Americas News
US Lawmakers Revive Push for Biofuel Incentives in Marine Fuel Market
US Senators Pete Ricketts and Amy Klobuchar have reintroduced the Renewable Fuel for Ocean-Going Vessels Act in the Senate, which would allow producers to keep renewable identification number (RIN) credits when selling biofuel to ocean-going ships in the US under the Renewable Fuel Standard (RFS) program.
"Expanding the use of biofuels like renewable diesel strengthens American energy independence, supports Nebraska agriculture, and reduces emissions," Senator Ricketts said in a statement on Thursday.
Currently, biofuel bunkers sold to ocean-going vessels in the US do not qualify for RIN credits.
As a result, refiners and blenders have little incentive to supply biofuels for ocean-going vessels, making biofuel bunkering of ocean-going vessels less attractive compared to the domestic market.
If the bill is enacted, fuel producers can claim RIN credits for biofuel sold to ocean-going vessels.
This would create an additional revenue stream for them, as they could sell these credits in the RIN market, making biofuel bunkering more financially attractive. It could also potentially make biofuel bunkering cheaper for ocean-going vessels in the US.
However, it is too early to determine whether the bill will pass both the Senate and the House of Representatives or how quickly it might advance through the legislative process.
The bill was previously introduced in February 2024 by Senators Ricketts and Sherrod Brown during President Joe Biden's term. It was then referred to the Senate Committee on Environment and Public Works, where it did not advance.
"Ocean-going cargo ships, tankers, and passenger vessels have a need for low-carbon, low-sulfur biodiesel and renewable diesel which provides an additional market for biofuels," Congresswoman Mariannette Miller-Meeks, the bill's lead in the US House of Representatives, said.
US biofuel associations have also backed the bill.
"This bill is a win for everyone who values stronger markets, cleaner energy, and a stronger, safer America," Dawn Caldwell, executive director of Renewable Fuels Nebraska, said.
"Biofuels are an important pathway for future fuels for the maritime industry, Jennifer Garson, executive director of the Sustainable Maritime Coalition, said.
"And the United States with its vast biofuel feedstocks and resources creates an enormous economic opportunity for the nation's farmers to produce fuels to meet the growing global demand for alternative fuels."
