Singapore-based NYK Bulkship (Asia), part of Japanese shipping group Nippon Yusen Kabushiki Kaisha, has signed a contract of affreightment (COA) with Neste Shipping Oy, a subsidiary of Finnish Neste Oyj (Neste), for the ocean transportation of renewable diesel.
Under the deal, NYK Bulkship (Asia), the medium range (MR) product/chemical tanker operator, will be transporting the product from Singapore to North America.
In December 2020, the ship operator made the first spot contract for the ocean transportation of renewable diesel, and delivery of the cargo was successfully completed in February 2021.
Specifically, Neste Renewable Diesel (NRD) is produced from globally sourced wastes and residues such as waste animal fat, residues from vegetable oil, used cooking oil. It is reported that the chemical properties of the product are similar to those of fossil diesel. The product reduces greenhouse gas (GHG) emissions up to 90% compared to fossil diesel.
“NYK Bulkship (Asia) is aiming to further contribute to ocean transportation of renewable products including the Sustainable Aviation Fuel (SAF) such as NRD in accordance with the NYK Group’s ESG management strategy,” the company said.
On 3 February 2021, NYK announced the NYK Group ESG Story , which aims to further integrate Environmental, Social, and Corporate Governance (ESG) into the company’s management strategy and promote activities that contribute to the achievement of the Sustainable Development Goals (SDGs) through business activities.
To promote ESG management , the NYK Group will encourage new value creation as a sustainable solution provider through a business strategy that includes contributing to the stable supply of eco-friendly renewable diesel.