Mitsui O.S.K. Lines has signed a memorandum of understanding with SINOPEC Zhejiang Zhoushan Petroleum and Marubeni Corporation to develop a long-term supply system for marine biodiesel in China, aiming to support growing demand for low-carbon fuels.
Mitsui O.S.K. Lines (MOL) said on Friday that it has entered into an MOU with SINOPEC Zhejiang Zhoushan Petroleum and Marubeni Corporation to establish a stable, long-term framework for marine biodiesel supply in China. The agreement brings together China’s largest fuel supplier, a leading Japanese trading house, and one of the country’s major shipping firms as interest in low-carbon alternatives accelerates.
Under the plan, MOL will work to expand the use of biodiesel among vessels operating in China, while SINOPEC and Marubeni will focus on developing the necessary storage, transport and port-side infrastructure to ensure reliable availability. MOL said biodiesel is gaining traction as a drop-in replacement for heavy fuel oil, offering significant lifecycle CO2 reductions without requiring engine modifications.
The companies expect demand for biodiesel to rise as environmental regulations tighten and shipowners progress towards decarbonisation. MOL is positioning the partnership as an early move to secure supply chains for cleaner fuels under its BLUE ACTION 2035 strategy, which targets net-zero greenhouse gas emissions by 2050.
MOL described the MOU as an important step in scaling a fuel that can be deployed immediately to reduce emissions from marine transport.
