Energy solutions firm Sumitomo SHI FW (SFW) and VTT Technical Research Centre of Finland have signed a licencing agreement to use syngas technology to produce alternative fuels for sectors including shipping.

SFW will use VTT’s technology at its plants to convert biowaste, including agricultural residues and municipal waste, into fuels that can be used in ships, VTT said in a statement on its website on Tuesday.

Syngas is a mixture of hydrogen and carbon monoxide and is used as a feedstock to produce alternative fuels. 

The companies said the process can produce fuels such as green methanol, which can be used in dual-fuel methanol ships and is a cleaner alternative to conventional marine fuels.

“Our joint work on renewable transportation fuels began more than 15 years ago with a liquid fuel demonstration project,” Tomas Harju-Jeanty, CEO of SFW, said.

“The technology is now ready for commercial use for SAF, carbon-neutral maritime fuels and other sustainable fuels and chemicals,” Harju-Jeanty added.