Biodiesel Tops the Sustainable Maritime Fuel Confidence Index for 2024

• Biodiesel claimed the top spot in the 2024 Sustainable Maritime Fuel (SMF) Fest Confidence Index, surpassing the previous leader, LNG-biomethane.
• LNG e-methane retained its third position, while green methanol and green hydrogen saw significant drops in confidence.
• The SMF Confidence Index measures industry stakeholders’ confidence across technology, infrastructure, commercial viability, and environmental credentials for 12 marine fuels.
• Decision-making on future fuel strategies remains cautious despite progress in alternative fuel technologies.

Biodiesel has emerged as the leader in the second edition of the Sustainable Maritime Fuel (SMF) Fest Confidence Index, displacing 2023’s winner, LNG-biomethane, to the second spot, while LNG e-methane maintained its position at number three. This annual index provides a snapshot of the confidence shipping and marine fuel industry stakeholders have in the maritime sector’s energy transition, reports Offshore Energy.

Insights from the SMF Fest Confidence Index

The SMF Confidence Index, launched during the inaugural Sustainable Marine Fuel Fest in Valencia in November 2023, evaluates confidence in decarbonization efforts. It examines confidence levels across four key pillars—technology, infrastructure, commercial viability, and environmental credentials—spanning five deep-sea vessel segments: containerships, dry cargo, gas carriers, passenger ships, and tankers.

The 2024 edition highlights a shift in sentiment among industry stakeholders, reflecting greater awareness of the energy transition process and the environmental credentials of alternative marine fuels. Despite progress in some areas, overall confidence in many alternative fuels declined year-over-year.

Key Trends in Fuel Confidence

• Green Methanol: Confidence fell from 53.5% in 2023 to 40.6%, despite prior optimism driven by increased orders for methanol-fueled vessels.
• Green Hydrogen: Confidence dropped sharply from 42.7% to 29.2%.
• Blue and Grey Hydrogen: Blue hydrogen plummeted from 34.5% to 18.8%, while grey hydrogen fell from 33.2% to 13.9%.

Conversely, green ammonia advanced in the rankings, overtaking green hydrogen among green fuel variants, while grey methanol retained its 2023 position.

Slow Progress in Future Fuel Strategies

The key takeaway from the 2024 index is the cautious pace of decision-making regarding future fuel strategies. Industry players like the Mærsk Mc-Kinney Møller Center for Zero Carbon Shipping (MMMCZCS) remain optimistic, citing substantial growth in projects involving green ammonia, bio-methane, e-methanol, and renewable diesel.

The MMMCZCS emphasizes the need for clear certification standards, robust emission controls, and global regulatory consensus to meet the International Maritime Organization’s (IMO) decarbonization targets by 2050.

Path to Decarbonization

Despite overarching challenges, the technological readiness of low-emission fuels is progressing. With significant advancements in production and deployment, biodiesel and other alternative fuels are on the right trajectory to support the maritime sector’s green transformation. However, the success of these fuels ultimately hinges on collaborative efforts to establish comprehensive regulatory frameworks and certification standards worldwide.