On November 28,2025, NYK invested in XFuel Limited (XFuel), a company that has developed innovative technology to refine liquid hydrocarbons derived from waste into low-carbon fuel. By advancing collaboration with XFuel — including the recycling of fuel sludge (fuel tank sediment) generated from our operating vessels — we aim to drive the development of advanced decarbonization technologies that utilize existing fuels.

XFuel’s proprietary chemical liquid refining technology* is groundbreaking. It is capable of efficiently converting waste-derived liquid hydrocarbons into high-purity, low-carbon fuel suitable for marine applications. This innovative process not only repurposes existing fuel waste but also offers an economically and logistically viable decarbonization solution that requires no modifications to engines or infrastructure, thereby promising to accelerate environmental initiatives within the shipping industry.

Going forward, under our partnership with XFuel, we will actively pursue opportunities to supply sludge — a waste product from our vessels — as a raw material, purchase low-carbon fuel as a product, and collaborate across the entire supply chain to further our sustainability objectives.

XFuel Limited

XFuel is a low-carbon drop-in fuel technology company developing scalable, drop-in fuel solutions for hard-to-abate transport sectors. The company’s proprietary Chemical Liquid Refining (CLR) technology converts waste and residue hydrocarbon liquids into ultra-clean transport fuels compatible with existing engines and infrastructure, enabling near-term emissions reductions while supporting the circular use of waste materials. XFuel is headquartered in Europe.

Chemical Liquid Refining (CLR) is XFuel’s proprietary one step thermochemical conversion process that transforms waste derived hydrocarbon liquids into low sulfur, high quality drop in fuels.

CLR achieves the following within a single integrated operation:

• Refining to remove heavy metal and heteroatom impurities, such as sulfur.
• Reduction of density and viscosity, adjusting the composition to meet fuel specifications.

Through this process, CLR can convert contaminated and mixed waste hydrocarbon liquids into ultra clean marine grade fuels such as Marine Gas Oil (MGO). Process conditions can be tuned to produce other clean fuel and oil outputs.
Source: Nippon Yusen Kaisha