NORDEN has acquired a minority stake in MASH Makes, a Danish-Indian biofuel scale-up that researches, develops, and produces renewable fuels from biomass waste.
This investment represents a strategic partnership where NORDEN secures access to renewable fuels, specifically biooil, at favorable pricing. The partnership positions NORDEN at the forefront of research and development in future renewable fuels, enabling NORDEN to also benefit from upcoming renewable biooil products once they are developed.
NORDEN and MASH Makes have been collaborating on biofuel utilization since 2021. Building on this collaboration and subsequent in-depth review of MASH Makes technical platform and business model, NORDEN gained insights into the viability and scalability of the MASH Makes biofuel platform.
NORDEN CEO Jan Rindbo stated, “We cannot solely rely on traditional offtake agreements with fuel suppliers to achieve the necessary speed of decarbonization demanded by climate change. We need to play a more significant role in the supply chain to ensure substantial volumes and attractive prices that can make NORDEN competitive in offering low emission freight solutions to our customers.”
Decarbonizing Customers’ Supply Chains: This investment aligns with NORDEN’s climate strategy of assisting customers in decarbonizing their supply chains and marks a natural progression in our biofuel journey. NORDEN was one of the pioneering shipping companies in 2018 to successfully trial 100% biofuel on a large ocean-going vessel.
Adam Nielsen, Head of Logistics & Climate Solutions at NORDEN, added, “With this investment, we are focusing on the next generation of biofuels and scaling up biofuel consumption. Biooil offers the advantage of compatibility with existing vessel technologies and serves as a bridge between transitioning from fossil fuels to carbon-free alternatives, which necessitates new vessel technologies.”
First Trial Scheduled for 2024: As a strategic partner, NORDEN’s role will involve aiding MASH Makes in introducing its biooil products to the marine fuel market and procuring biofuel for NORDEN’s fleet. The production of MASH Makes’ initial biooil product is in an advanced development stage, and the first trial is anticipated to take place onboard NORDEN vessels in early 2024. Additionally, it is expected that MASH Makes will progressively expand its production capacity and become a significant supplier to NORDEN’s fleet within the next three years, focusing on strategically important locations for the decarbonization of global tramp shipping.
MASH Makes CEO Jakob Andersen expressed, “We are both excited and honored that NORDEN, a uniquely capable player in the biofuel sector, has recognized the potential in our platform, leading not only to investment but also to strategic offtake and potential production site financing agreements with MASH. We believe that this partnership will greatly accelerate the ongoing scale-up of our business and set us on course to achieve our gigaton range greenhouse gas reduction target.”
Source Dampskibsselskabet NORDEN A/S