South Korean company, SSVT (Smart Ship Venture Technology), seeks to expand to Singapore with its new service offering, Oilpass.
Oilpass is a blockchain-based ship oil certificate of origin issuance system developed by SSVT. Oilpass makes the process surrounding the marine oil market, from sales to distribution, transparent every step of the way.
The lack of transparency in the distribution process compromises the industry with issues such as tax evasion and illegal transactions. This lack of clarity extends to shipping companies that get their oil from refineries. This can result in low-quality marine oil that jeopardises the vessel’s seaworthiness and opens shipping companies up for liabilities and penalties.
Powered by blockchain technology, Oilpass gives users a complete overview of the origin and records of maritime oil products. The refinery determines the origin of the product and oil quality information. The mode of transportation for the oil product is recorded, along with transaction details and how it makes its way to different vessels. This information is available for authorities and customs to verify, providing accountability for refineries and credibility for shipping companies and ports for their operations.
Singapore is targeting “net zero emissions by 2050” and has been vigilant in following the guidelines set by the International Maritime Organization (IMO). Achieving a compliance rate of 96% in Q1 of 2020 following the IMO 2020 guideline, the country is taking its ESG commitments seriously. During his budget speech on 18 February 2022, Singapore’s Finance Minister, Lawrence Wong, planned to increase Singapore’s carbon tax fivefold to $25 a ton in 2024. This rate will progressively increase to between $50 to $80 per ton of emissions by 2030.
“Singapore is one of the most important ports for maritime trade globally and a leader in ESG efforts and industry accountability. Introducing Oilpass as part of their workflow can be a big step to enhance ongoing efforts towards greater productivity while improving standards for environmental integrity for the maritime industry” said the CEO of SSVT, Park Jonghyun.
Oilpass is undergoing the final stages of development and review and will be ready for commercialisation in 2023.