TOKYO, Japan | December 11, 2025 – In a major development for Asia’s low-carbon marine fuels landscape, Mitsui O.S.K. Lines, Ltd. (MOL), SINOPEC Zhejiang Zhoushan Petroleum Co., Ltd., and Marubeni Corporation have signed a Memorandum of Understanding (MOU) to establish a long-term, stable supply system for marine biodiesel fuel in China.
The agreement brings together one of the world’s largest shipping companies, China’s largest fuel supplier, and the leading marine fuel marketer for Japanese shipowners operating in China, forming a powerful consortium aimed at accelerating the adoption of bio-based marine fuels across the region.
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A Strategic Partnership to Support Decarbonization
The collaboration focuses on creating a secure, long-term procurement, storage, and supply framework for biodiesel fuel, a “drop-in” alternative to heavy fuel oil that can be used in existing engines without modification. Marine biodiesel has gained significant attention for its ability to deliver meaningful lifecycle CO₂ reductions, making it a practical option for shipowners working toward net-zero targets.
Under the MOU:
Mitsui O.S.K. Lines, Ltd. (MOL)
- Will promote and expand the use of marine biodiesel fuel among its fleet and customers in China
- Will integrate biodiesel uptake into its broader fuel transition strategy under the BLUE ACTION 2035 plan, which targets net-zero GHG emissions by 2050
SINOPEC Zhejiang Zhoushan Petroleum
- Will develop and secure infrastructure such as storage tanks and transportation facilities
- Will ensure stable supply capability across designated ports in China
- Leverages its position as the country’s largest fuel supplier to scale biodiesel availability
Marubeni Corporation
- Will support the commercial side of the supply chain
- Will collaborate with biodiesel producers and feedstock suppliers
- Brings its leading market presence among Japanese shipowners operating in China
Rising Demand for Low-Carbon Drop-In Marine Fuels
With international shipping under increasing regulatory pressure, particularly through IMO 2023 measures and the forthcoming IMO 2027 decarbonization framework, biodiesel is emerging as one of the fastest-deployable alternative fuels.
Advantages driving adoption include:
- Compatibility with existing marine diesel engines
- No major retrofits needed
- Potential to reduce lifecycle CO₂ emissions significantly
- Strong feedstock availability in China and Southeast Asia
The partners aim to build the supply system early, anticipating rising demand from regional and international fleets that need low-carbon fuels but may not yet be ready for methanol, ammonia, or hydrogen propulsion.
Official Signing Ceremony
A signing ceremony was held with key representatives in attendance, including:
- Zhang Shu, Deputy Director, Zhoushan Municipal Bureau of Commerce
- Keiichi Tochimoto, General Manager, Petroleum & LPG Trading Department, Marubeni
- Tomotaka Ota, General Manager, Fuel GX Division, MOL
- Cheng Yasong, General Manager, SINOPEC Zhejiang Zhoushan Petroleum
- Xu Tao, Deputy General Manager, SINOPEC Fuel Oil Sales Co., Ltd.
The event consolidated the three companies shared commitment to building a reliable, commercially scalable biodiesel ecosystem in the world’s largest bunkering market.
Supporting MOL’s “BLUE ACTION 2035” Strategy
The initiative directly contributes to the MOL Group’s five key Sustainability Issues (Materiality), particularly “Environment — Conservation for Marine and Global Environment.”
MOL stated that biodiesel, as a readily available low-carbon option, represents a crucial step toward its 2050 net-zero ambition, complementing future fuels such as e-methanol, ammonia, and hydrogen.
Biodiesel: A Quickly Deployable Low-Carbon Solution
Biodiesel fuel is made from recycled biomass such as waste cooking oil and bio-based feedstocks. As a drop-in fuel, it requires no adaptations to existing marine internal combustion engines—making it one of the most deployable low-carbon fuels currently available to shipowners.
Because of this, many fleets are expected to use biodiesel blends as a practical transition fuel during the 2025–2035 decade as the industry progressively shifts toward more advanced alternative fuels.
Toward a Sustainable Marine Fuel Ecosystem in China
With China playing a central role in the supply of biodiesel feedstocks and bunkering volumes, the MOU marks an important step in building a reliable alternative fuels supply chain in East Asia.
The consortium aims to ensure that shipowners trading in and out of China can access consistent, verifiable, and scalable volumes of biodiesel—supporting both operational needs and regulatory compliance.
About Marubeni Corporation
Marubeni Corporation, a leading Japanese general trading company involved in diverse businesses including energy, chemicals, and logistics. In the marine sector, Marubeni holds the top market share in marine fuel sales to Japanese shipowners in China, making it an essential conduit between Japanese shipping demand and Chinese supply infrastructure. Its role is central to developing sustainable, low-carbon fuel supply chains.
SINOPEC Zhejiang Zhoushan Petroleum Co., Ltd.
SINOPEC Zhejiang Zhoushan Petroleum, a wholly-owned subsidiary of SINOPEC Fuel Oil Sales Co., Ltd., which is part of the state-owned China Petroleum & Chemical Corporation. It is recognized as China’s largest fuel supplier. The company is a crucial provider of bonded marine fuel and petroleum products in key Chinese bunkering markets like Zhoushan, and it is strategically expanding its focus to include green shipping fuels such as biofuels.
About Mitsui O.S.K. Lines, Ltd. (MOL)
Mitsui O.S.K. Lines, Ltd. (MOL), is a premier Japanese global shipping group operating a highly diversified fleet. The company is actively pursuing its “BLUE ACTION 2035” management plan, committing significant investment toward achieving net-zero GHG emissions by 2050 by pioneering the adoption of alternative and clean marine fuels.
Source: Mitsui O.S.K. Lines, Ltd. (MOL)