- Biofuel-Powered Shipping Gains Momentum in Wallenius Wilhelmsen’s Strategy.
- Leading Auto OEMs Partner with Wallenius Wilhelmsen for Net-Zero Shipping Goals.
- Wallenius Wilhelmsen Receives Biofuel Verification for Use of B100.
Norwegian shipping and logistics group Wallenius Wilhelmsen has signed two major multi-year shipping agreements with large auto OEMs, whose names are not disclosed, both of which will involve biofuel to help make freight transport more sustainable, reports Offshore Energy.
First Contract
The first deal worth around $263 million is three years long and will start in January 2025. This agreement will be on the Asia-to-North America route and will use Wallenius Wilhelmsen’s re-engineered bunker adjustment factor, BAF2.0.
BAF2.0
BAF2.0 captures fuel price fluctuation while combining various fuel types, including future net-zero fuels, into one charge. It provides predictability for fuel costs during the transition to sustainable alternatives.
Second Contract
The second contract is a two-year contract worth approximately $112 million. It starts in April 2025 and has a fixed surcharge specifically for biofuel use.
Supporting Decarbonization with Biofuel Adoption
Pia Synnerman, Chief Customer Officer at Wallenius Wilhelmsen, highlighted the significance of these agreements: “These agreements add to our contracted book of business and are a great testament to our customers’ commitment to ensuring more sustainable freight by investing in the use of biofuel when transporting their cars with us. We are dependent on forward-leaning customers who join us on the path to net zero.”
$1 Billion Contract Awarded in the First Half of 2024
Wallenius Wilhelmsen recently secured another major contract of more than $1 billion, earlier in 2024. This multi-year contract is with a leading premium car manufacturer and encompasses shipping, logistics, services, and the use of biofuel.
Implementation of Global Decarbonization Strategy
Wallenius Wilhelmsen is examining the feasibility of HSFO-biofuel blends and VLSFO biofuel blends as part of its commitment to decarbonization.
The company recently received its first biofuel insetting verification statement from the classification society DNV, which recognizes the use of B100 biofuel by the company.
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Source: Offshore Energy
