Honeywell International Inc. (NASDAQ:HON) introduced a new technology that converts agricultural and forestry waste into renewable fuels, offering a potential breakthrough for hard-to-decarbonize industries such as shipping and aviation.
The process converts low-cost biomass, such as wood chips and crop residues, into sustainable marine fuel, gasoline, and aviation fuel.
The innovation provides "drop-in" fuels that can replace traditional heavy fuel oil without engine modifications. These renewable fuels have higher energy density than most biofuel alternatives, allowing vessels to travel farther while cutting emissions and operating costs.
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Ken West, president of Honeywell Energy and Sustainability Solutions, stated that the company's Biocrude Upgrading process can be delivered in a modular form to help customers reduce installation costs and project risks. "The maritime industry has a real need for renewable fuels that are immediately available and cost-effective," West said.
The modular plants enable the conversion of plant and agricultural waste into lower-carbon biocrude at collection sites, thereby reducing transport costs before refining into marine fuel, gasoline, or sustainable aviation fuel (SAF). The approach addresses the industry's reliance on heavy fuel oil, a major source of the maritime sector's roughly 3% share of global greenhouse gas emissions.
The Biocrude Upgrading process complements Honeywell's other renewable fuel technologies, including Ecofining, Ethanol to Jet, Fischer-Tropsch (FT) Unicracking, and UOP eFining, which converts green hydrogen and carbon dioxide into e-fuels.
The initiative also aligns with Honeywell's ongoing portfolio overhaul and new segment strategy and spin-off plans designed to focus on high-growth markets.
By integrating modular renewable fuel systems into its clean energy portfolio, Honeywell aims to scale production and lower costs, helping industries transition toward a low-carbon future.
Price Action: HON shares were trading lower by 0.01% to $215.04 at last check Tuesday.
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