What are biofuels?

Alternative Fuels / CO2-Reductions Jan. 18, 2024

'Biofuel' is a term used to describe a fuel, gas or liquid that derives from biomass or biomass residues.

At the moment, the biofuels that are considered promising in the maritime industry are fatty acid methyl ester (FAME) & hydrotreated vegetable oil (HVO). These types are drop-in biofuels and can be used in existing engines and fuel infrastructure.
However, biofuel covers a large range of other products too, making the overview of different biofuel products, generations, feedstocks, and blends rather complex.

There are three different generations of biofuels, depending on the source from which the fuel is derived:

1st generation biofuels are produced directly from food crops, such as corn, wheat, soybeans, and sugarcane.
2nd and 3rd generation biofuels are not produced from food crops but from non-edible plants and are classed as sustainable.

The infrastructure for the most dominant biofuels is well developed in several ports worldwide, especially the main ones.

For HVO and FAME, which are drop-in biofuels, it is possible to make use of the already established bunkering infrastructure. It is, however, not a global widespread operation outside the main ports.

DB Web Lady Looking Into Computer Fiftyfifty Office 719X719px3

What is FAME and HVO?

FAME is short for fatty acid methyl ester. FAME biodiesel can be blended with conventional fuel of up to 7% and must comply with ISO 8217:2017.

HVO is short for hydrotreated vegetable oil. It is suitable as a drop-in fuel due to its higher technical standards with long-term stability.

How do biofuels impact the environment?

Biofuels have close to zero impact on the environment when it comes to CO2 and SOx emissions. However, the reduction in NOx and Particulate Matter (PM) emissions varies and is somewhat lower.

You need to understand the whole lifecycle of biofuel when looking at GHG emissions, as it will very much depend on the feedstock used and the production process.

When a company sells biofuel, it needs to be certified to preserve the chain of sustainability, and certification proves that the biofuel is produced sustainably.

Check out Dan-Bunkering's certifications

The cost of biofuels

Large energy information providers like S&P Global Platts are providing biofuel price publications, and the customers’ requirements for CO2 reduction have a great impact on the actual price of the delivered product.

The conventional price of bunkers is approximately three times lower than the price of biofuel. Therefore, it is a common choice to burn a blended product of biofuel and conventional bunkers and thereby obtain a more affordable price.

As an example, a blended product that consists of 70% conventional bunker oil and 30% biofuel has an expected additional cost of approx. 40-60%.

What should you as a customer consider?

Is it to reduce emissions using existing engines?

DB Web People In Meeting Fiftyfifty Office 719X719px

Then consider testing the biofuel before using it continuously.

Do you need to fulfil sustainability-linked loans?

Then you need to be aware of the level and the type of emission reduction.

Are you promoting green alternatives to customers?

Then you should consider the complexity of feedstocks and the GHG emissions of same.

Is it part of your CSR strategy?

Then a Proof of Sustainability certificate is important.

Are you choosing biofuels as a short-term investment?

Then supply locations and local restrictions are to be considered.

Safety Considerations

The ISO 8217 standard for fuel requirements in the marine industry also applies to biofuels. For instance, HVO and 7% FAME blend can be used without engine modifications and safety issues and are covered by the ISO 8217 standard, whereas burning other types of biofuels as bunkers is subject to dispensation from the local authorities.

A challenge in terms of safety when using FAME biodiesel is that it degrades in a relatively short period, due to oxidation stability. Due to this, FAME is not to be stored for more than six months.

Furthermore, it is recommended to do thorough testing of biofuels before using them as bunkers.