Low carbon fuel grant boost

Low-carbon fuel developer XFuel has secured a €4.1 million grant to build a modular production facility in Catalonia capable of turning waste marine oils into drop-in marine gas oil.

The award, announced on 27 May, comes from Catalonia’s Nuclear Transition Fund, which is managed by the regional business agency Acció. The fund is intended to support investment and employment in communities affected by the planned closure of the Ascó and Vandellós nuclear power stations.

XFuel said the proposed plant would process about 16,000 tonnes a year of waste oils and produce approximately 14,000 tonnes of lower-carbon marine gas oil. The project is expected to create 35 jobs in the region.

The company has selected a site within reach of the ports of Tarragona and Barcelona, as well as Sagunto and Valencia further south. XFuel said this location would help reduce the transport required to bring in feedstocks and distribute finished fuel to maritime customers.

The grant was the second largest awarded through the programme and XFuel said its application received the highest score among applicants. It was secured in competition with larger established companies.

The project centres on XFuel’s proprietary Chemical Liquid Refining process, known as CLR or “CLEAR”. The company describes this as a single-stage refining technology that converts waste and residue hydrocarbon liquids into transport fuels that can be used in existing engines and fuel infrastructure.

For shipping, the main commercial attraction is the prospect of reducing lifecycle greenhouse gas emissions without requiring vessels to install new fuel systems. Drop-in fuels can therefore offer operators a nearer-term option while new fuels, engines and bunker infrastructure continue to develop.

However, the company says, the environmental performance of any waste-derived fuel depends on the origin and treatment of the feedstock, the energy used in production and the methodology applied to calculate lifecycle emissions. Regulatory acceptance and traceability will also be important as shipowners seek to demonstrate compliance with the EU Emissions Trading System, FuelEU Maritime and future IMO requirements.