanol in hard-to-abate sectors like shipping.
BP said that solid waste production totals about 2bn metric tons annually and would increase to 3.4bn metric tons by 2050.
According to the company, WasteFuel’s deployment of anaerobic digestion and methanol production technologies will convert municipal and agricultural waste into viable lower-emission alternatives to traditional fuels, like bio-methanol.
“In hard-to-abate sectors, such as shipping, bio-methanol has the potential to play a significant role in decarbonization. Maritime transport represents around 90% of trade worldwide, whilst producing 3% of global greenhouse gas emissions. In the effort to reach net zero, some of the biggest companies in the shipping industry are converting to methanol-ready ships,” BP explained.
The supermajor is already working on establishing supplies of lower-carbon alternative fuels for the shipping sector and will look to bring WasteFuel’s bio-methanol to the market.
“Achieving decarbonization in shipping will require a step change, and biofuels have a key role in helping the industry decarbonize,” Gareth Burns, VP of BP Ventures, stated.
WasteFuel plans to develop multiple bio-methanol plants around the world in collaboration with local strategic partners including waste companies. The company already has a plethora of investors, one of them being shipping giant Maersk which is now joined by another giant.
Its first project will most likely be in Dubai and BP and WasteFuel already have a deal in place for BP to offtake the produced bio-methanol and to cooperate on the optimisation and improvement of bio-methanol production.
“BP is in action to produce more biofuels, aiming to deliver around 100,000 barrels per day by 2030, to help decarbonize transport. Investments like this are important as we strive to reach net zero and help our customers decarbonize too,” said Philipp Schoelzel, VP of next-generation biofuels at BP.
“As companies who are reliant on shipping work to reduce their greenhouse gas emissions, it is essential that we dramatically expand the availability of these fuels,” Trevor Neilson, co-founder, chairman, and CEO of WasteFuel, concluded.
Extracted in full from:BP and WasteFuel to explore bio-methanol use in shipping – Splash247
