Cargill’s ambition is to be a catalyst in the pursuit of greenhouse gas neutral shipping. They work with fleet owners to invest in new technologies and share the economic risk by financing early adoption programs.
Using Cargill’s global network and decades of experience, they connect private companies, NGOs, technical partners, international organizations and government agencies to facilitate green shipping. Cargill’s operational scale allows them to help customers find efficient vessels for their cargo at competitive rates.
Cargill can help with the following innovative measures:
1. Wind-assisted propulsion
Cargill is exploring various wind-assisted propulsion (WAP) technologies as they believe wind can make a significant contribution to achieving decarbonization goals. Wind is a virtually marginal, cost-free fuel and the potential to reduce emissions, in addition to significant efficiency gains in ship operating costs, is significant.
Wind wings
Cargill and BAR Technologies’ groundbreaking WindWings innovation took to open waters in August 2023, testing for the first time new technology that could deliver advanced wind propulsion to commercial shipping. This revolutionary technology has the potential to decarbonize existing bulk freighters by up to 30 percent.
“A technology like WAP is not without risk, but as a market leader we have the courage to invest, take risks and share our lessons transparently. By doing this, we can help our partners in the maritime industry transition to a more sustainable future,” said Jan Dieleman, President of Cargill’s Ocean Transportation
Rotor sails
In July 2023, the TR Lady, a 2017-built 82,000 dwt bulk carrier, was successfully retrofitted with 3 rotor sails manufactured by Anemoi Marine Technologies. The vessel is on time charter to Cargill, and they also had the vessel on time charter during the planning and implementation phase of the project. Tufton and Cargill will continue to work together to maximize the benefits and potential of the rotors.
2. Green methanol fuel
A persistent problem hindering the drive to decarbonize shipping and adopt low-carbon to zero-carbon fuels such as methanol is the question of who will jump first. Taking the initiative is risky because the investment is extensive. But if no one does it, the technology never scales, the costs remain high, and so does the overall fear of jumping.
Earlier this year, Cargill decided to put an end to that “chicken and egg” problem by being one of the largest bulk shippers in the world behind some of the first methanol ships to enter commercial service. It is the first step towards our goal of 5% carbon-free ships on the oceans by 2030.
Green methanol fuel can eliminate CO2 emissions throughout its life cycle
In January 2023, Cargill collaborated with Japan’s Mitsui & Co. when ordering two dual-fuel Kamsarmax methanol bulk carriers. That deal was followed in April and June 2023 by a similar collaboration with Danish fleet owner J. Lauritzen, which ordered three more Kamsarmax vessels, backed by a seven-year minimum charter commitment from Cargill.
These ships will be delivered in 2025-2026 and will be the world’s first methanol-fueled bulk carriers to enter commercial service and help customers achieve their Scope 3 climate goals.
Although these ships can also run on conventional fuels, they will emit significantly less carbon and can even travel carbon-free on green methanol. Green methanol can be made in different ways: from biomass, or from green hydrogen in combination with carbon captured from a point source or from the atmosphere. With carefully selected raw materials hydrogen and carbon, it can be an effective way to bring green energy to the propeller.
3. Sustainable biofuels
Compared to conventional fuels, biofuels made from used cooking oil significantly reduce CO2 emissions. In shipping, they also have one major advantage over other alternative fuels: they serve as “drop-in” fuels and are seamlessly compatible with conventional ships without the need for any modification. In other words, they offer a practical way to reduce the climate impact of older ships and a tangible path to reducing emissions.
FAME biofuel
Since 2021, Cargill has offered FAME (fatty acid methyl ester) biofuel to ships traveling between Singapore and the ports of Rotterdam and Amsterdam in the Netherlands, one of the world’s most heavily used shipping lanes.
Biofuel offers a readily available solution without the need for additional investments or adjustments. With an end-to-end structure, we can reliably deliver FAME biofuel on one of the busiest routes in the world.
First chartering contracts recorded
The first “green” charter contracts (COAs) specifying the use of biofuels were concluded last year. Cargill worked with maritime certifier DNV to develop a reliable accounting method for carbon savings. Biofuels can be seen as a carbon bet because they reduce the actual carbon footprint of the shipping sector, unlike investments in offsets, such as forestry and renewable energy projects, which aim to reduce emissions elsewhere.”
Big advantage for Cargill
Cargill has a big advantage in biofuels because they have both a shipping business and a cooking oil supply chain. The used oils and food waste products used as raw materials are sourced from Cargill’s agricultural production and processing plant in Europe and processed into FAME biofuel at the company’s new facility in Ghent, Belgium.
The fuel is offered via Cargill Ocean Transportation to ships in the Netherlands and Singapore, one of the largest bunkering ports in the world. At each location, Cargill has partnerships with suppliers that operate bunker barges and blend the FAME with conventional fuels.
Combined with other fuel-saving measures, biodiesel can help ships reduce their CO2 emissions by up to 30%. Government policies such as the EU Emissions Trading System (ETS) are expected to help narrow the price gap between biofuels and conventional fuels. Meanwhile, companies across the economy must meet ambitious climate commitments. They are increasingly looking at shipping as a place to reduce emissions.
Source: Cargill