Biofuel can deliver significant GHG emissions reductions but future uptake could be hampered by supply: DNV
In a recent white paper titled “Biofuels in Shipping,” DNV has highlighted the significant potential of biofuels in reducing greenhouse gas (GHG) emissions within the maritime sector. The report emphasizes that key biofuels, such as FAME and HVO, can play a crucial role in supporting compliance with maritime regulations. However, the future uptake of biofuels may face challenges due to limited supply.
Current Biofuel Usage in Maritime Sector
In 2023, the maritime sector consumed a mere 0.7 million tonnes of oil equivalent (Mtoe) of liquid biofuels, representing only 0.6% of the global liquid biofuel supply and 0.3% of the total energy use in shipping. Despite this limited uptake, biofuels hold significant promise for reducing GHG emissions and achieving compliance with regulatory frameworks such as CII, EU ETS, and FuelEU Maritime.
Sustainability and GHG Savings Requirements
To realize the benefits of biofuels, it is essential that they meet stringent sustainability and GHG savings requirements. These requirements must be verified through a Proof of Sustainability (PoS) or a similar document. The white paper draws on in-depth interviews and written surveys of eight biofuel suppliers and 12 shipping companies, identifying over 60 locations that have carried out biofuel bunkering operations since 2015. Notably, the ports of Singapore and Rotterdam accounted for about half of all biofuels supplied to shipping in 2023.
Challenges and Future Outlook
Knut Ørbeck-Nilssen, CEO Maritime at DNV, stated, “Biofuels present a promising decarbonization option for shipowners, and it’s encouraging to see steady growth in the number of bunkering ports offering biofuels in recent years. However, the long-term future of the maritime biofuel market hinges on the availability of sustainable biomass at an affordable level, as well as competition with other sectors. Shipowners should, therefore, aim to explore energy efficiency measures and alternative fuels as part of their wider decarbonization strategies, while utilizing biofuels where they are available and affordable.”
Technical and Operational Considerations
The majority of biofuel consumption in shipping occurs through fuel blends, combining biofuels like FAME and HVO with conventional oil-based fuels. The DNV white paper provides an overview of the main technical and operational considerations for using biofuel as a ‘drop-in’ fuel. Key recommendations to shipowners include verifying fuel quality, ensuring compatibility with onboard systems, and monitoring performance.
Øyvind Sekkesæter, Consultant in Maritime Environmental Technology at DNV and Lead Author of “Biofuels in Shipping,” emphasized the importance of assessing the technical compatibility of marine biofuels on a case-by-case basis. “The technical compatibility of key marine biofuels like FAME and HVO varies from ship to ship, making it essential to assess each case individually. Doing so will ensure that the fuel specification and quality are compatible with their intended application, minimizing the risk of damage to equipment and loss of power onboard the vessel,” Sekkesæter explained.
While biofuels offer a promising solution for reducing GHG emissions in the maritime industry, their future uptake will depend on the availability of sustainable biomass and competition with other sectors. Shipowners are encouraged to explore a combination of energy efficiency measures, alternative fuels, and biofuels to achieve their decarbonization goals.
