- Trials confirm biodiesel blends up to B100 are feasible for ship engines.
- NYK ramps up biofuel bunkering without engine issues.
- Fuel stability challenges highlight the need for additives and guidelines.
Biomass-based marine fuels, such as marine biodiesel, are poised to make waves in the maritime industry, but for them to truly take off, we need stronger supply chain security and supportive regulations, as discussed by panellists at APPEC 2025 in Singapore on September 10, reports S&P Global.
Trials Show Biodiesel is Engine-Ready
According to Ningrui Tang, a research fellow at the Maritime Energy & Sustainable Development Centre of Excellence, biodiesel blends ranging from B24 and B30 all the way up to B100 neat biodiesel are perfectly suitable for marine engines. He shared insights from trial results, highlighting their technical feasibility. NYK Shipmanagement has already jumped on the biofuel bandwagon since 2022, steadily increasing its biobunker offtake over the last three years.
“Without witnessing any major challenges or engine damage,” the company’s Managing Director and COO, Anubhav Garg, said.
Stability and Additive Needs
When it comes to long-term biofuel use, engine performance isn’t really an issue. However, challenges like fuel performance and stability still need to be addressed. Biofuels tend to have lower oxidation stability because they’re more hygroscopic and solvent-like compared to traditional fuels. “This could be countered with the use of fuel additives and antioxidants, though firm guidelines for allowed additives and storage protocols should be established,” Tang said.
Feedstock Constraints Emerging
Beyond stability, feedstock availability is a growing concern. “Feedstock constraint will become an issue over time,” Anne Hatlem, Equinor’s SVP Marketing & Supply, said, echoing other panellists and audience members.
With the aviation sector willing to pay a premium for biofuels compared to shipping, there’s a risk that competition for limited feedstocks could lead to inefficiencies. “Do we really believe that one ton of carbon is worth more on a plane than on a ship?” Hatlem posed, advocating for a global, cross-industry book-and-claim system to promote fair decarbonization.
Role in Maritime Decarbonization
Despite challenges, biomass-based marine fuels, including bioalcohols, remain an important option for decarbonization.
“[Marine biofuel is] easy, it’s low risk … you can drop and burn it, and it doesn’t require any infrastructure investment,” Hatlem said. “Biofuels or biodiesel can be a good candidate as a pilot fuel, running along other types of alternative fuels in the future,” Tang added.
Market Pricing for Biobunkers
According to Platts, a part of Commodity Insights, the price for Singapore-delivered B24 low-sulfur biobunkers was assessed at $666.04 per metric ton on September 11, which is a premium of $203 per metric ton over the Platts benchmark for FOB Singapore Marine Fuel 0.5%S cargo assessments. On the same day, Singapore-delivered B24 high-sulfur biobunkers were priced at $619.09 per metric ton, reflecting a premium of $225 per metric ton over the FOB Singapore 380 CST 3.5%S fuel oil cargo assessments.
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Source: S&P Global