Ultra-low Sulfur Drop In Replacement for IFO380 Under Development

Altra-HF aims to be compliant with ECA regulations and an anticipated 0.5 percent sulfur cap in 2020.

Canadian bio-fuels technology company Altranex Corp. (Altranex) says it is developing a drop-in replacement for IFO380 bunker fuel that has a maximum sulfur content of 0.10 percent to meet both Emissions Control Area (ECA) regulations and an anticipated 0.5 percent sulfur cap in 2020.

"This could really be a paradigm shift for the industry, because no-one has been thinking in this direction," the company's founder and CEO Chad Joshi told Ship & bunker.

Currently, most ship operators are expected to switch to using diesel as tighter sulfur regulations come into force, which is significantly more expensive than heavy fuel oil bunkers.

Joshi says the company has already produced small quantities of the replacement fuel, Altra-HF, and is in the process of detailing its exact composition, with the goal being to meet the ISO8217 specification for current 380 cSt bunker fuels.

"The new fuel looks like the old fuel, only clearer," he said.

"We expect it to be less than 0.1% because the feedstock has almost no sulfur - its a plant oil."

Proprietary Process

Joshi explained that the company has developed a proprietary process to produce the fuel focussing on non-food plants.

Oxygen is removed during that process, and the molecules are built up to produce diesel or the replacement for fuel oil bunkers.

Removal of the oxygen addresses many of the storage issues associated with bio-diesel such as bacterial growth and seal degradation, and using the same process, the company can also make a winter-blend diesel fuel that remains liquid to 30 degrees below zero.

The company's aim is to scale up the process to pilot production capacity, then eventually licence the process to third parties.

"Our time-line really is by the end of the year we'll be testing this in engines," said Joshi, "but we've got a very good situation to get from where we are today, to the hundreds of tonnes per day needed for even the smallest supply contract."

Cost Competitive

While cash strapped shipowners are already struggling with rock-bottom rates and escalating costs, International Chamber of Shipping (ICS) chairman Masamichi Morooka said earlier this month that impending environmental legislation could cost the shipping industry more than half a trillion U.S. dollars between 2015 and 2025, much of which would come from the switch to low sulphur distillate fuel.

"We've got something that could solve the pain that the industry is feeling," said Joshi.

"Based on current costs now, we're projecting we'll be comparable to existing IFO380 prices at about $650 per metric tonne (pmt). It will certainly be less expensive than the ultra-low sulfur diesel (ULSD) they will have to buy."

Joshi added that the company was incorporated in January 2012, but has been incubating for 2-3 years.

"We have a partner, one of the big oil companies, and that's going to be instrumental in helping us design and scale up the process. That's what we're going to focus on in the next one to two years," said Joshi.

"Right now we're now looking for more people who are interested in the project - other oil companies, ship owners - to come in and help us."

Chad Joshi's contact details are as follows:

Canada: +1 613 767 9285
USA: +1 978 259 0100
Mobile: +1 613 483 2500
Email: cjoshi@altranex.com