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Jun 7, 2023


DNV: BIOFUEL USAGE IN MARITIME INDUSTRY ON THE INCREASE

DNV’s latest white paper Biofuels in shipping has highlighted how the
flexibility of biofuels can enable the shipping industry to accelerate its
journey towards decarbonisation while maintaining operational efficiency.
Its paper added that current limitations in production capacity could impact
short-term supply and create stiff competition with other sectors.
With the shipping industry getting ready to meet decarbonisation requirements,
the use of biofuels is on the rise.
The current global production capacity of sustainable biofuels is around 11
million tonnes of oil equivalent (Mtoe) per year.
DNV predicts that a sustainable and economically viable supply of biofuels,
ranging from 500 to 1300 Mtoe annually, can be achieved by 2050.
However, to fully decarbonise shipping using biofuels, in combination with
energy efficiency measures, an annual supply of 250 Mtoe of sustainable biofuels
is required by 2050. This would represent 20-50% of potential global production.
“Biofuels are poised to play a notable role in the decarbonisation of shipping.
Nevertheless, existing constraints on production capacity and competition from
other sectors is likely to impact short-term supply to the maritime industry,”
said Eirik Ovrum, principal consultant in DNV environment advisor.
“A major build-up of sustainable production capacity is needed before biofuels
can reach their full potential and thus shipping’s goal of decarbonising will
need to be achieved in combination with energy efficiency measures as well as
use of other low carbon fuels alternatives.”
Regulatory developments, such as The EU Emissions Trading System (EU ETS),
present a strong incentive for embracing biofuels, making both biofuels and
biomass highly sought after by various sectors as they strive for
decarbonisation.
These resources are also currently being used in cooking, water and space
heating, as well as timber and pulp and paper production posing some challenges
to production capacity and availability.
The white paper addressed these challenges by shedding light on the potential
role of biofuels in enabling the decarbonisation of shipping, while also
offering practical advice on the necessary preparations before integrating
biofuels onboard vessels.












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