Biofuel Bunker Market's Future Tied to Affordable Sustainable Biomass: DNV

GoodFuels delivering biofuel to a vessel in Singapore. Image Credit: GoodFuels

The future trajectory of biofuel bunkers will be shaped by the ability to source affordable biomass and the competition from other sectors, such as road fuels, according to a new report from classification society DNV.

Currently, most biofuel is used in road transport, especially in countries like the US, Brazil, and Norway, where blending requirements exist.

While biofuel consumption is increasing in aviation and shipping, it remains relatively lower compared to its usage in road transport.

In 2023, the uptake of biofuels reached approximately 0.6 million tonnes of oil equivalent (Mtoe) in aviation and 0.7 Mtoe in shipping, as per IEA data cited by DNV.

Several shipowners have voluntarily engaged in biofuel bunkering trials, testing bio-blends, which has become a key factor in biofuel uptake within the shipping industry.

FAME (Fatty Acid Methyl Ester) and HVO (Hydrotreated Vegetable Oil) have emerged as prominent feedstocks for marine biofuel blends, with B20 and B30 being common blend ratios sold in the market.

Looking ahead, challenges on the supply side, such as limited availability of sustainable feedstock, competition with other sectors, and logistical hurdles, are expected to impede the growth of the marine biofuel market.

"Shipowners should, therefore, aim to explore energy efficiency measures and alternative fuels as part of their wider decarbonization strategies, while utilizing biofuels where they are available and affordable," Knut Ørbeck-Nilssen, CEO of Maritime at DNV, said.