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Olam Agri, Vitol Bunkers Complete Co-processed VLSFO Bio-Bunkering

August 20, 2026

© Olam Agri
© Olam Agri

Olam Agri and Vitol Bunkers have successfully completed Singapore’s first bio-bunkering operation using Very Low Sulphur Fuel Oil (VLSFO) co-processed with Cashew Nutshell Liquid (CNSL), showcasing a waste-to-energy approach. The operation marks a step forward in the search for practical, scalable alternatives to conventional marine fuels, and demonstrates that meaningful greenhouse gas (GHG) reductions can be achieved without any change to vessel operations.

MV Scion Mathilda was supplied with 246.5 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 a voyage from Caofeidian (China) to Rotterdam (Netherlands), followed by a ballast leg from Rotterdam to Barcarena (Brazil). Total fuel consumption across the voyage comprised 1,354 MT of VLSFO, 101 MT of MGO and 34.1 MT of co-processed VLSFO. The vessel completed the voyage without any operational remarks, confirming the product's performance in real-world conditions.

The co-processed VLSFO carries a GHG intensity of 2.02 gCO2eq/MJ, delivering savings of at least 120 MT CO2eq compared with conventional VLSFO on an equivalent basis. This outcome was achieved with no additional onboard handling or fuel treatment requirements.

Vitol's co-processing and mass balancing methodology resolves a challenge in the use of CNSL as a marine biofuel. Direct blending of CNSL has historically been dismissed by the industry due to material compatibility and handling issues. By co-processing CNSL within the refinery stream, Vitol has opened a commercially viable pathway for CNSL to contribute to GHG reduction in shipping.

The co-processed VLSFO used in this operation conforms to RMG380 VLSFO grade and has the same chemical composition and quality as conventional fuel, eliminating the need for additional permissions or special clauses in charter party agreements.

As GHG reduction requirements on the shipping sector intensify toward 2030, competition for sustainable bio-feedstocks with road transport and aviation will increase significantly. CNSL, derived as a by-product of cashew processing, represents an underutilized feedstock with potential as a scalable marine biofuel component. 

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