How to guide on Biofuels
Determine which biofuels can you use on board your vessel to decarbonize
There are many alternatives to regular fossil fuels available on the market. Which one can you use, where can you purchase them and how much would it cost you? This guide helps you determine which bio- or synthetic fuels can be used by your vessel to decrease your emissions. Are you not sure if it applies to you or you have questions on the content? Ask the chatbox for help!
> References
- Sustainable Ships - Biofuels Insights
- ISO - ISO 8217
- Shell - GTL Knowledge Guide
- IMCA - Environmental Sustainability Code of Practice
- Neste - Renewable Diesel Handbook
- EU - Renewable Energy Directive
> Disclaimer
We cannot guarantee 100% accuracy of the information in this blog due to regional and temporal differences in the world’s fuel market. The focus for this blog has been the Rotterdam area. We hope to expand on that soon. Additionally, exact emission reductions are dependent on vessel and operational mode and will vary, this is highlighted with an asterisk. Finally, always ask your supplier on the feedstock of the alternative you use and ask for a proof of sustainability.
> What is our definition of a sustainable biofuel or alternative fuel in general?
'Alternative fuels' are produced from sustainable wastes and residues feedstock, or from fully synthetic sources without fossil carbon as feedstock. Our focus is currently on biofuels as fully synthetic fuels from non-fossil sources are not yet commercially available in large quantities. In line with climate science, most NGOs have two main requirements for biofuels to be viewed as sustainable:
- Low indirect land use change impacts
- High % GHG savings in a lifecycle perspective
When using biofuel must ensure, that we only source biofuels which are considered sustainable due to the significant NGO criticism especially of biofuels from palm, soy and crops due to:
- Biofuels from palm and soy can have very high lifecycle emissions due to direct & indirect land use change leading to lifecycle emissions 2 3 times higher those of fossil fuels compared to direct emissions of fossil fuel, which is the typical benchmark in EU regulation.
- Biofuels from crops such as rapeseed, sunflower and corn also have high emissions due to indirect land use change, where feedstock displace food production from agricultural land.
In the EU, the Renewable Energy Directive (RED) states the rules, regulations and definitions of what a sustainable fuel means.
There is some overlap with hydrogen and hydrogen-related fuels such as ammonia and methanol. Though these can also be considered alternative fuels, they are considered a class on their own and have their own designation at Sustainble Ships.
> 1. Which options are available for HFO?
As far as we are aware at Sustainable Ships, there is only one viable alternative to Heavy Fuel Oil on the market: ‘bio-HFO’. Developed by GoodFuels, their bio-HFO is the world’s first bio-residual fuel. It is produced from (organic) waste streams, directly applicable to replace fossil Heavy Fuel Oil (HFO). It is completely sulphur-free.
There are no adjustments to fleet or infrastructure needed to use bio-HFO, it is a so-called ‘drop-in fuel’ and can be readily blended with fossil derived HFO. This makes it easy to use. For more information, contact GoodFuels.
> 2. Which options are available for MGO?
There are currently three alternatives for MGO that have been identified by Sustainable Ships.
HVO Hydrotreated Vegetable Oil is a bio-distillate fuel produced by means of the Fischer-Tropsch process. HVO is a synthetic diesel, produced out of vegetable waste streams, and is directly applicable to replace fossil diesel. It is completely sulphur-free. There are no adjustments to fleet or infrastructure needed to use HVO, it is a so-called ‘drop-in fuel’ and can be readily blended with fossil derived MGO. This makes it easy to use.
- Click here for Neste's guide on HVO (biodiesel).
- Compliant with ISO 8217:DMA specification.
FAME - Fatty Acid Methyl Ester (2nd generation) has been the generic chemical term for biodiesel derived from renewable sources on land. It is created by transesterification of vegetable oils to make biodiesel. Due to the high oxygen content of FAME, good housekeeping is required to prevent marine growth and bio-contaminants of the fuel on-board. In most cases, adjustments to fleet or infrastructure are needed. It is not a so-called ‘drop-in fuel’ and cannot be readily blended with fossil derived HFO. This makes it more challenging from an operational standpoint. The worldwide availability however makes it a cheaper alternative to HVO.
- Technical specs are soon to follow. Click here to download a guideline for shipowners on managing distillate fuels with up to 7% FAME levels.
GTL - Gas-to-Liquid is the same product as HVO from a chemical standpoint, as both are a paraffinic fuel produced by means of the Fischer-Tropsch process. GTL however is derived from fossil feedstock, and can be purchased together with carbon credits to offset all emissions. This might make it feel like cheating to some, but it is a cheaper alternative for a high-grade carbon neutral fuel. There are no adjustments to fleet or infrastructure needed to use GTL, it is a so-called ‘drop-in fuel’ and can be readily blended with fossil derived MGO. This makes it easy to use.
- Click here for the Shell Knowledge Guide on GTL.
- Compliant with ISO 8217:DMA specification.
> 3. How are (carbon) emissions reduced?
The stated emissions reductions are indicative and vary depending on fuel batch, supply chain and vessel. No rights can be claimed from this infographic.
CO2 - The stated reduction are well-to-propeller emissions. This means that carbon emission reduction in the entire supply chain is taken into consideration, not just the local emissions of the vessel during operation (which are also referred to as tank-to-propeller emissions). Even though all sustainable alternatives should have 100% reduction of carbon emissions upon combustion, usually a reduction of only 85%-90% is achieved. This is due to the fact that carbon emissions are produced in the supply chain upstream. The main source of carbon emissions in the supply chain for most alternative fuels, is the production process. Emissions caused by transport are usually not significant. Each batch of alternative fuels has its own amount of savings depending on geography, feedstock and others. This should be clearly marked on the ‘proof of sustainability’ upon purchase.
NOx - Emission reduction for nitrous oxides are achieved due to the fact that biofuels and synthetic alternatives are much ‘cleaner’ fuels from a chemical standpoint. They should not contain any aromates or other contaminants. Fuel purity and single flash point ensures a more homogenous combustion, thus causing less NOx emissions. It should be noted however that these reductions vary (heavily) on engine age and settings, with reduction ranging from virtually none to almost 30% in some case.
SOx - All stated fuels are sulphur-free and should cause no sulphur emissions. There is however still the possibility of contamination of the alternative fuel with a fossil product in the supply chain. For example, while transporting the fuel in tankers, it could be the case that the tankers were filled with a fossil product and residues are left in the tanker. This will cause a trace amount of sulphur emissions for the alternative fuel.
> 4. Where can you purchase it?
The list of vendors at the moment is limited to the suppliers that Sustainable Ships has experience with. We generally recommend GoodFuels for the marine industry as they have a proven track record on sustainability. Their products are commonly produced by Neste, a proven source for biofuels. You can always ask your supplier if they can provide you with these products. Make sure to ask for a Bunker Delivery Note with a ‘Proof of Sustainability’ per order. You can find more information on Neste's biofuel here.
One of the most frequently asked question is whether there is enough biomass around to fuel the transport sector, in particular the maritime and offshore industry. We investigated this in a blog called "Is there Enough Biomass to Fuel the World?". The answer is yes, though it will take time to scale if we are to provide the entire industry with biomass.
At the moment however, bunkering batches of up to 7000 metric tons are possible in the Rotterdam area. In case you wonder where these fuels are produced, check out this Biorefinery Map by the Nova Institute. An updated version will follow soon.
> 5. How much does it cost?
Prices are indicative (!) and ‘relative to fossil fuel’. For example, bio-HFO has roughly achieved price-parity compared to regular HFO in Rotterdam area, placing the price at 100%. The most expensive alternative fuel at the moment is HVO, which can cost you up to double the normal price with respect to MGO. GTL is coupled to the regular fuel price with a premium, which is in the order of a few percent usually.
Again, these prices are indicative and will vary (significantly) outside the Rotterdam area. They are intended to provide a guideline for rough decision making and to show that in some cases, biofuels can be close to regular fuel prices. As always, ask your supplier or our community for more information. We hope to have a better overview of prices in the future.