The formalisation of an MOU, between Coastal Sustainability Alliance members Ken Energy and Green COP at Singapore Maritime Week 2024, aims to enhance Biobutanol use in maritime operations. From left to right: Ms Candy Tan, Director, Ken Energy; Mr Kenneth Lim, Assistant Chief Executive (Industry & Transformation), Maritime and Port Authority of Singapore; Dr Hanson Lee, Founder/CEO, Green COP. Photo credit: Ken Energy

S$10 million to be invested into development and production of biofuel blends

Commercial scale production expected by 2026

The Coastal Sustainability Alliance (CSA), an industry collaborative effort led by Kuok Maritime Group (“KMG”), announced its plans to advance the maritime biofuel ecosystem in Singapore with up to S$10 million in investments. This partnership will be spearheaded by two of its Alliance members – Green COP and Ken Energy – which formalised a Memorandum of Understanding (MOU) today at the Tech Stage (EXPO @SMW) at Singapore Maritime Week 2024.

Over the next two years, the CSA aims to develop stable B30, B40, and B50 biofuel blends and achieve production and commercial adoption of up to 50 percent (B50), derived from 50 percent agri-waste to Biobutanol – a blend poised to significantly reduce carbon emissions in maritime operations. 

This process includes biofuel certification, commencing sea trials, building a production plant by 2025, and launching commercial-scale production by 2026. An initial S$500,000 angel investment has been secured for establishing a pilot plant for processing agri-waste, and over S$10 million is expected to be invested in scaling production capabilities.

These efforts in decarbonising the maritime sector will contribute to the CSA’s efforts to build the next generation of Singapore’s coastal ecosystem and are timely to address the potential surge in demand for sustainable biofuels. 

Mr Tan Thai Yong, Managing Director, Strategic Projects and Technology, Kuok Maritime Group and Chairperson, CSA Council, said: “The formation of biofuel ecosystem under the Coastal Sustainability Alliance demonstrates our commitment to foster partnerships and deliver innovative sustainable maritime solutions for our conventional fleet owners as they progressively switch to lower emissions vessels. In bringing together Green COP and Ken Energy, we are laying the groundwork for a new biofuel supply chain and providing a viable alternative in the energy transition for the maritime sector. This initiative is more than an advancement in fuel technology as it exemplifies the power of collaboration, underscoring the CSA’s role as a steward and catalyst for positive change in the maritime industry.”

The CSA is actively driving maritime biofuel development to provide a viable biofuel alternative for vessels to reduce carbon emissions. The ecosystem will secure a ready supply of biofuel for local coastal demand and ensure the quality and stability of the biofuels with supply chain track and trace. This initiative also seeks to bolster Singapore’s standing in the Global Biofuels Alliance over the long term by building new R&D and innovation tracks in line with the nation’s environmental commitments.

Contributions by CSA members to the biofuel ecosystem

Through this partnership, Ken Energy will play a pivotal role in strengthening the market and commercial utilisation of Biobutanol in maritime operations. This comprises vital aspects such as operational feasibility, life cycle assessment, and carbon emission reduction strategies. Ken Energy’s expertise and resources will be instrumental in optimising the practical implementation of Biobutanol for a B30-B50 blend and subsequent market integration in providing B50 to its customer fleet of bunker barges and CSA members.

Desmond Chong, Managing Director of Ken Energy, said: “We believe in the green transition that the maritime industry is embarking on. This conviction underscores our strategic collaboration with Green COP. Leveraging our proficiency in marine transportation logistics alongside Green COP’s commendable sustainable biofuel production, we aim to spur the industry’s widespread adoption of biofuels.”

Green COP, with its proprietary technology, specialises in the efficient conversion of plant-based biowaste into sustainable biofuels through a patented pre-treatment and fermentation process. This innovative, cost-effective approach maximises resource utilisation and minimises waste generation, contributing to the circular economy and environmental sustainability. 

Dr Hanson Lee, CEO of Green COP, said, “Green COP presents existing fleet owners with a coherent biofuel solution to achieve their net-zero targets in a progressive manner. We envision a future where Sustainable Marine Fuels (SMF), alongside coastal electrification, become the norm. The CSA has provided us access to market insights, industry collaborations and the necessary incubation for our growth. We look forward to working with more like-minded partners to spur biofuels research and adoption.” 

Earlier in March 2024, Green COP signed an MOU agreement with 3Y Energy to develop and optimise green biofuel blends for the maritime and transportation sectors. Through this collaboration, Green COP will set up a pilot plant capable of processing a ton of biomass daily to produce sustainable fuels, while 3Y Energy will provide innovative solutions in green fuel utilisation, including biofuel blends. 

Introducing the B50 blend represents a significant advancement in reducing carbon emissions within the maritime industry. For every metric ton (mt) of B50 fuel burned, carbon emissions are reduced to 1.5 mt, a substantial improvement over the B30 blend, which reduces CO2 emissions to 2.1 mt per metric ton of fuel burned. Additionally, the production of Biobutanol, a key component of the B50 blend, is more energy-efficient and yields a higher volume of fuel compared to traditional methods used for producing Fatty Acid Methyl Ester (FAME). This enhances the sustainability of the fuel production process and supports the maritime sector’s transition to greener energy sources.

The CSA will continue to broaden the scope of the pioneering biofuel ecosystem and seek additional collaborations from stakeholders across the maritime and energy sectors to enhance technological, adoption, and logistical capabilities.  

Building a sustainable coastal ecosystem with biofuels and electric vessels

This development follows closely on the heels of the Coastal Sustainability Alliance PXO Electric Fleet Signing & MOU Ceremony, held on April 12, 2024. The event, graced by Guest-of-Honour Mr Chee Hong Tat, Minister for Transport and Second Minister for Finance, marked a key CSA milestone—the commencement of construction of the largest locally designed, built, and deployed electric tug and supply boat. Scheduled for deployment by 2025, the PXO electric fleet represents a pivotal step in the CSA’s broader strategy to enhance sustainability within the industry. These vessels will operate with the new biofuel options as part of a comprehensive approach to reducing the maritime industry’s carbon footprint.

Furthermore, the event also welcomed nine new CSA members, expanding the alliance to 27 members from the initial seven companies when it was formed in March 2022. The new CSA members, representing diverse sectors such as finance, green energy, corporate and environmental consultancies, and maritime services, exemplify the growing support network for advancing Singapore’s maritime decarbonisation efforts.

These new members – CIMC Energy Storage, DBS, Grant Thornton, Hanhwa Aerospace, KST Maritime, Marina Offshore, Paia Consulting, Siemens Energy, and Transport Capital – alongside the current members will be instrumental in propelling CSA’s next growth phase. This next phase will focus on green financing, ESG initiatives, vessel adoption, electrification, and technology enhancement for the coastal logistics ecosystem.