Biofuel partnership

The long-term partnership, signed on 12 May 2022, will combine GoodFuels’ expertise in sustainable biofuels with ITOCHU’s trading and supply operations, enabling the two companies to build the market and develop the supply chain necessary for the wider adoption of marine biofuel.

“Today, we call on the industry, our clients and partners to join us in making the market for low carbon marine fuels in Asia, above and beyond the pace of regulation,” said Dirk Kronemeijer, chief executive, GoodNRG Group.

“At the same time, we will continue to work with governments and port authorities in the region to support them as they scale up measures that lay the pathway for truly sustainable low carbon fuels.”

Under the deal GoodFuels will be responsible for sourcing, production, technical expertise and brand marketing whilst ITOCHU will be responsible for logistics, blending and distribution. Both parties will share sales and marketing responsibilities and work jointly towards scaling up production and sourcing.

“Partnering with GoodFuels is a significant step forward to meet our customers’ needs for low carbon fuels,” said Ted Tanaka, managing director, ITOCHU Petroleum Singapore, flagship energy trading arm of ITOCHU.

“We will steadily respond to the changing environment from a customer-oriented perspective by working with GoodFuels to build an integrated supply chain for sustainable marine biofuels.”

The partnership will initially focus on the supply of sustainable marine biofuels to all Singaporean territorial waters, waterways and harbours, as well as customers transiting the Strait of Malacca. In the second phase, the companies plan to scale up deliveries to the wider Asia-Pacific region including Japan.