The most "technologically ready" alternative zero emission fuel option currently available is biofuels. Now accessible and in use as blend-in fuels like FAME (fatty acid methyl ester) or drop-in fuels like HVO (hydrotreated vegetable oil), or as alternative fuels in specialized engines like biomethanol.
It is possible to draw certain assumptions regarding the supply availability in comparison to non-bio zero carbon fuel options, even if a more comprehensive understanding of the sustainability and scalability of biofuels is still developing.
Availability of biofuels for shipping depends on scalability, sustainability, and demand from other industries such as the aviation sector. Sustainability standards and certifications are vital areas to focus on when exploring the use of biofuel in shipping’s decarbonization transition.
For the shipping and aviation sectors, biofuel demand growth is likely to be much stronger in the coming years. Since there are obvious technical synergies for blending biofuels into conventional marine and aviation fuels to improve their environmental profiles without significantly altering ship and aircraft engines or their fuel systems. Depending on the blend, according to a number of trials that have been conducted and are still being conducted, the ideal biofuel blend has the potential to reduce carbon dioxide emissions by between 5-25%.
The chemical and specialized tanker fleet, as well as Handies and MRs, who are already major shippers of liquid biofuel and feedstocks like ethanol, HVO, and FAME, could be the biggest winners in the shipping industry. As a result, it is likely that the amount of new generation biofuel cargoes will increase as more refinery complexes convert to biofuel plants, which should favorably impact demand and earnings for smaller tankers.
One option for taking action this decade to achieve the short-term CO2 reduction targets on the road of shipping decarbonization is to use biofuels. While there is magic solution for scalable zero emission shipping fuel, currently accessible biofuels can offer the flexibility of an interim drop-in solution or as a zero-emission pilot fuel for other zero emission fuels under development.
To unpack the different fuels and technologies options that could support the transition to zero emission fuels Leadvent Group is hosting the Advanced Biofuels Forum in Amsterdam Netherlands on 30th November - 2nd December, 2022.
For more information and group participation, contact us: [email protected]
