Danish shipping and logistics company DFDS has decided to invest in startup company Mash Energy ApS to develop a commercially viable biofuel.
Together with Mash Energy, the goal is to develop an alternative to fossil fuels, including testing on a DFDS ferry.
“We are extremely pleased to add DFDS, a large ferry operator, to the ownership circle which will give opportunities to test the biofuel in engines and verify that our product is indeed of the quality and price necessary for it to succeed in the shipping industry,” Jakob Andersen, CEO of Mash Energy, commented.
Mash Energy ApS produces biofuel from agricultural waste, currently from the by-products of nut processing in Tanzania and India.
As explained, the biofuel is CO2 neutral and can be used in ships. In addition, the residual product is an effective fertilizer and will also contribute to reducing the CO2 balance.
Specifically, the investment comprises DKK 10 million (USD 1.5 million) made in three stages for a 24% ownership share of the startup after the final stage.
According to DFDS, the investment supports the company’s corporate social responsibility (CSR) strategy of which a key ambition is to contribute to improving air quality.
“The investment is a result of our ambition to take responsibility for the development of commercially viable biofuel that is a real alternative to fossil fuels and thereby reduce the carbon footprint of our ferries,” Sofie Hebeltoft, Head of CSR at DFDS, said.
“The aim is also to produce sufficient volume to make the biofuel commercially viable and identify other waste products that can be used to produce the biofuel,” Hebeltoft concluded.