The shipping industry’s goal of achieving net-zero carbon emissions has spurred interest in biofuels, which can be readily utilized with current ship engines. However, Rystad Energy’s analysis indicates that the production capacity for biofuels, including biodiesel and bio-liquefied natural gas (bio-LNG), is lagging behind demand. Unrestricted biodiesel demand could exceed 140 million tonnes by 2028, yet total production capacity is projected to peak at only 120 million tonnes. When factoring in sustainability criteria, this figure drops significantly to around 40 million tonnes.
While biofuels offer a cost-effective alternative to traditional marine fuels, the supply remains limited. Over 84% of global biomethane is already committed to electricity generation and road transport, leaving a mere 6% available for maritime use. This supply crunch is a pressing concern for the shipping sector, which must innovate and invest wisely to comply with tightening emissions regulations.
As the industry seeks cleaner fuel solutions, the upcoming Rystad Talks Energy webinar will address how maritime leaders can navigate these challenges. The conversation will focus on the urgent need for scalable, low-emission fuels to meet International Maritime Organization standards. Without proactive measures, the transition to compliant fuels could falter, jeopardizing the industry’s decarbonization efforts.
