GoodFuels and ITOCHU sign strategic partnership agreement to scale sustainable marine biofuel across Asia-Pacific
GoodFuels, the leading biofuels pioneer for the global transport industry, and ITOCHU Corporation, one of Japan’s largest general trading companies, have today announced a new partnership agreement to scale sustainable marine biofuel in Singapore, Japan, and Asia-Pacific.
ITOCHU is actively engaged in the wholesale, distribution, and bunkering of petroleum products in both Singapore and Japan, while GoodFuels specialises in the sourcing, development, production, and delivery of sustainable marine biofuels, with a presence in the Netherlands and Singapore. This new strategic partnership will enable the two companies to build the market and develop the supply chain necessary for the wider adoption of marine biofuel.
The long-term partnership, which was signed on 12 May 2022, will combine GoodFuels’ deep expertise in sustainable biofuels, extensive client and sourcing portfolio, and strong sustainable impact brand with ITOCHU’s mature trading and supply operations and developed client base. Under the partnership, GoodFuels will be mainly responsible for sourcing, production, technical expertise and brand marketing whilst ITOCHU will be responsible for logistics, blending and distribution. Both parties will share responsibilities in sales and marketing and work jointly towards scaling capabilities in production and sourcing.
GoodFuels and ITOCHU will initially focus on the supply of sustainable marine biofuels to all Singaporean territorial waters, waterways, and harbours, as well as prospective customers transiting the Strait of Malacca. Then, in the second phase of the partnership, the companies plan to scale up deliveries to the wider Asia-Pacific region, including Japan.
GoodFuels’ sustainable marine biofuels deliver an 80-90% well-to-exhaust reduction of CO2 emissions for oceangoing vessels. They require no technical changes to the tanks or engines and are produced from independently certified renewable feedstocks that cannot be used for any higher quality application or recycling.
Speaking on the announcement, Dirk Kronemeijer, CEO, GoodNRG Group, said: “As GoodFuels looks to further scale up its presence in Asia-Pacific and respond to growing demand for sustainable marine biofuels in the region, we knew that we had to find partners whose competencies and values match with our own mission to bring about a better world. This new, long-term partnership agreement with ITOCHU will help us to fulfil our joined ambitions and enable more shipowners in Singapore and Japan to immediately accelerate their decarbonisation efforts via our advanced marine biofuels.
“Moreover, ITOCHU’s expertise in the marine fuel market and experience with other low carbon marine fuel solutions will be invaluable as we look to enable two of the world’s most important maritime nations to deploy our advanced biofuels and reduce carbon emissions from shipping.
“Now, the next step begins. 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. 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.”
Ted Tanaka, Managing Director, ITOCHU Petroleum Singapore, flagship energy trading arm of ITOCHU, added: “Partnering with GoodFuels is a significant step forward to meet our customers’ needs for low carbon fuels. 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.”
Jing Xieng JX Han, General Manager GoodFuels Asia Pacific and manager of the partnership said: “We are excited to begin working together with ITOCHU to scale uptake of our sustainable marine biofuel in Singapore, Japan, and Asia-Pacific. This partnership will give us the distribution and sourcing power we need to service both our loyal existing and new local client base in the best possible way across Asia.”