Cargill seeks to increase its use of biofuels in a fuel supply test and plans to order methanol-powered ships as part of its plans to reduce emissions, said a senior executive at global commodity trading today (5).

One of the world's largest ship charterers, Cargill has been testing the operational performance of biofuels in its vessels since the beginning of the year, as it intensifies efforts to turn green.

The test aims to increase the use of biofuels by ships to 50,000 tons by mid- or late 2023, up from 12,000 tons since January, the company's maritime fuel leader Olivier Josse said at a conference in Singapore.

"We're going to bring in some methyl fatty acid ester (FAME) and make some fourth-quarter blends in Singapore," he said, referring to biocontent mixed with fossil diesel to make biodiesel.

The move to mix FAME in Singapore aims to try to understand customers' demand and appetite for biofuels as fuel supply, Josse added at the event, SIBCON (Singapore International Supply Conference and Exhibition) 2022.

Cargill is also testing the use of methanol as a transport fuel, he said.

"We are in the bidding process for bifuel methanol ships that will be delivered in a few years."

Global maritime transport accounts for almost 3% of global CO2 emissions, as around 90% of global trade is transported by sea.

By 2050, the IMO intends to halve the sector's greenhouse gas emissions from 2008 levels.

Last year, Cargill said it has cut nearly 1.5 million tons of gross carbon emissions from its fleet since 2017.