APPEC: Panelists flag feedstock constraints as big obstacle in marine biofuel adoption

Biomass-based marine fuels, such as marine biodiesel, are ready for technical use in the maritime sector, but wider adoption would require development in supply chain security and supportive regulations, panelists said at APPEC 2025 in Singapore Sept. 10.

Biodiesel fuel blends, from B24 and B30, up to B100 neat biodiesel, are feasible for marine engine use from a technical perspective, Ningrui Tang, research fellow with the Maritime Energy & Sustainable Development Centre of Excellence, summarized from research trial findings.

NYK Shipmanagement has begun biofuel bunkering since 2022 and ramped up its biobunker offtake progressively for the past three years, without witnessing any major challenges or engine damage, the company's Managing Director and COO, Anubhav Garg, said.

While the long-term usage of biofuels does not compromise engine performance, fuel performance and stability were more pertinent issues for marine biofuel users due to their lower oxidation stability – the hygroscopic and solvent nature of biofuels compared to conventional fuels.

This could be countered with the use of fuel additives and antioxidants, though firm guidelines for allowed additives and storage protocols should be established, Tang said.

Apart from fuel stability concerns, "feedstock constraint will become an issue over time," Anne Hatlem, Equinor's SVP Marketing & Supply, said, echoing similar concerns from other panelists and the audience at the event hosted by S&P Global Energy.

With the aviation industry, for instance, being able to pay significantly more than the maritime sector for biofuels to decarbonize, regulations could be allocating limited feedstocks to the various industries in a suboptimal manner, Hatlem said.

"Do we think one ton of carbon is more worth on a plane than a ship?" Hatlem raised, highlighting the possibility of a global, cross-industry book-and-claim system to incentivize decarbonization across industries.

Nevertheless, biomass-based marine fuels, including bioalcohols, remain a relevant solution for maritime decarbonization, panelists said.

"[Marine biofuel is] easy, it's low risk ... you can drop and burn it, and it doesn't require any infrastructure investment," Hatlem said.

"Biofuels or biodiesel can be a good candidate as a pilot fuel, running along other types of alternative fuels in the future," Tang said.

Platts, part of Energy, assessed Singapore-delivered B24 low-sulfur biobunkers at an outright price of $666.04/mt, equivalent to a premium of $203/mt over the Platts benchmark FOB Singapore Marine Fuel 0.5%S cargo assessments on Sept. 11.

Platts assessed Singapore-delivered B24 high-sulfur biobunkers at an outright price of $619.09/mt, equivalent to a premium of $225/mt over the FOB Singapore 380 CST 3.5%S fuel oil cargo assessments on Sept. 11.