KPI OceanConnect to Apply Blockchain Technology to Bunker Carbon Offset Trading

Per Funch-Nielsen of AuctionConnect argues adding blockchain technology will make carbon offset procurement more transparent. Image Credit: KPI OceanConnect

Global hybrid marine fuels firm KPI OceanConnect is set to apply blockchain technology to the trading of bunker carbon offsets for the shipping industry.

The company is set to collaborate with accounting firm Deloitte and blockchain-based payments institution ZTLment on the project, it said in an emailed statement on Friday.

The firms intend to work together at the sixth International Blockchain School hackathon next month to develop a transparent, sustainable method for carbon offset transactions in the shipping industry.

"The shipping industry has a crucial role to play in the global transition to a low-carbon economy, which also means that the industry is seeing a lot of demands from customers, regulators, investors and credit institutions to reduce its climate footprint," Per Funch-Nielsen, director of KPI OceanConnect's digital marine fuels platform, AuctionConnect, said in the statement.

"The development of green fuels is a viable pathway towards decarbonisation for a sector at the heart of the energy transition.

"However, many alternative fuels are still in the early stages of development for widespread use in shipping globally.

"Along with biofuels, an immediate solution to reduce emissions is carbon offsetting.

"The inclusion of blockchain technology on our world leading digital platform for marine energy trading, allows us to link the flow of purchasing marine fuels and carbon offsets, to provide immutable proof of the transaction, the ownership of the carbon credit and the payment."