New Co-Processed Marine Fuel Can Reduce Greenhouse Gas Emissions

New Co-Processed Marine Fuel Can Reduce Greenhouse Gas Emissions

The global community is becoming increasingly aware of the impact of greenhouse gas emissions on climate change. Consequently, the demand for solutions to reduce these emissions is growing.

One of these solutions is the introduction of a new co-processed marine fuel. As marina insurance agents, it would be beneficial to learn about this latest advancement in marine fuel technology so you can give the appropriate recommendations to your clients. 

What is Co-Processed Marine Fuel?

Maritime transportation is responsible for fulfilling more than 90% of international trade requirements. As such, it plays a vital role in the global economy. However, it also has a substantial environmental impact, being one of the most significant sources of greenhouse gas emissions.

Developments of Co-Processed Marine Fuel

The International Maritime Organization (IMO) has implemented a new regulation called MARPOL Annex VI to reduce these emissions. This regulation requires ships to use cleaner-burning fuels.

Marine fuel producers have recently developed a new co-processed marine fuel to meet the MARPOL Annex VI standards. Blending traditional bunker fuel with synthetic crudes such as biomass-derived oils can make it.

This blend results in a cleaner fuel and produces fewer emissions than traditional bunker fuel. The fuel blend has reduced greenhouse gas emissions by up to 80 percent compared to conventional marine fuels.

Impact on the Maritime Industry

There are many reasons why all stakeholders should be aware of this new fuel. First, it could significantly reduce the risks associated with maritime transportation. Consequently, it could considerably impact the value of maritime property insurance policies. The new fuel technology could affect liability insurance coverage for maritime accidents.

The development of the new fuel could also affect insurance companies’ ability to tap into the growing market for environmental compliance insurance. These policies provide the necessary coverage if a company fails to meet its emissions targets. As the use of co-processed marine fuel increases, insurance companies that adapt their products and services accordingly could reap considerable rewards.

How can Insurance Agents Prepare for this Change?

Many insurance companies are now striving to understand how this new fuel will impact their business. The good news is that there are many steps that insurance agents can take to prepare for this change.

First, insurance specialists should educate themselves about the new fuel and how the production cycle goes. It will help them better understand the associated risks and how these affect their clients. 

For example, co-processed marine fuel is more likely to degrade and produce sludge than traditional fuels. It can increase the likelihood of damaging engines and clogging filters. The fuel is also much more corrosive than conventional crude oil, making it more likely to eat away at pipeline and storage tank coatings.

Insurance agents should also reevaluate insurance policies to cover their clients’ risk exposures adequately. It is advisable to coordinate with managers and supervisors to develop new approaches that specifically address issues related to the use of the new fuel.


The maritime industry is facing new challenges as the International Maritime Organization (IMO) has set a global cap on greenhouse gas emissions for ships. There is still some uncertainty about how anyone would implement this mandate and what types of fuels will be available.

One thing is clear: agents must start preparing for this change. We’ve outlined some of this shift’s critical impacts on the maritime industry and offered suggestions on how agents can prepare for it. Are you and your clients ready to switch to the new co-processed fuel?

About Merrimac Marine Insurance

At Merrimac Marine, we are dedicated to providing insurance for the marine industry to protect your clients’ business and assets. For more information about our products and programs, contact our specialists today at (800) 681-1998.