Biofuels use in shipping has limitations: DNV
Biofuels have the potential to contribute significantly to reducing carbon emissions in shipping because of their flexibility as a "drop-in fuel", but they are "unlikely to be the only solution to shipping's goal of transitioning to zero [greenhouse gas] GHG emissions in the future", according to marine certification society DNV.
In a white paper on the outlook for biofuels' role in shipping, DNV pointed to the fact that biofuels can be blended with conventional fossil fuels such as very low-sulphur fuel oil (VLSFO), and said that because biomass is able to absorb CO2 during growth, CO2 emitted from biofuels during combustion could be viewed as carbon-neutral.
DNV estimates full decarbonisation of shipping would require 250mn t/yr of oil equivalent (toe/yr) of biofuels by 2050 out of a projected 500mn-1.3bn toe/yr of production capacity. It estimates current output capacity at just 11mn toe/yr.
The paper flags some limitations that may hinder the widespread adoption of biofuels in shipping — for example the relatively low oxidative stability of fatty acid methyl esters (Fame) may lead to degradation in long-term storage, compared with hydrotreated vegetable oil (HVO). Furthermore, the marine regulatory framework for biofuels is still under development, it said, noting that the IMO is in the process of launching lifecycle assessment guidelines for bunker fuels including biofuels.
Cost concerns regarding the use of biofuels in bunkering remain prevalent among market participants. In the Amsterdam-Rotterdam-Antwerp (ARA) region, the B30 Fame dob price averaged a premium to VLSFO of $116/t in the first quarter this year, down by $53/t from the previous quarter and $92/t lower on the year, according to Argus data. B100's premium to 0.1pc sulphur marine gasoil (MGO) fell to $46/t in January-March, down by $64/t both on the quarter and on the year.
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ACT to partner with LR, Wartsila, and UECC on CNSL
ACT to partner with LR, Wartsila, and UECC on CNSL
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Brazil, France launch €1bn program to protect Amazon
Brazil, France launch €1bn program to protect Amazon
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Baltimore bridge collapse to raise retail fuel prices
Baltimore bridge collapse to raise retail fuel prices
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