Olam Agri and Vitol Trial Cashew-Based Marine Fuel in Singapore

Olam Agri and Vitol Bunkers have completed what they say is Singapore’s first bunker delivery of very low sulfur fuel oil (VLSFO) co-processed with cashew nutshell liquid (CNSL), using an agricultural waste product to create a lower-carbon marine fuel.

Vitol supplied a total of 246.5 tonnes of fuel to the 82,000 dwt kamsarmax Scion Mathilda. The delivery consisted of 212 tonnes of conventional VLSFO and 34.5 tonnes of VLSFO co-processed with CNSL. The fuel was purchased by Olam Agri’s ocean freight division.

According to the companies, the vessel consumed 34.1 tonnes of the co-processed fuel while sailing from Caofeidian, China, to Rotterdam, followed by a ballast voyage to Barcarena, Brazil.

The fuel recorded a greenhouse gas intensity of 2.02 gCO2eq/MJ. Olam Agri and Vitol said its use resulted in savings of at least 120 tonnes of CO2 equivalent compared with conventional VLSFO. Importantly, the alternative fuel did not require any additional handling or treatment onboard the vessel.

The use of cashew nutshell liquid is significant because the feedstock has previously attracted scrutiny when directly blended into marine fuels. Testing company CTI-Maritec and marine insurer Skuld have previously reported cases involving fuels containing high concentrations of CNSL-related phenolic compounds. Problems associated with these fuels included sludging, blocked filters, injector issues and deposits.

Vitol is taking a different approach by co-processing the cashew-derived material as part of the refinery stream instead of directly blending it into the finished marine fuel. The resulting product meets the RMG380 VLSFO grade. Olam Agri and Vitol said it has the same chemical composition and quality as conventional fuel. This means vessels do not require special onboard treatment to use it, while additional charterparty provisions are also unnecessary.

Vitol launched its co-processed VLSFO product in 2025. Initial production took place at the company’s Fujairah refinery, which has a capacity of 100,000 barrels per day.

According to the energy trader, the co-processing method allows waste-derived and other sustainable feedstocks to be incorporated during the refining process rather than being added to the finished bunker fuel through blending.

The vessel involved in the trial has since changed ownership. The 2024-built Scion Mathilda was purchased by Nasdaq-listed Castor Maritime for $41.9m in June. Following the acquisition, the kamsarmax was renamed Magic Saturn.

The trial comes as sales of alternative marine fuels continue to increase in Singapore, the world’s largest bunkering hub. Alternative marine fuel sales reached 1.95m tonnes in the city-state during 2025, compared with 1.35m tonnes in the previous year.

Vitol Bunkers was also ranked among Singapore’s five largest suppliers of biofuels during 2025.