BP to back new ship fuel made from municipal waste

British company BP is investing in California-based startup WasteFuel, which converts municipal and agricultural waste into sustainable energy, including biomethanol for shipping. The oil giant will invest 10 million USD (219,2 million Kč) in the company, Bloomberg reported.

Ships carry more than 80 percent of the volume of global trade, and shipping is responsible for nearly three percent of human-caused carbon dioxide emissions. Methanol is one of the leading candidates to replace oil-based marine fuel, on which the global commercial fleet currently depends. Depending on how it is produced, methanol can significantly reduce overall carbon dioxide emissions and has already attracted major investments from shipping giants A.P. Moller-Maersk A/S and CMA CGM. However, it has a lower energy content than oil, meaning that more of it would need to be stored on board.

WasteFuel CEO Trevor Neilson said the company had chosen Dubai for its first project. He did not provide details about future production volumes. The company has plans for further expansion, however, and a preliminary agreement with BP under which it will take the biomethanol produced. BP will also work with WasteFuel to improve how much biomethanol can be produced from waste.