Cargill and Hafnia Launch Seascale Energy to Supply Marine Fuel

Commodity trading giant Cargill and tanker owner Hafnia have joined forces to create a major new marine fuel supplier as the shipping industry braces for stricter emissions regulations.

The joint venture, Seascale Energy, will merge Cargill’s Pure Marine Fuels business with the Hafnia Bunker Alliance, which together supplied and delivered approximately 7.5 million tonnes of marine fuel last year. The new entity will initially handle similar volumes, with plans to scale up over time.

Between 2019 and 2023, ships consumed more than 1 billion tonnes of fuel, according to the International Maritime Organization (IMO), the industry’s global regulatory body. In the coming years, new rules are expected to reshape the market, which still relies heavily on petroleum-based products.

The European Union is pressuring shippers to adopt cleaner alternatives, while additional global measures are set to be agreed upon later this year.

Seascale Energy aims to provide access to innovations in sustainable fuels while securing more competitive pricing, the companies said in a statement.

In 2024, the average price of a popular marine fuel known as very low sulfur fuel oil (VLSFO) was approximately $550 per tonne in Rotterdam. At that rate, a 7.5-million-tonne supply would be worth over $4 billion.

“As both a shipowner and a bunker fuel consumer, you’re facing an increasingly complex procurement landscape,” said Hafnia CEO Mikael Skov. Seascale Energy will be “one of the largest services of its kind, backed by two major fuel users.”

The joint venture is subject to regulatory approval and is expected to launch in the second quarter.

Source: Bloomberg Linea

Sharing is caring!