June 15, 2023

Danish Company and Daikin will Use Renewable Fuels for Transportation

"Renewable Diesel (RD)," a renewable fuel made from waste cooking oil and other materials, is expanding. A.P. Moller - Maersk (Denmark), the world's second-largest container shipping company, has partnered with Daikin Industries to reduce carbon dioxide (CO2) emissions during land transportation. Corresponds to the requirement for reductions in "Scope 3," which refers to greenhouse gas emissions throughout the supply chain.

Maersk outsources the land transportation of containers to domestic carriers. Since October 2021, contracted carriers have used RD in Yokohama and parts of Kawasaki City. This spring, Daikin began a project to offset the CO2 reductions from this truck transportation with CO2 emissions from transport over the same distance. The reduction in CO2 emissions would be 4.5 tons. The company intends to increase the number of companies besides Daikin with which it collaborates in the future.

RD stems from waste cooking oil and inedible oils of biological origin. It is possible to reduce CO2 emissions by 90% compared to light oil refined from crude oil.

The initial cost for environmental friendliness is lower than switching to electric vehicle (EV) trucks, which don't require modification of existing engines, etc., require recharging facilities, etc.

"Ocean Network Express (ONE)," a container shipping company jointly owned by three major Japanese shipping companies, will also start land transportation of containers using RD in June 2022. Like Maersk, it also aims to establish a mechanism to distribute CO2 reductions to other companies.