Idemitsu Kosan to be first Japanese refiner to supply biofuels to shipping industry
- Japan's first oil refiner to begin supplying biofuel blends to ocean-going vessels; total supply to include domestic vessels to reach 5,000 tons by March 2026
Idemitsu Kosan Co., Ltd. has partnered with Kanematsu Corporation to become the first Japanese oil refiner to supply biofuel blends, a blend of heavy oil and FAME, to ocean-going vessels. This initiative will utilize the marine shipping facilities of Kanematsu Yuso Co., Ltd. to establish a biofuel supply system. Idemitsu has begun supplying biofuel to shipping companies such as Kawasaki Kisen Kaisha, Ltd., and aims to supply a total of 5,000 tons of biofuel blends by March 2026, including to coastal vessels. This will contribute to the decarbonization of the shipping industry.
The shipping industry is rapidly shifting to fuels with lower greenhouse gas emissions, driven by factors such as the International Maritime Organization (IMO)'s greenhouse gas reduction targets.
In response to this trend toward decarbonization in the shipping industry, NYK conducted operational trials for coastal vessels in Hokkaido from 2023 to 2024 to commercialize biofuel, which is expected to reduce CO2 emissions by approximately 20% compared to conventional marine fuels. Hokkaido's cold climate presents challenges, such as fuel solidification due to low temperatures. However, we confirmed that biofuel enables stable operation under the same equipment and operating conditions as conventional vessels. As a next step, we will begin supplying biofuel to coastal and ocean-going vessels using the offshore shipping facilities at Kanematsu Oil Tank's Kokura Oil Tank Yard (Kitakyushu City, Fukuoka Prefecture). NYK and Kanematsu have obtained ISCC certification for the production and supply of this biofuel. This allows us to supply certified biofuel by using FAME that meets ISCC certification standards.
Going forward, in light of trends in demand for bio-blended fuel, we will consider transitioning to a supply system that utilizes our marine shipping facilities, which can accommodate increased supply. Furthermore, in addition to bio-blended fuel as marine fuel, we aim to establish a domestic supply system for e-methanol*5, a fuel produced using CO2 as a raw material.
Through the supply of both fuels, we will contribute to the decarbonization of the shipping industry.
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