Decarbonization Insights on Biofuels

Jan 14, 2025

Fuel for Thought: Biofuel

Preface

  • Decarbonization imperative in maritime industry due to environmental, social, policy, and regulatory pressures.
  • Historical transitions were driven by technology and economics; current transition needs rapid adaptation.
  • Lloyd's Register (LR) provides insights through the Fuel for Thought series, focusing on decarbonization options for maritime industry.
  • This edition focuses on biofuels as a drop-in replacement for fossil fuels with reduced GHG emissions.

Chapter 1: Introduction

Biofuel Fact File

  • Biofuels are derived from biomass like plant material, algae, and animal waste.
  • Types include solid, liquid, and gaseous forms.
  • Expected to drive decarbonization in transport until new technologies are established.
  • Established biofuels for shipping: FAME (biodiesel) and HVO (renewable diesel).
  • Biofuels allow emissions reduction without significant engine modifications.

Readiness of Biofuel as a Marine Fuel

  • LR's assessment includes technological, investment, and community readiness levels.
  • Biofuels seen as among the most ready alternative fuels.
  • Challenges include scalability and feedstock availability.

Chapter 2: Safety

General Safety and Toxicity Issues

  • FAME and HVO have specific safety considerations.
  • Proper handling and safety gear are necessary due to potential health risks from combustion byproducts.

Specific Bunkering Considerations

  • Similar hazard profile to fossil fuels, but specific standards are still developing.
  • Care needed to avoid contamination and degradation over time.
  • Regulatory challenges exist concerning biofuel blend transportation.

Biofuel Bunker Quality

  • Quality standards similar to conventional fuels, but ongoing development for novel biofuels.
  • LR provides testing and risk assessment services for biofuel use.

Chapter 3: Drivers for Biofuels

Regulations and Lifecycle Analysis

  • EU and IMO regulations drive biofuel adoption for decarbonization.
  • EU's Fit for 55 package introduces several measures to enforce shipping decarbonization.
  • Lifecycle assessment important for proving biofuel GHG reduction.

Shipowner Demand and Interest

  • Increasing trials and adoption of biofuels noted, driven by regulatory compliance and emissions reduction.
  • Biofuels offer a route to lower emissions without costly retrofits.

Techno-economic Drivers

  • Main challenges include fuel availability and production scalability.
  • Biofuel costs are higher but expected to decrease as production scales up.

Chapter 4: Biofuel Production and Supply

Production Methods

  • Various methods include transesterification for FAME and hydrotreatment for HVO.
  • Novel biofuels being explored using diverse feedstocks.

Global Demand and Supply

  • Biofuel production is limited compared to demand, especially with rising aviation fuel requirements.
  • Significant growth in emerging economies expected.

Chapter 5: Technology Readiness

Marine Engines

  • Biofuels broadly compatible with existing engine technologies.
  • Shipboard trials important for testing new biofuel blends.

NOx Emissions

  • Use of biofuels could lead to increased NOx emissions, but generally within regulatory limits.

Chapter 6: Summary and Conclusion

  • Biofuels are a practical short-term solution for shipping's carbon reduction.
  • Similarities to fossil fuels make them easier to adopt without major investments.
  • Availability and sustainability of feedstocks remain key challenges.
  • Certification and regulation crucial for future adoption.

Chapter 7: Links and Resources

  • Includes guidelines and standards for handling and blending biofuels.
  • Provides references to further reading and regulatory documents.