Biofuel can deliver significant GHG emissions reductions but future uptake could be hampered by supply, says DNV

According to DNV’s latest white paper “Biofuels in Shipping”, key biofuels like FAME and HVO have great potential for reducing greenhouse gas (GHG) emissions and supporting compliance with maritime regulations, but their benefits to the industry could be constrained by limited supply in the future. With biofuel use expected to increase, the paper also highlights the importance of its safe introduction, outlining critical operational and technical considerations.

In 2023, the maritime sector consumed just 0.7 million tonnes of oil equivalent (Mtoe) of liquid biofuels, representing a mere 0.6% of global liquid biofuel supply and 0.3% of shipping’s total energy use, highlighting the limited uptake of biofuels in shipping today compared to other sectors. Despite this, biofuel holds significant potential for reducing GHG emissions and achieving compliance with regulatory frameworks, such as CII, EU ETS, and FuelEU Maritime. To realise these benefits, the biofuels used must meet stringent sustainability and GHG savings requirements, verified through a Proof of Sustainability (PoS) or similar document.

Drawing on in-depth interviews and written surveys of eight biofuel suppliers and 12 shipping companies, the paper identified more than 60 locations which have already been proven to have carried out biofuel bunkering operations since 2015. The report estimates that the ports of Singapore and Rotterdam accounted for about half of all biofuels supply to shipping in 2023.

Knut Ørbeck-Nilssen, CEO Maritime at DNV said: “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, the most established biofuels for maritime use, with conventional oil-based fuels. The DNV white paper contains an overview of the main technical and operational considerations for use of biofuel as a ‘drop-in’ fuel. This includes key recommendation to shipowners such as verifying fuel quality, compatibility with onboard systems, and monitoring performance.

Øyvind Sekkesæter, Consultant in Maritime Environmental Technology at DNV and Lead Author of “Biofuels in Shipping” said: “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.”