Biofuels in Shipping: Production, Potential, and Regulatory Challenges

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The Biofuels in Shipping report published by DNV explores the current status of biofuel production, considerations for using biofuels on ships, the regulatory status of biofuels, the potential for the fuel type, and an outlook for biofuel production. However, short-term production constraints currently limit biofuel adoption, while longer-term, shipping might face challenges in securing biofuels as demand from other industries increases. The report suggests that biofuels currently account for around 0.1% of marine energy consumption based on the bunkering of biofuel blends in Singapore and Rotterdam. This percentage could increase to up to 50% of biofuel energy use by the shipping sector by 2050, depending on the use of biofuels in other industries.

DNV estimates that feedstocks such as used cooking oil and MSW are limiting the potential production of advanced biofuels. The company estimated biofuel production from theoretical to technical and sustainable potential, revealing that the global sustainable and economic biofuel potential is between 400 and 600 million tonnes of oil equivalent per year by 2030, and could increase to between 500 and 1,300 million tonnes per year in 2050. However, the report noted that its estimates were lower than others because sustainability requirements in line with the EU’s Renewable Energy Directive II were applied.

The report also highlighted the impact of biofuels on CII ratings, emissions under the EU MRV and EU ETS regimes, and FuelEU Maritime. The regulatory level presents different approvals and certifications for each individual fuel. The findings confirm that a multi-fuel approach will be required to achieve shipping’s goal of moving towards zero greenhouse gas emissions in the future. Bioethanol and bio-LNG are considered drop-in fuels, while biodiesel and other liquid fuels may need vessel modifications, and operational changes, such as avoiding certain fuels in tanks for too long, are also essential as some biofuels degrade faster than their fossil-fuel-derived equivalents.

In conclusion, the Biofuels in Shipping report provides detailed insights into the present and future status of biofuel production, their use on ships, and their potential. The report suggests that biofuels, although unlikely to be the only solution to achieve zero greenhouse gas emissions, will continue to play a significant role in the transition to cleaner shipping fuels. Further development of sustainable biofuels can improve the adoption rate in the marine industry and reduce the impact of shipping on the environment.


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