Biofuels have become an increasingly popular choice for ship owners seeking to reduce their carbon footprint, with the International Maritime Organization (IMO) setting ambitious targets for reducing greenhouse gas emissions from shipping. The adoption of biofuels is accelerating, driven by regulatory tightening and growing demand for sustainable fuels. According to a new white paper published by NorthStandard, the use of biofuels in commercial shipping is expected to increase significantly over the coming years.
The increasing popularity of biofuels has also led to concerns about quality and regulation. Many ship owners are seeking drop-in solutions that can be easily integrated into existing systems, but this has raised questions about the potential for biofuel blends to compromise performance or safety. In response, suppliers such as World Fuel are emphasizing the importance of robust testing protocols and certification procedures to ensure compliance with regulatory requirements.
Biofuels are already widely used in commercial shipping, particularly in blends that contain a 'bio' component of 5%-10%. However, as regulations tighten, higher bio components will be needed to meet increasingly stringent emissions targets. The IMO has set a target for ships to cut well-to-wake greenhouse gas intensity by 65% by 2040, which will require more advanced and sustainable feedstocks.
Despite the challenges, many industry experts believe that biofuels remain the leading short-term decarbonization pathway for shipping. However, buyers must implement stronger due diligence to ensure compliance with regulatory requirements and protect against potential risks. This includes verifying the sustainability of biofuel sources and ensuring that suppliers provide robust documentation and testing protocols.
The use of lower bio component blends has raised concerns about the quality and composition of these fuels. Buyers must be aware whether the bio component comprises Fatty Acid Methyl Esters, Hydrotreated Vegetable Oil or other substances such as Cashew Nut Shell Liquid. In an ideal world, owners would use HVO given its similarities to traditional marine diesel fuels, but availability and cost are currently major challenges.
Improvements in refining and distillation have remedied some quality issues associated with CNSL feedstocks, such as engine wear or corrosion. However, buyers must remain vigilant on quality and ensure that suppliers provide robust testing protocols and certification procedures. Certification and chain-of-custody documentation is a critical compliance factor that must be integrated into contracts, audits, and onboard reporting systems.
Another critical recommendation from industry experts is to transfer no biofuel until the Union Database transaction ID has been provided, with the ID also being digitally linked to the Bunker Delivery Note. This will help ensure transparency and accountability throughout the supply chain and prevent potential risks or disputes.
As the shipping industry continues to grapple with the challenges of decarbonization, it is clear that biofuels will play a critical role in reducing greenhouse gas emissions. However, regulatory tightening and rapid demand growth have created a need for stronger due diligence among buyers. Suppliers must ensure that they provide robust testing protocols and certification procedures to support compliance with regulatory requirements.
Ultimately, the success of biofuels in shipping will depend on their ability to meet the increasingly stringent demands of regulators and consumers alike. By prioritizing quality, transparency, and sustainability, industry leaders can help drive the adoption of biofuels and reduce greenhouse gas emissions from shipping.
As the shipping industry continues to grapple with the challenges of decarbonization, biofuels are emerging as a key player in reducing greenhouse gas emissions. However, regulatory tightening and rapid demand growth have created a need for stronger due diligence among buyers.
