10/07/2022
Sustainable Transformation in Ocean Shipping
Insetting of sustainable marine fuel is a powerful tool to help companies reduce emissions from marine freight.
Insetting of sustainable marine fuel is a powerful tool to help companies reduce emissions from marine freight. To contribute to realize the climate goals of Grundfos, and of other pioneers in sustainable transportation, GEODIS has partnered up with GoodShipping to offer a sustainable fuel insetting services. Insetting refers to engaging in decarbonization projects within the value chain. This is different from offsetting which commonly reduces carbon outside the company’s value chain—insetting sustainable marine fuel addresses the problem at its root and stops additional emissions from ever being emitted.
When Grundfos and other shippers procure sustainable marine fuel for their ocean freight, the entire production chain of sustainable fuels is stimulated. New collaborations and business models can arise, starting from the companies that collect and recycle biogenic waste materials all the way to the refineries that produce the fuels and the companies that transport and deliver it to harbors and ships. Equally important is the increase of capital investments in refineries and fuel technologies which follow a rise in the demand for sustainable marine fuels.
By being an early adopter of alternative marine fuel services, Grundfos is raising the sails for a sustainable future for the shipping industry. This article will introduce Grundfos’ ambitions, GoodShipping, and what we do at GEODIS.
Grundfos – “Sustainability is at our core”
Transforming the marine transportation industry by shifting its dependency on fossil fuels towards alternative technologies requires shippers that are willing to develop more sustainable supply chain strategies and procure transformative services. One such company is pump manufacturer Grundfos, a global leader in water technology and water management. Grundfos was founded in Denmark in 1945 and today has more than 20,000 colleagues across the globe.
“Energy efficiency and sustainability are embedded in our DNA”, says Dirk van der Heijden, senior director of global freight at Grundfos. “Our products and solutions enable clean drinking water to people all over the world, every day. Being the global market leader within our industry, we feel an obligation to lead the way towards a more sustainable future. We do not only look at opportunities to through our products and solutions contribute to water and energy efficiency, we also committed to ensure that our supply chain contributes to our sustainable agenda.” Grundfos’ main objective is to solve water and climate challenges through the development of innovative products and by being committed to science-based target initiatives (SBTIs).
Dirk van der Heijden goes on to say “Grundfos ships more than 20,000 containers every year, and it is our ambition to do this in a more sustainable manner. Alternative marine fuels allow us to decarbonize, but more than that it is an investment in the technology necessary to deliver our services more sustainably to the market”.
Source: Grundfos
Sourcing of sustainable marine fuel
Sustainable marine fuel, insetted for Grundfos’ shipments, are supplied by the Netherlands-headquartered sustainable fuel company GoodShipping. Since 2015, GoodFuels, the parent company of GoodShipping, has developed and distributed sustainable marine fuel using their dedicated biofuel bunkering ship. The sustainable marine fuel from GoodFuels is a close-to-climate-neutral, biogenic substitute for fossil fuels. Rather than being refined from crude oil, the sustainable fuel is produced from renewable resources. The benefit of sustainable fuels is that they significantly lower the greenhouse gases, such as carbon dioxide, that are emitted to the atmosphere. Typically, the lifecycle greenhouse gases are reduced by 85%.
“The bio-components are mostly sourced in northern-western Europe and transported by barge to the production facilities”, says Johannes Schurmann, head of Operations and Supply at GoodFuels. “Only waste components, such as used cooking oil, tallow fats, and brown grease, are used in the production of advanced biofuels at GoodFuels’. Schurmann goes on to say, ‘All steps in the process are certified according to the ISCC (International Sustainability & Carbon Certification), including the full chain of custody, from the origin of the feedstock to intermediate storage and production facilities. Greenhouse gas intensity, feedstock type and feedstock origin are logged via the ISCC certification system for every batch of fuel. This gives the end user a clear picture on the emission savings of the fuel batch”.
GoodShipping together with GEODIS provide the insetting of sustainable biofuel for Grundfos and the necessary documentation to complete the insetting process. “Since pioneering the sustainable biofuel market in 2015, we have primarily focused on Europe. From early 2022 we are also operating from Singapore, the largest port in the world. And this is to properly serve globally operating shippers such as Grundfos that commit to a more sustainable shipping via sustainable fuels”, Schurmann finishes.
Source: GoodFuels
“It is a great challenge to develop the knowledge, infrastructure, and operational procedures around the world to ensure that GEODIS is the optimal partner for Grundfos in their sustainability strategy’, says Anika Möller, global key account manager for Grundfos at GEODIS. ‘Everything from state-of-the-art emission calculations and IT solutions to competitive sustainable fuel pricing is in our scope, and we are just beginning. With Grundfos and GEODIS operating together over 60 countries, we have regional and global processes in place. These processes will require continued refinement, and with customers like Grundfos committed, it is possible to keep building and improving our solution”
Is your company interested in learning more about sustainable marine fuel, insetting, or sustainable aviation fuel?
If you want to learn more about sustainability at GEODIS or learn more about Grundfos and their products and sustainability commitments, you can find the links below:
Sustainable Aviation Fuels, a new pathway to decarbonize
Grundfos to Reduce Emissions with GEODIS’ Alternative Fuel Offering
