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DNV: Growing demand and bunker fuel uncertainties add to complexity of shipping’s decarbonisation

Decarbonisation seen as a chance for shipowners to differentiate, attract new cargo, and foster closer collaborations with customers, shares Jason Stefanatos, Global Decarbonization Director, DNV.

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The global shipping industry is grappling with the dual challenge of increasing transport volumes and an urgent need to decarbonise, transforming its perception of environmental mandates from a threat to a significant opportunity, believes Jason Stefanatos, Global Decarbonization Director, DNV.

During his keynote presentation New Fuels in the Shipping Industry at the IBIA Annual Convention 2025 in Hong Kong on Tuesday (18 November) Stefanatos forecasted a consistent rise in all transport segments, creating a substantial hurdle for an industry such as shipping to reduce its carbon footprint.

While specific figures vary, the overarching trend points to growth, compelling stakeholders to seek innovative solutions. Initially viewed with apprehension, decarbonisation is increasingly seen as a chance for shipowners to differentiate, attract new cargo, and foster closer collaborations with customers.

The following were Stefanatos’ observations:

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Fleet Readiness and Future Capacity

Currently, 8.9% of the global fleet is capable of burning alternative marine fuels, with liquified natural gas (LNG) holding the largest share due to its mature infrastructure and technology.

This figure, while seemingly small, represents significant progress in recent years. Looking ahead, the order book paints a more optimistic picture: over half of new vessels on order are designed with alternative fuel capabilities, signalling a substantial future shift.

However, this adoption is not uniform; segments like containerships, cruise liners, and car carriers show high uptake (75-80%), driven by end-users willing to pay a premium for greener products, while bulkers and tankers lag due to different commercial dynamics.

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The Looming Fuel Supply Gap

By 2030, based on existing orders and continued ordering rates, the global fleet could theoretically have the capacity to burn nearly 50 million metric tonnes of alternative marine fuels annually. This represents a significant portion compared to the industry’s total annual consumption of 280 million tons.

Yet, a critical challenge emerges on the supply side: under current net-zero frameworks, shipping would require 30% to 60% of the global green fuel production to avoid penalties. This is a stark contrast to shipping’s current 3-4% share of the global energy mix, raising concerns about competition with other sectors and the industry’s ability to secure sufficient green fuel at competitive prices.

Navigating the Alternative Marine Fuels Landscape

There is no single “golden solution” for decarbonisation; each bunker fuel option presents a unique set of technological, economic, safety, availability, and greenhouse gas credentials. The industry is primarily focusing on four key solutions:

  • LNG: The most mature alternative fuel, with over 1,300 non-LNG carrier vessels already capable of using it and a wide bunkering infrastructure. Its fossil nature and methane slip concerns remain key challenges, though it offers a pathway to renewable natural gas.
  • Methanol: Valued for its simplicity as a liquid fuel, making port infrastructure development easier and cheaper than for gas fuels. While fossil methanol has worse emissions than Heavy Fuel Oil (HFO), green methanol can meet 2050 targets. Regional dynamics, such as China’s focus on green methanol production, are significantly influencing its uptake, particularly among bulk carriers trading in the region.
  • Ammonia: A carbon-free molecule, offering the potential for actual zero emissions at the point of combustion. However, its well-to-wake emissions depend heavily on the production pathway, and engine technology is still in development, with major makers expected to deliver engines this or next year.
  • Biofuels: Offers a “quick fix” with minimal retrofits for compliance. However, their scalability is severely limited by the availability of sustainable biomass, with shipping currently consuming only 0.6% of global biofuels, facing intense competition from road and aviation sectors. The need for flexible chains of custody and robust global certification schemes is crucial to accelerate adoption.

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Uncertainty and the Call for Flexibility

“The path forward is marked by persistent uncertainty in regulations, supply chains, and technological advancements. Easy decision-making is not anticipated anytime soon,” concluded Stefanatos.

“Therefore, flexibility is paramount for shipowners, bunker suppliers, and fuel producers alike, recognising the complex interplay between production, distribution, and consumption in this evolving landscape.”

 

Photo credit: Manifold Times
Published: 26 November 2025

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Biofuel

BHP and GCMD trial multi-feedstock B100 bio bunker fuel on bulk carrier

Bio-blend in the BHP and GCMD pilot is being used on a BHP-chartered bulk carrier “Berge Lyngor”, which was bunkered in Singapore in early May.

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BHP and GCMD trial multi-feedstock B100 bio bunker fuel on bulk carrier

BHP and the Global Centre for Maritime Decarbonisation (GCMD) on Wednesday (3 June) said they have blended biofuels from two distinct feedstocks—used cooking oil and waste animal fats —and introduced the lower-emissions marine fuel into a BHP-chartered bulk carrier as part of a pilot project.

The bio-blend in the BHP and GCMD pilot is being used on a BHP-chartered bulk carrier Berge Lyngor, owned and operated by Berge Bulk, transporting BHP iron ore from Western Australia to China. When run on bio-blend, the vessel has the potential to reduce well-to-wake greenhouse gas emissions by approximately 79 per cent per voyage compared to sailing on very low sulphur fuel oil (VLSFO).

The vessel bunkered in Singapore in early May with a B100 bio-blend comprising 50 percent tallow-derived biodiesel, sourced and supplied by HAMR Energy, and 50 per cent used cooking oil (UCOME) supplied by Mitsui & Co Energy Trading Singapore (METS).

Mitsui also blended the fuel and Dan-Bunkering coordinated and executed the bunkering operation, which was performed by Global Energy’s barge MT Maple.

The BHP and GCMD pilot will assess how biofuels from multiple feedstocks can be blended, handled, and introduced under real-world operating conditions using existing used cooking oil bunkering infrastructure.

At the same time, insights from this pilot will help identify solutions to challenges related to fuel quality, handling, traceability, and onboard vessel performance.

Biofuels for global shipping today rely heavily on used cooking oil – a feedstock whose availability is approaching its projected limits. Biofuel from waste animal fats presents a promising option to expand the supply of lower-emissions marine fuels.

The outcomes of the pilot are expected to shed light on the practical steps to integrate biofuel blends from different feedstocks into existing supply chains. The diversity of biofuels will provide shipowners and operators with greater flexibility to optimise fuel procurement based on cost, availability, and lifecycle emissions performance.

Biofuels derived from different feedstocks can exhibit varying properties that may impact operations, including potential corrosion from oxidation, fuel system clogging caused by wax formation, which this pilot aims to assess.

The pilot will trace and verify the biofuel blend’s integrity aimed at bolstering confidence in emissions reductions reporting. The pilot will also provide insights into how robust tracing can support future marine fuel supply chains where biofuels from multiple feedstocks with varying lifecycle greenhouse gas emissions footprints are blended together.

This project is co-funded by the Maritime and Port Authority of Singapore under the Maritime Innovation and Technology Fund (MINT).

 

Photo credit: Global Centre for Maritime Decarbonisation
Published: 3 June, 2026

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Biofuel

NYK starts one-year B100 bio bunker fuel trial on car carrier

In this trial, NYK will operate a car carrier continuously on B100 for one year to evaluate the impact on engines, fuel supply systems, and operational practices.

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NYK starts one-year B100 bio bunker fuel trial on car carrier

Japanese shipping firm NYK on Tuesday (2 June) said it has commenced a one-year long-term trial involving the continuous use of 100% biofuel (B100) on an NYK-operated car carrier. 

In this trial, NYK will operate a car carrier continuously on B100 for one year to evaluate the impact on engines, fuel supply systems, and operational practices. High-purity biofuels such as B100 are known to be susceptible to degradation from oxygen, light, and heat, raising concerns about the stability of such fuels during long-term use.

In this trial, the biofuel primarily comprises FAME (Fatty Acid Methyl Ester) derived from used cooking oil and similar feedstocks.

The initiative is designed to evaluate the fuel’s effects on the vessel’s equipment and verify operational safety under real-world conditions. 

Through this effort, NYK seeks to accumulate technical expertise that will support the broader use of high-purity biofuels and further accelerate efforts to reduce greenhouse gas (GHG) emissions.

NYK has been advancing the use of biofuels through various initiatives. In 2024, the company conducted a trial using biofuel blend B24 and subsequently expanded practical usage to B30. However, the company said there remains limited global experience with the long-term continuous use of B100.

“By collecting long-term operational data through this trial, NYK aims to accumulate valuable technical insights to support both the safe operation of vessels and the wider adoption of high-purity biofuels,” it said. 

 

Photo credit: NYK
Published: 3 June, 2026

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Ammonia

AM Green plans to build green ammonia plant at Indian port

Initiative also includes development of green ammonia handling, storage and bunkering infrastructure, pilot bunkering operations, safety procedures and training programmes, says VOC Port Authority.

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VO Chidambaranar (VOC) Port Authority on Friday (29 May) said it has signed a Memorandum of Understanding (MoU) with India’s ammonia producer AM Green Ammonia to collaborate in the development of a green ammonia production plant.

The plant will have a capacity of one million tonnes per annum (MTPA) at Tuticorin.

The initiative also includes development of green ammonia handling, storage and bunkering infrastructure, pilot bunkering operations, safety procedures and training programmes. 

The project is expected to support the development of green fuel corridors connecting VOC Port with major ports in Europe and Asia, thereby strengthening India’s position in the global green fuels value chain.

VOC Port also signed a Memorandum of Understanding (MoU) with Bureau Veritas (India) Pvt. Ltd., to collaborate on Green Port certification, emissions accounting, ESG reporting, safety validation, development of green bunkering practices, and establishment of a Centre of Excellence for green fuels and sustainability.

The port also plans for an upcoming 750 m³ green methanol bunkering facility.

 

Photo credit: Naveed Ahmed on Unsplash
Published: 3 June, 2026

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