Supply Chain Council of European Union | Scceu.org
Transportation

EMSA: Advantages and challenges of biofuels in shipping

EMSA published a study identifying the key advantages in the use of biofuels in shipping and the remaining challenges, technology and regulatory gaps restricting immediate application.

Advantages

According to the report, in absence of other alternative fuels, biofuels are currently a viable fuel option to support shipping’s decarbonisation. This is mainly due to its drop-in nature allowing its direct use onboard without (any) substantial retrofitting or unsurmountable risk related implications.

In addition, many of these biofuels are currently available, although not in sufficient quantities. Moreover, although regulation could be updated and improved for better inclusion of biofuels, many of the current regulations can be directly or indirectly applied to biofuels due to their similarity to fossil fuels. All these combined are the main facilitators for the adoption of biofuels currently.

Barriers

However, there are still barriers preventing a wider adoption of biofuels. One of them relates to their fuel costs which could benefit from a levy or an emission trading mechanism.

Currently, operating on a biofuel can double or triple the fuel costs. Although at a regional scale, the future adoption of the Fit-for-55 package is expected to provide a major incentive to these fuels

said EMSA, adding that with the upcoming discussions on Market Based Measures at IMO, it is expected that this barrier to be unlocked in the coming years.

Currently, one of the biggest barriers to the adoption of biofuels is the lack of international and cross-industry regulations/standards on the sustainability criteria. As depicted in the study, there is a multitude of pathways to produce biofuels and some of them may present a bigger harm to nature than their fossil equivalent.

There are currently several standards outlining the greenhouse impact of the production of these fuels and the sustainability criteria to which they need to comply, and they differ among themselves.

As shipping, road transportation, aviation, industry and others are and will be competing for the supply of biofuels, although IMO is currently discussing the creation of maritime fuels lifecycle guidelines, it is important to seek consistency with the other equivalent guidelines from the other industries. This is to ensure a harmonized and equitable consideration of the biofuels across industries.

Furthermore, EMSA notes that a harmonized set of suitable criteria can support a proper focus of investments and a set of carbon tax or fuel levies promoting the adoption and the production of biofuels that present a real potential to decarbonise shipping.

Although seen as a viable option for deepsea shipping, as demonstrated in this report, some aspects such as its limited (and regional) availability may make it also a perfect fit for segments of the industry demanding a lower usage of fuels such as short-sea shipping, fishing vessels, offshore energy production supporting vessels, tugs, etc

the report concludes.