Swire Shipping rolls out biofuel-based inset model

Singapore-based shipping firm Swire Shipping will use B24 blends to cut greenhouse gas (GHG) emissions from its vessels and issue insets equivalent to the savings.

IMAGE: The Swire Shipping-owned container vessel Tonga Chief. Swire Shipping

Swire Shipping will bunker three of its container ships with biofuel blends, mainly 24% biofuel (B24) blended with 76% conventional fuels.

Two of the vessels, Apia Chief and Tonga Chief, operate between Southeast Asia and the Pacific Islands, including Papua New Guinea, the Solomon Islands, New Caledonia and Fiji.

The third vessel, Kokopo Chief, sails every 10 days on a route connecting Singapore, Dili, Darwin and Surabaya.

“The vessels currently bunker B24 in Singapore enroute to the South Pacific,” the company said.

Swire Shipping will then allocate credits equivalent to the GHG savings from the biofuels used on these vessels to its customers, using a book-and-claim mechanism.

“Emissions savings are calculated based on comparisons with reference fossil fuels on an energy equivalent basis, using independently verified data,” the company said.

The emission reduction math

A book-and-claim supply chain model allows cargo owners to purchase emission reduction credits from shipowners that have already invested in low- or zero-emission fuels.

Cargo owners can claim reductions across their Scope 3 supply chain emissions even when their goods are physically transported on fossil-fuelled vessels, as long as they pay a premium for the service.

By Konica Bhatt

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