MOL, Sinopec and Marubeni line up China Biodiesel Bunkering Push

December 15, 2025

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Mitsui O.S.K. Lines has signed a memorandum of understanding with Sinopec Zhejiang Zhoushan Petroleum and Marubeni to build a long term marine biodiesel supply system in China. The plan is to turn China’s strong waste and biomass feedstock base into a stable bunkering network, with Sinopec and Marubeni developing storage, transport and supply ports while MOL channels demand from its own and other fleets. Because biodiesel can be used as a drop in blend in existing engines, any scalable supply chain like this has direct implications for fuel bills, CII scores and how owners position ships for upcoming carbon rules.

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MOL’s China biodiesel move in 30 seconds

MOL has signed a memorandum of understanding with Sinopec Zhejiang Zhoushan Petroleum and Marubeni to build a long-term marine biodiesel bunkering chain in China. The partnership aims to turn waste-based feedstocks into regular marine fuel supply at key Chinese ports, giving deep-sea fleets a scalable drop-in option for cutting emissions without new engine technology.

What is being built

Sinopec and Marubeni will develop storage, blending and delivery infrastructure so biodiesel blends can be offered alongside conventional bunkers, while MOL anchors demand through its own fleet and customers trading via China.

Fleet Impact

Because biodiesel can be used in existing engines, owners gain a practical lever to improve CII scores and future carbon compliance on Asia-focused routes, even though fuel costs remain above standard VLSFO and volumes will ramp up only gradually.

Port and market impact

Chinese hubs that host this supply chain strengthen their role as early low-carbon bunkering centers, and charterers and cargo owners get another way to specify lower-carbon voyages in contracts and tenders tied to China-linked trades.

Bottom line: the MOU signals that China is set to become a major source of marine biodiesel for international shipping, with direct consequences for where ships bunker, how decarbonisation is costed, and which fleets can offer verifiable emissions cuts on Asia routes first.

Item	Summary	Business mechanics	Bottom line effect
MOL China biodiesel partnership: what a new MOU means for fuel, CII and ports
Parties and deal outline	MOL, Sinopec Zhejiang Zhoushan Petroleum and Marubeni have signed an MOU to build a long term marine biodiesel supply system in China, targeting stable bunkering volumes for ships linked to Japanese and international owners.	MOL brings fleet demand and operational know how, Sinopec provides local fuel and terminal capability in Zhoushan and other Chinese ports, while Marubeni connects Japanese owner demand to Chinese supply through its marine fuel trading platform.	📈 Larger and more predictable biodiesel availability in a key region helps owners plan real decarbonisation moves, 📉 but it also locks more decisions into China linked supply chains and policy.
Scope and fuel type	The focus is marine biodiesel made from recycled biomass as a substitute and blend component for conventional heavy fuel oil and VLSFO, with the MOU aimed at a long term and stable supply system rather than a one off trial.	The partners are working toward regular bunkering of biodiesel blends for MOL vessels and other customers in Chinese ports, converting feedstocks such as used cooking oil and waste oils into marine grade fuel that fits existing logistics.	📈 Creates a pathway to cut tank to wake and lifecycle emissions without waiting for new engine designs, 📉 but exposure to biofeedstock markets means price swings and availability risk if demand spikes.
Storage, transport and ports	Sinopec and Marubeni will work on storage tanks, transport links and bunkering points at selected Chinese ports so biodiesel can be offered as part of normal marine fuel menus.	Building a dedicated chain for receiving, blending, storing and delivering biodiesel means coordinated investment in terminals and barge fleets and clear quality control to align with ISO fuel standards and class expectations.	📈 Ports that are early to host this infrastructure gain an advantage as green bunkering hubs and attract more calls, 📉 late moving ports may see some services or enrolment in green corridors pass them by.
Engine and operations fit	Biodiesel can be used as a drop in fuel or blend in existing marine diesel engines so fleets do not need new hardware to start cutting emissions on voyages in and out of China.	Owners can schedule bunkers that include a biodiesel blend on selected routes, integrate emission factors into voyage accounting and test how higher blends affect maintenance and performance over time, all while using current engine designs.	📈 Makes it easier to prove real emission reductions per voyage and support CII and FuelEU type compliance, 📉 but any fuel quality or compatibility issues can still translate into off hire and extra maintenance if not managed carefully.
CII and decarbonisation targets	MOL links the MOU directly to its Blue Action 2035 strategy and net zero target for 2050, positioning biodiesel as a near term tool to improve CII ratings and future carbon compliance.	With lifecycle CO2 reductions compared to heavy fuel oil, biodiesel usage can improve reported carbon intensity for voyages touching China and support customers that are managing Scope 3 emissions and EU style reporting duties.	📈 Stronger environmental metrics help protect charterability and access to green finance, 📉 but owners will still have to verify lifecycle data and accept documentation costs to count these benefits.
Fuel cost and price spread	Biodiesel remains more expensive than conventional fuel on an energy adjusted basis, even when sourced from waste streams, so any large scale adoption will need premiums to be justified by compliance and customer demand.	The trio can use scale benefits, Chinese feedstock depth and trading structures to narrow the spread, but customers may still pay extra for biodiesel blends, especially if these counts toward regulatory schemes and cargo owner ESG targets.	📈 Where carbon pricing or green premiums are available the partnership can unlock profitable low carbon bunkers, 📉 if incentives fall short the price gap could slow take up and limit volumes.
Competitive position in China	By pairing with China’s largest fuel supplier and a leading Japanese trading house, MOL is positioning itself early in what could become a large biodiesel bunkering market across Chinese coastal ports.	This strengthens relationships with domestic refiners and regulators, supports green corridor concepts in Asia and gives MOL a talking point when competing for long term contracts with shippers that want lower carbon freight.	📈 Early movers can secure better access to volumes and shape standards for documentation and blends, 📉 rivals may need to respond with their own fuel partnerships or risk being seen as followers on low carbon options.
Timeline and open questions	The MOU sets direction but does not yet publish specific port list, annual volume targets or firm start dates for large scale supply, leaving room for policy and market shifts to influence the roll out.	Progress will depend on how quickly infrastructure projects clear internal approval, how Chinese and international carbon rules treat biodiesel and how fast owners and cargo interests commit real volumes to new bunkering products.	📈 If detail and capacity follow quickly this can become a reference model for other regional biodiesel corridors, 📉 delays or unclear economics could leave the agreement as a signalling move rather than a volume game changer.
Notes: Deal details reflect public statements and trade press on the biodiesel MOU between MOL, Sinopec Zhejiang Zhoushan Petroleum and Marubeni. Specific ports, volumes and pricing structures have not yet been fully disclosed and may change as the partnership develops.

China biodiesel corridor: who gains from the new MOU

Turning recycled biomass into regular marine fuel supply in Chinese ports is not just a decarbonisation headline. It changes where ships bunker, how fuel contracts are written and who controls the next wave of low carbon volumes.

Fuel demand signal Growing interest

Large deep sea fleets are already trialling biofuel blends and want repeatable supply on Asia routes. A named partnership between MOL, Sinopec and Marubeni is a clear sign that owners expect workable demand for biodiesel bunkers in and out of Chinese hubs rather than one off pilot voyages.

Supply and infrastructure Build out phase

Sinopec and Marubeni bring terminals, barge fleets and trading desks that can turn used cooking oil and other waste streams into marine grade product at scale. The practical constraint is still how quickly tanks, blending lines and supply ports are built and certified.

Policy and compliance Rules driven

Stricter carbon intensity and lifecycle reporting rules are pushing owners toward fuels that count on paper as well as at the funnel. Biodiesel fits current engines so it can be used as a bridge option while the industry waits for more clarity on e fuels and future fuel corridors.

Near term (next 1 to 3 years)

Expect targeted biodiesel use on selected trades and ships that already report tightly on emissions. Volumes remain a fraction of total bunkers, but early adopters secure know how and relationships in China ahead of wider demand.

Medium term (toward 2030)

If infrastructure and feedstock keep pace, biodiesel and bio blends can become a regular line in bunker menus at key Chinese ports, competing with LNG and methanol as a decarbonisation option that uses existing engines.

Owners and operators

See a clearer route to blend biodiesel into existing deployment around China without waiting for newbuilds.
Gain more options for meeting CII and customer targets on Asia legs where conventional fuel alone would drag scores down.
Have to weigh higher fuel cost and documentation work against charter and cargo owner demand for lower carbon voyages.

Ports, traders and cargo interests

Chinese bunkering hubs hosting the new supply chain become reference points for low carbon fuel availability in the region.
Traders and logistics teams can begin to structure contracts that specify biodiesel blends and certified lifecycle emissions.
Cargo owners looking to cut transport emissions gain another practical lever when routing volumes through China linked corridors.

Snapshot based on public statements from MOL and reporting by specialist shipping and fuel market outlets as of mid December 2025. Detailed port list, annual volume targets and specific blend levels are still to be confirmed.

The China biodiesel MOU gives MOL, Sinopec and Marubeni a head start in turning waste-based fuels into a regular marine product rather than a series of trials. The details on ports, volumes and pricing will decide how quickly the partnership moves from announcement to real tonnes sold, but for shipowners and cargo interests the direction is clear: China is positioning itself as an early, large-scale supplier of drop-in biofuel for deep sea fleets, with direct implications for where ships bunker and how future decarbonisation choices are made on Asia-linked routes.

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