Our pilot for drop-in biofuels will commence on 1 August 2022, and is expected to take 12 to 18 months to complete.
This pilot aims to establish an assurance framework to ensure the supply chain integrity of current and future green marine fuels.
Photo by Adolfo Félix via Unsplash
In 2018, the International Maritime Organization (IMO) declared its ambition to halve the total annual GHG emissions from international shipping by 2050 compared to 2008 levels. To meet this target, the transition to low-/zero-carbon fuels and technologies is necessary.
The case for biofuels
To meet the International Maritime Organisation’s (IMO) 2030 and 2050 decarbonisation targets, shipowners as well as cargo owners and charterers are exploring the purchase and use of green fuels. Biofuels can be a near-term measure to reduce GHG emissions as they are available today, and they can be deployed in the same way as marine fuels with minimal changes to the existing distribution infrastructure, shipboard technologies, and operational norms of ships. However, there is no industry-wide assurance framework that addresses concerns on the quantity, quality and GHG emissions abatement of biofuels, nor one that safeguards their premium and value. To address this gap, the GCMD-led pilot aims to establish an assurance framework that ensures supply chain transparency of drop-in biofuels, whose applicability can be extended to future drop-in fuels, such as bio-LNG, bio-methanol and green ammonia, when they become available in meaningful quantities.
Targeting the complex supply chain of biofuels
A first-of-its-kind in extent and complexity, the pilot aims to optimise the entire supply chain of bunker fuels by building on the learnings of past shipboard trials involving biofuels. Designed through the lens of the shipowner, piloting will start with fuel blends involving existing biofuels, such as hydrotreated vegetable oil (HVO) and fatty acid methyl esters (FAME) blended with either very low sulphur fuel oil (VLSFO), high-sulphur fuel oil (HSFO) or marine gas oil (MGO) in blends up to 30% biofuels (B30).
Five supply chains of bunkering
UCOME + HSFO/VLSFO (B20, B24)
HVO + MGO (B30)
UCOME + VLSFO (B24)
FAME + VLSFO (B30)
CAO + HSFO/VLSFO (B10)