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A new onshore fuel blending station has been launched in Walvis Bay, Namibia, which will enable the country's fishing industry to use a mixture of distillate and heavy fuel products and to also reduce its impact on the environment.

Inaugurated by the Deputy Minister of Mines and Energy, Bernhard Esau, the N$35 million (US$4.6 million) Hangana Fuel Blending Station is the first of its kind in Namibia. It includes a controlling station, pump station, fuel tank farm, fuel supply pipelines and a blending station as well as an on-board fuel blending infrastructure.

The fuel blending station will enable Hangana Seafood's fleet of diesel powered fishing vessels to use a mixture of Automotive Diesel Oil (ADO) and Heavy Fuel Oil (HFO). The fuel blends will not only potentially reduce fuel costs but will also be more environmentally friendly than heavy fuel oil.

Hangana Seafood is a subsidiary of the Ohlthaver & List Group, said to be a leader in innovation and sustainability both in terms of natural resources and the natural environment. It therefore comes as no surprise to some that the company has taken on this groundbreaking marine fuels project in Namibia.

In addition, Hangana Seafood suffered from spiralling operational costs between 2004 and 2006 with fuel prices rising by over 60 percent in 2005 alone. Last year the company's bunker costs rose to unprecedented levels as the price of crude oil reached a peak of $147.27 per barrel in July.

With the slightest change in the price of oil amounting to millions more being spent on bunker fuel, the company launched its fuel project in 2006 in a bid to find a soluton that would enable it to cut costs and increase its competitiveness.

Whilst looking at alternatives, the company's idea of importing fuels with the right characteristics in terms of calorific energy value, viscosity, sulphur content and storability from South Africa proved to be unsuccessful with respect to import approvals, demand quantity and storage capacity.

Furthermore, the plan to bunker offshore was also found not to be feasible because of the time lost travelling to the offshore fuelling location, the limited tank capacity of Hangana Seafood’s vessels and perceived risk of inconsistent fuel over time.

The answer lay in in-line fuel blending and the project was set in motion for the design and commissioning of a plant at Hangana's factory premises. Here, diesesl and HFO were blended to form Intermediate Fuel Oil (IFO) with IFO being not only a cleaner, more environmentally-friendly fuel type than HFO, but tests revealed no difference in operational perimeters (ie consumption and power development).

Speaking at the inauguration, Deputy Minister Esau said the new fuel blending station will allow greater flexibility to optimise fuel consumption and will also save time and costs as no steaming is required, thus reducing the risk of offshore bunker spills.