Olam Agri and Vitol Bunkers have successfully completed Singapore’s first bio-bunkering operation using VLSFO co-processed with Cashew Nutshell Liquid (CNSL). The MV Scion Mathilda consumed 34.1 MT of the co-processed fuel during an international voyage, achieving verified savings of at least 120 tons of CO2eq without any operational compromises. This breakthrough refinery-stream methodology resolves historical compatibility issues, offering the risk-averse maritime sector a scalable, drop-in biofuel alternative ahead of tighter 2030 emissions regulations.
Singapore | August 20, 2026 – In a major milestone for sustainable maritime logistics, a collaborative initiative has successfully completed Singapore’s first bio-bunkering operation using Very Low Sulphur Fuel Oil (VLSFO) co-processed with Cashew Nutshell Liquid (CNSL), showcasing an innovative waste-to-energy approach. Supplied by Vitol Bunkers in Singapore, the lower-carbon footprint fuel delivered verified savings of at least 120 tons of CO2 equivalent (CO2eq) reduction on the voyage without requiring any added operational procedures or adjustments.
This operation marks a significant step forward in the search for practical, scalable alternatives to conventional marine fuels, demonstrating that meaningful greenhouse gas (GHG) reductions can be achieved with zero compromise to vessel performance or operational routine.
Proof of Concept for a Risk-Averse Sector
The successful deployment of this product, achieving verified greenhouse gas mitigation alongside strict operational integrity, serves as a definitive proof of concept. This milestone provides critical validation to a traditionally risk-averse sector, demonstrating that a previously disregarded bio-product solution can be both operationally viable and sustainable.
Martin Fynbo, Head of Bunkers, Ocean Freight Business, Olam Agri, said “The successful deployment of this product, achieving verified greenhouse gas mitigation alongside ensuring operational integrity, serves as a definitive proof of concept. This milestone provides validation to a traditionally risk-averse sector, demonstrating that a previously disregarded bio-product solution can both be operationally viable and sustainable. We thank the owner of the vessel Atlantic Lloyd, the vessel’s technical managers and Vitol for their cooperation and support in executing this trial. We look forward to deepening our collaboration.”
Sherman Yeo, Trading Manager, Vitol Bunkers, said “This operation proves that co-processed VLSFO can be delivered and consumed at sea without any compromise to vessel performance or operational routine. The mass balance solution we have developed opens up a genuinely new avenue for GHG reduction in marine fuels.”
Voyage Execution and Fuel Specifications
The bulk carrier MV Scion Mathilda was supplied with 246.5 metric tonnes (MT) of co-processed VLSFO at the Port of Singapore, comprising 212 MT of conventional VLSFO and 34.5 MT of co-processed CNSL VLSFO. The product was supplied by Vitol Bunkers and procured by Olam Agri’s ocean freight business.
The fuel was subsequently consumed during an extensive, multi-leg voyage route:
- From Caofeidian, China to Rotterdam, Netherlands.
- Followed by a ballast leg from Rotterdam to Barcarena, Brazil.
Total Voyage Fuel Consumption:
- VLSFO: 1,354 MT
- MGO: 101 MT
- Co-processed VLSFO: 34.1 MT
The vessel completed the entire voyage without any operational remarks, confirming the product’s flawless performance under real-world maritime operating conditions.
Verified GHG Performance
The co-processed VLSFO carries an impressive GHG intensity of 2.02 gCO2eq/MJ, delivering direct savings of at least 120 MT CO2eq compared with conventional VLSFO on an equivalent basis. Crucially, this outcome was accomplished with zero additional onboard handling, storage modifications, or special fuel treatment requirements.
A Breakthrough in Bio-Bunkering Technology
Vitol’s advanced co-processing and mass balancing methodology successfully resolves a longstanding bottleneck in the use of CNSL as a marine biofuel:
- Overcoming Historical Hurdles: Direct physical blending of raw CNSL has historically been dismissed by the shipping industry due to material compatibility, storage stability, and handling complications.
- Refinery Integration: By co-processing CNSL directly within the refinery stream, Vitol has established a commercially viable pathway for CNSL to contribute meaningfully to GHG reduction in shipping.
- Seamless Interchangeability: The co-processed VLSFO conforms strictly to standard RMG380 VLSFO grade specifications, possessing the exact same chemical composition and quality as conventional marine fuel. This eliminates the need for additional regulatory permissions, specialized crew training, or special clauses in charter party agreements.
Looking Ahead: Scaling Underutilized Feedstocks
As global GHG reduction requirements on the shipping sector intensify toward 2030, competition for sustainable bio-feedstocks with land-based sectors like road transport and aviation is projected to increase significantly.
CNSL, derived naturally as a by-product of cashew processing, represents an underutilized, non-food-competing feedstock with genuine potential as a scalable marine biofuel component. This landmark trial proves that with the right chemical processing and mass-balance approach, alternative bioproducts can be seamlessly integrated into existing bunker supply chains without supply disruption or vessel downtime.
About Olam Agri
Olam Agri is a differentiated and market-leading global agribusiness focused on high-growth end consumption markets. Its extensive food, feed, fibre, agri-industrials, and ag-services span more than 30 countries worldwide.
Operating at the heart of global food and agricultural trade flows, Olam Agri works directly with farmers and commercial customers to seamlessly connect local origins with global destinations. Backed by a powerful global origination footprint and advanced processing capabilities, the company transforms essential agricultural commodities to create sustainable value for customers. Through these efforts, Olam Agri enables farming communities to prosper sustainably while addressing the evolving consumption, food security, and environmental challenges shaping the modern agricultural landscape.
About Vitol Bunkers
Vitol Bunkers specializes in providing energy solutions to the maritime sector. Building on Vitol’s long-standing presence across global bunkering markets, it supplies bunker fuels to ship and fleet owners around the world. Vitol is a leader in energy and commodities. Vitol produces, manages and delivers energy and commodities to consumers and industry worldwide. In addition to its primary business, trading, Vitol is invested in infrastructure globally, with $13 billion+ invested in long-term assets.
Vitol’s customers include national oil companies, multinationals, leading industrial companies, and utilities. Founded in Rotterdam in 1966, today Vitol serves its customers from some 40 offices worldwide. Revenues in 2025 were over $340bn.
Source: Olam Agri | Vitol Bunkers