The Port of Frederikshavn and Steeper Energy, along with Aalborg University have entered into a partnership to establish the world’s first biomass-based plant to produce a sustainable marine fuel. The plant will produce sulphur-free fully renewable fuel for the several thousand vessels passing through the port annually.
- “Based on our research plant at Aalborg University and Steeper Energy’s future pilot-scale plant in Alberta, Canada, the technical challenges and risk involved in a plant in Frederikshavn will be significantly reduced, paving the way for a full scale commercial plant in Denmark,” says Lasse Rosendahl, professor at Aalborg University, Department of Energy Technology.
New regulative will boost demand
A new regulative effectively reducing the permissible sulphur content in marine fuel to zero comes into effect as of January 1, 2015, in what is known as SECA regions – Sox Emission Control Areas. This will force fleet operators in regions such as the North Sea and the Baltic Sea to either install flue gas cleaning equipment on board, or switch to a sulphur-free fuel. With current options this corresponds to annual expenditure increases of several hundred million Euros.
According to CEO at the Port of Frederikshavn, Mikkel Seedorf Sørensen, the port could potentially serve a marine fuel market of at least 900,000 tons a year.
- “This will not only be significant for the future customers to the sustainable marine fuel, but will also create jobs and bring more traffic into the port,” says Mikkel Sørensen.
Some 100,000 vessels annually pass the strait around Skagen either south- or northbound, and several of these will seize the opportunity to acquire sulphur-free fuel here. He emphasizes, that the new fuel will be a drop-in fuel, and thus be able to mix into what may be in the tanks already.
The Danish Minister for Trade and European Affairs, Nick Hækkerup, welcomes the new partnership:
- “This is a great example of a public-private partnership with a huge potential both for the environment and for business and job creation. Therefore I am very satisfied that a Canadian company like Steeper taps into the strong Danish bioenergy cluster and cooperates with Aalborg University on the development of new sustainable energy solutions. Infrastructure is highly prioritized in Denmark and I am convinced that the Port of Frederikshavn will be the perfect setting for the planned production plant.”
Solid business case with room for extension
The size of the plant is initially set at around 50-100,000 tons fuel annually, and will only cover a part of the potential market. To produce this, 2-3 times as much wood will be sourced from locations such as Russia, the Baltic nations, Sweden, Finland or even Canada. This will be brought to the port by ship, making use of already existing biomass handling facilities at the port.
In the longer term a research effort will be directed at mixing in locally sourced feedstocks, such as short rotation coppice, manure and straw etc. The research plant at Aalborg University will analyze the consequences of mixing feedstock on product quality and operating conditions before implementing this in full scale.
- “Although the project will be established on a single feedstock, the plant design will accommodate the results of the research at Aalborg University. However, by building a solid business case on wood, we can focus on establishing a well-functioning plant delivering a sustainable marine biofuel. Once this has been achieved, we can start thinking about extending the input range as well as considering a wider product portfolio, if this seems opportune,” says CTO of Steeper Energy, Steen B. Iversen.
At this stage the project is still in an initial phase, where the main focus is to establish a well-founded business case and feasibility study. The next stage will involve seeking investors and partners for the engineering stage operation.