Trader and shipowner Vitol plans to produce low-sulphur ship fuel from coal waste.
It is teaming up with miner Peabody Energy and start-up Arq on the project, the companies said.
They believe the product could be an alternative for vessels as the 2020 IMO sulphur cap looms.
Arq CEO Julian McIntyre told Reuters its fuel would meet new standards and could cut costs for owners.
