Biofuels most favoured alternative marine fuel - report

Biofuels have overtaken LNG and LPG as the popular choice for “sustainability planning” among shipowners, a report by UK-based shipping law experts Watson Farley & Williams (WFW) has found.

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WFW says the report is based on interviews with shipowners, charterers, financiers, and a global survey of nearly 500 senior executives from these sectors.

While hydrogen-based fuels like with low- and zero-emission potential like methanol and ammonia are gaining popularity among shipowners, WFW has noted that “replacing gas as the top choice among alternatives are biofuels, which almost 60% of shipowners are considering using by 2028.”

Moreover, 48% of respondents have picked hydrogen as their fuel of choice, while 41% have chosen hydrogen fuel cells to reduce carbon emissions. Around half of respondents are considering wind and solar energy as a source of power for their vessels.

The report also shows that batteries have been losing ground as power "storage technology is not advancing as quickly as expected.”

One of the biggest obstacles to the green fuel transition is the price gap between low- and zero-emission fuels and fossil fuels, as well as access to financing, according to the report. The lack of regulatory clarity, insufficient green fuel infrastructure, and technological barriers have also been highlighted as key challenges.

By Konica Bhatt

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