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Are biofuels a driver for decarbonisation?

Learning from the Past Maritime History Transitions

Page author

Anna Grybenyuk, Researcher

Anna Grybenyuk graduated from the University of St Andrews with a degree in Modern History and Russian in 2016, then again with an MLitt in Museum and Gallery Studies in 2020. Much of her knowledge of fishing and maritime activity comes from working at the Scottish Fisheries Museum, and from living so long by the coast. She currently works in Oxford, managing digital collections for the Pitt Rivers Museum and History of Science Museum. It is far from the sea, but she will take any opportunity to head back to the coast to spot birds and boats alike.

Introduction

Decarbonisation is a major talking point in the shipping industry, and for good reason; the sector is responsible for 3% of annual global greenhouse gas emissions. There is a lot of work to do before the global maritime fleet is ready to meet the goals being set by the International Maritime Organization (IMO) to reduce and phase out emissions1. Every promising potential technology must therefore be explored. One of these potential technologies is biofuels, which are fuels made from plant matter including but not limited to soya, grass, wood, or even algae2. They can also be produced from waste cooking oil or animal fat3. There are many different types of biofuels, with each having promise and problems. All of these are worth looking into and seeing what it will take for biofuels to be able to drive the world’s fleet into a greener future. 

Types of biofuels

The most commonly talked about biofuels are fatty acid methyl esters (FAME) and hydrogenated vegetable oils (HVO). These may also be called biodiesel and green or renewable diesel. They are the most established and well-known biofuels available. FAMEs are produced from vegetable and animal oils, and used cooking oils, while HVOs may also be produced from waste crops or wood4. Biodiesel is often considered a first generation biofuel, meaning it is made from food crops. Green diesel may be second generation if they are made not from food crops, but from waste products left after harvest or forestry work. Other second generation biofuels are green or bio-ethanol and methanol, which are typically made from either agricultural by-products, food waste, sewage, or even carbon capture as in the case of e-methanol5. There is research into third generation biofuels made from algae, but this is not yet widely available6. 

Photograph of a vibrant yellow oilseed rape field bordered by lush green woodland under a blue sky.
Canola plants growing, a common crop for the production of first generation biofuels. Gerda Arendt, CC BY-SA 4.0, via Wikimedia Commons.

A clean fuel for shipping

Regardless of their source, biofuels are considered carbon neutral because they are made from sources that removed carbon from the air during their growth. Therefore, any carbon released during their use is carbon that was already present, not carbon that was locked away and released as is the case with fossil fuels7. Overall, biofuels tend to be a very clean fuel. When properly used HVOs burn with a 90% reduction in net carbon dioxide and significant decrease of carbon monoxide, nitrous oxide, and particulate matter8.  

Biofuels’ similarity to petroleum products means a normal ship’s engine can run off many biofuels with no to minimal modification, nor do crew need additional training to make use of them9, though this will vary depending on the type of biofuel and engine. Furthermore, a ship does not have to run entirely off biofuel to have an effect on emissions. A 10% blend of HVOs into conventional diesel has the effect of making it cleaner by reducing sulphur oxide emission and overall making the fuel more efficient10. A similar reduction has been shown for nitrous oxide and carbon dioxide, with more biofuels providing a higher reduction, although the maximum effective reduction corresponded to a 10-20% blend11. Unlike other alternative fuels, biofuels are not a take-it-or-leave-it option. Even blending fuels in the transition would lead to a reduction in emissions. Not needing to do much conversion also means that companies can adopt biofuels more quickly, without the need to do costly overhauls on their whole fleet. 

Challenges in conversion

However, the conversion to biofuels is not without challenges. One is a lack of production at scale, which means they are currently more expensive than conventional fossil fuels. One study pointed to the cost of bio-ethanol being 22-25 euros per gigajoule, considerably more than carbon-based fuels, and production in Europe would not be able to meet a high demand scenario by 203012. To bridge the price gap, the EU has been recommended to introduce regulations to manage the price in order to help encourage adoption13. 

Storage is also an issue. Biofuels require storage conditions different from regular fuel oil. They are more prone to contamination by water, dirt, or bacteria, and may be affected by low temperatures, plus biofuels can act as a solvent to rubber or some plastics14. Bio-methanol is even more complicated to bunker as it has a low flashpoint and is hazardous to health15. Bunkering biofuels will therefore need to take these risks into consideration. The port of Rotterdam wishes to solve these problems by building 100,000 cubic metres of storage, adding over a third of their current capacity meet growing demand16. However, this is one port. More infrastructure will be needed across the world to accommodate biofuels, both in their production and bunkering. 

Masol Iberia Biofuel industrial facility with large storage tanks and cranes, viewed across calm water.
Biodiesel plant in the port of Castellón, 2024. Juan Emilio Prades Bel, CC BY 4.0, via Wikimedia Commons. https://commons.wikimedia.org/wiki/File:Planta_de_biodi%C3%A9sel_del_puerto_de_Castell%C3%B3n.jpg

Impact of production

Another important thing to consider is the environmental impact of growing biomass to make these fuels. If first generation fuels become the biofuel of choice, it will require much greater investment in agriculture. This may exacerbate the pressure of intensive farming on the environment, such as deforestation, water consumption, and the biodiversity loss created by monocultures. Indigenous lands may also be put at risk by expanding farming for biomass. There is likewise a concern for those regions that struggle with food security if agricultural crops are used to create fuels17. Due to these concerns, several conservation groups like Biofuelwatch and Global Forest Coalition protested outside the IMO’s headquarters in April 202618. If biofuels are to become a viable alternative, it is imperative that there is significant research and investment in second and even third generation biofuel alternatives so as to minimise reliance on food crops. The risk of fraud, where biofuels produced unsustainably are sold as sustainable, must also be dressed to prevent biodiversity loss either through strict regulation or certification19. 

Greenpeace activists in orangutan costumes hold a banner accusing Neste Oil of destroying rainforests, on a city street.
Greenpeace protesting the use of biodiesel made from palm oil, 2010. Lauri Myllyvirta Greenpeace from Helsinki, Finland, CC BY 2.0, via Wikimedia Commons.https://commons.wikimedia.org/wiki/File:Greenpeace_biodiesel_demonstration.jpg

Growing demand

Despite challenges, the demand for biofuels across the world is growing. Singapore - the world’s largest bunkering port - recorded a rise in biofuel bunkering from 0.52 million tonnes in 2023 to 0.88 million tonnes in 202420. Competition from aviation and the automotive industry will further drive demand. Significant scaling up of production will therefore be required to satisfy all sectors. However, there is growth. In 2025, a project in Denmark and two projects in China started first-of-its-kind industrial operations producing bio-methanoll21. It may not seem like much, but it is a start. 

Work to reach potential

Biofuels have a lot of potential for the maritime sector, but as with all alternative fuel sources, there is still much work to do before they can drive the world’s maritime fleet. The biofuel production industry needs to scale up while remaining as green as possible, and infrastructure will be needed to bunker and supply biofuels in more ports. A great challenge, but if it can be overcome, the technology can be easily adopted. Even a little can go a long way. Biofuels can be blended with diesel and thus aid a gradual transition. Given how complex and vast a problem climate change is, even a small step can make a big impact. There is already interest and growth in the industry. Time will tell if that growth becomes exponential.

Bibliography

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Lerh, Jeslyn. “Australia’s BHP Explores Ship Biofuel Blend Made from Cooking Oil, Animal Fat.” Reuters, 3 June 2026, www.reuters.com/business/energy/australias-bhp-explores-ship-biofuel-blend-made-cooking-oil-animal-fat-2026-06-03/. 

“STR to Add New Storage Capacity for Marine Biofuels and Methanol in Rotterdam.” Ship and Bunker, 18 June 2026, https://shipandbunker.com/news/emea/451976-str-to-add-new-storage-capacity-for-marine-biofuels-and-methanol-in-rotterdam. 

“Strong Growth Momentum for Maritime Singapore.” Maritime and Port Authority of Singapore, 15 Jan. 2025, www.mpa.gov.sg/media-centre/details/strong-growth-momentum-for-maritime-singapore. Press release. 

Study of Safe Bunkering of Biofuel Final Report Part 1, 2 & 3. European Maritime Safety Agency (EMSA), Lisbon, 2024.   

Sagin, Sergii V., et al. “Use of Biofuels in Marine Diesel Engines for Sustainable and Safe Maritime Transport.” Renewable Energy, vol. 224, Apr. 2024, p. 120221, https://doi.org/10.1016/j.renene.2024.120221. 

Stathatou, Patritsia Maria, et al. “Towards decarbonization of shipping: Direct Emissions & Life Cycle Impacts from a Biofuel Trial Aboard an Ocean-Going Dry Bulk Vessel.” Sustainable Energy & Fuels, vol. 6, no. 7, 2022, pp. 1687–1697, https://doi.org/10.1039/d1se01495a. 

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