- Biofuels and LNG are set to remain the most economical alternative marine fuels well into the 2030s.
- Diversifying biofuel feedstocks beyond Ucome is critical to meet growing demand and regulatory targets.
- HVO and FAME serve complementary roles, with HVO ideal for low-particulate and cold-climate operations.
- Ethanol and LNG offer scalable, practical solutions, supporting the shipping industry’s long-term decarbonization goals.
Biofuels and liquefied natural gas (LNG) are expected to remain the most cost-effective alternative marine fuels well into the 2030s, according to insights shared at the Marine Fuels 360 conference in Singapore. Industry experts highlighted the importance of diversifying biofuel feedstocks beyond commonly used biodiesel or used cooking oil methyl ester (Ucome) to meet growing demand, particularly from the sustainable aviation fuel sector. As highlighted by Argus Media, these fuels are seen as practical interim solutions on the long path to decarbonizing shipping.
Expanding Biofuel Options to Meet Future Demand
Speakers at the conference emphasised that while Ucome will continue to play a role, relying solely on it will not satisfy future marine fuel demand. Alternative feedstocks, such as cashew nut shell liquid (CNSL), are being explored, though they require additional refining and testing to ensure compatibility with marine engines. Hydrotreated vegetable oil (HVO), though more expensive, offers a direct replacement for distillate fuels and is particularly suitable for vessels operating in colder regions or sensitive conditions, providing superior low-particulate matter performance. Fatty acid methyl esters (FAME) remain the workhorse, while HVO addresses specific operational needs.
LNG, Ethanol, and the Path Forward
LNG continues to scale as a mature and commercially viable alternative, supported by expanding infrastructure and growing market supply. Ethanol is emerging as a new option, benefiting from compatibility with dual-fuel methanol engines and existing global production. Experts suggest co-combustion of methanol and ethanol could become a practical step for future vessels, especially with nearly 1,000 ships scheduled for retrofitting. While regulatory uncertainties and cost distribution across the supply chain remain challenges, biofuels and LNG are viewed as essential stepping stones in the maritime industry’s long-term decarbonization strategy.
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Source: Argus Media group
