On 20 August 2026 the bulk carrier MV Scion Mathilda received what industry participants describe as Singapore’s inaugural supply of very low sulphur fuel oil (VLSFO) that has been co‑processed with cashew‑nut shell liquid (CNSL). The operation, carried out at the Port of Singapore, involved a total of 246.5 metric tonnes (mt) of fuel – 212 mt of conventional VLSFO and 34.5 mt of CNSL‑co‑processed VLSFO – and was overseen by agricultural trader Olam Agri in partnership with energy merchant Vitol Bunkers.
Details of the bunkering operation
Ship & Bunker reported that the fuel was supplied by Vitol Bunkers and procured through Olam Agri’s ocean‑freight business for the 82,000 dwt kamsarmax vessel. The same outlet confirmed the bunker took place at Singapore’s main bunkering hub, with the ship subsequently departing on a laden leg from Caofeidian in China to Rotterdam, followed by a ballast run to Barcarena in Brazil.
Splash247 echoed these figures, stating that Vitol delivered “246.5 tonnes of fuel to the 82,000 dwt Scion Mathilda, comprising 212 tonnes of conventional VLSFO and 34.5 tonnes of co‑processed CNSL VLSFO”. The article added that Olam Agri’s ocean‑freight arm handled the procurement, underscoring the commercial nature of the transaction.
According to a press release on ship.energy, the bulk carrier was owned by Atlantic Lloyd, although ownership does not affect the technical outcome of the bunkering. The fuel blend met the RMG 380 VLSFO specification and required no additional onboard handling or treatment – a point highlighted across all reports.
Performance and emissions impact
The co‑processed portion of the cargo was burned without incident, as confirmed by both Olam Agri and Vitol. Ship & Bunker noted that “the vessel consumed 34.1 mt of the co‑processed fuel without any operational issues”. Splash247 added that this consumption occurred over the China‑Europe leg and the subsequent ballast voyage.
Both sources agree on the emissions benefit: the CNSL‑co‑processed VLSFO exhibited a greenhouse‑gas (GHG) intensity of 2.02 gCO₂eq / MJ, delivering savings of at least 120 tonnes CO₂ equivalent when compared with conventional VLSFO on an equal energy basis. Maritime Professional reiterated these numbers and stressed that the reduction was achieved “with no additional onboard handling or fuel treatment requirements”.
Overall fuel consumption for the voyage amounted to 1,354 mt of standard VLSFO, 101 mt of marine gas oil (MGO) and the 34.1 mt of CNSL‑co‑processed VLSFO, according to Maritime Professional’s coverage. The vessel completed the entire itinerary without any recorded operational remarks, suggesting that the fuel performed as a true “drop‑in” replacement.
Technical basis of CNSL co‑processing
Splash247 explained that CNSL is a by‑product of cashew processing and has previously been scrutinised when blended directly into marine fuels. Testing firm CTI‑Maritec and insurer Skuld have reported problems such as sludging, clogged filters and injector fouling in fuels containing high concentrations of phenolic compounds derived from CNSL.
Vitol’s approach, as described by Ship & Bunker, avoids those pitfalls by integrating the cashew oil within the refinery stream – a “co‑processing and mass‑balance” methodology that allows the renewable feedstock to be mixed with fossil streams under controlled conditions. This results in a fuel that complies with RMG 380 VLSFO grade while retaining the same chemical composition and quality as conventional marine fuel, eliminating the need for special charter‑party clauses or additional treatment equipment.
The co‑processing technology was first commercialised by Vitol in 2025 at its 100,000 bbl‑per‑day Fujairah refinery. The company argues that the mass‑balance solution “opens up a genuinely new avenue for GHG reduction in marine fuels”, according to statements from Vitol’s trading manager quoted in Ship & Bunker.
Implications for the bunker market
MarineLink highlighted that the successful trial demonstrates a scalable pathway for waste‑derived feedstocks to enter the maritime fuel mix. With International Maritime Organisation (IMO) targets tightening – a 40 % reduction in CO₂ emissions per transport work by 2030 is now enshrined in policy – the ability to deliver measurable GHG savings without vessel modifications could accelerate adoption of similar products.
Maritime Professional added that competition for sustainable bio‑feedstocks from road transport and aviation is expected to intensify, making waste streams such as CNSL an attractive alternative. The Singapore bunkering episode therefore serves both as a proof‑of‑concept and a market signal that co‑processed fuels can meet regulatory requirements while preserving operational simplicity.
What this means for operators
For ship owners and charterers, the key takeaway is that CNSL‑co‑processed VLSFO can be treated as a conventional bunker commodity. No extra filtration, storage or fuel‑system modifications are required, and charter‑party language remains unchanged. Operators stand to gain measurable CO₂e reductions – at least 120 t for the Scion Mathilda’s voyage – which can be reported towards IMO compliance targets or ESG disclosures. Moreover, the product’s availability through established bunkering channels such as Vitol suggests that similar deliveries could become a routine option on major trading routes, providing a low‑risk avenue to enhance environmental performance without compromising operational reliability.