Biofuel

DNV: Maximizing the potential of bio bunker fuels in shipping

DNV summarizes its white paper examining the growing uptake of biofuels in shipping, bunkering trends and provides practical guidance around their use.

Published

1 year ago

April 7, 2025

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DNV: Maximizing the potential of bio bunker fuels in shipping

Classification society DNV recently published a Maritime Impact article to summarize its white paper examining the growing uptake of biofuels in shipping, bunkering trends and provides practical guidance around their use:

Biofuels are an increasingly attractive decarbonization option for shipowners. A new white paper from DNV analyses an evolving supply picture, while also providing technical guidance to shipowners planning to use it as a drop-in fuel.

Growing international pressure to decarbonize shipping has seen a significant increase in demand for biofuels in recent years. With several biofuels seen as “sustainable”, these can provide immediate decarbonization results for shipowners. However, as the new DNV white paper explains, supply is limited, and some technical and operational considerations should still be taken into account by shipowners before and during their use.

Biofuel as a decarbonization option

Although most biofuels contain carbon, which is released as CO2 during combustion, many can still lead to significant reductions in carbon emissions.

“This is because of the carbon cycle,” says Øyvind Sekkesæter, Consultant in Maritime Environmental Technology at DNV and lead author of DNV’s white paper. “When biomass grows, it absorbs CO2 from the atmosphere. This can, in theory, negate the release of CO2 when biofuel is burned.”

“However, in a life cycle perspective, there will still be emissions related to the harvesting of biomass, transportation and processing, meaning that 100% carbon neutrality is difficult to achieve in practice. This is particularly relevant now that shipping regulations, such as FuelEU Maritime, consider emissions on a ‘well-to-wake’ basis.”

Drop-in capability

Perhaps the most attractive aspect of biofuels is their ability to be used as a “drop-in” fuel on existing vessels. This means that biodiesels like FAME (fatty acid methyl ester) and HVO (hydrotreated vegetable oil) – the two most commonly used biofuels in shipping today – can be used to fuel vessels designed for operation on conventional fuel oils, while liquefied biogas, or bio-LNG, can be used directly on board LNG-capable vessels. They can be either stand-alone fuel products or blends with conventional fuels.

“This drop-in capability is very important, because it means that many biofuels can be applied directly to the existing fleet, where other decarbonization options might be difficult,” says Sekkesæter. “This is understandably an appealing choice for shipowners as it enables them to significantly reduce emissions without, for example, large-scale investment in engine retrofitting.”

Supply of biofuels

According to the white paper, the total global production of liquid biofuels (primarily ethanol, FAME and HVO) and biogases reached about 111 and 41 million tonnes of oil equivalent (Mtoe) respectively in 2023. The paper also estimates that about 15% of liquid and 65% of gaseous biofuels were based on advanced feedstocks as defined according to the EU Renewable Energy Directive.

t1 ind 582 end use sectors for liquid biofuels and gaseous biofuels

Shipping’s share of global supply is extremely low. In 2023, this was around 0.7 Mtoe, accounting for about 0.6% of the global supply of liquid biofuels. This was similar to aviation, which accounted for around 0.5% of global supply in 2023. Road transport remains the prevalent user of biofuels, taking 98.9% of global liquid biofuel supply in 2023.

In 2023, biofuels accounted for just 0.3% of marine energy use.

Bunkering of biofuels mapped out

For biofuels to play a major role in maritime decarbonization, supply and availability in major bunkering hubs will need to increase. Through a systematic review of public information, the DNV white paper has identified more than 60 ports where biofuel bunkering has taken place since 2015. While bunkering availability is quite geographically diverse, it is mainly concentrated in Europe and East Asia. Availability in North America, South America and Africa is more limited in comparison.

“While our research shows us that the supply of biofuels is still relatively low, bunkering has taken place in quite a high number of ports,” says Sekkesæter. “Additionally, data from Singapore and Rotterdam – the two largest bunkering hubs – shows that biofuel consumption in shipping is growing quite quickly.”

Increasing biofuel sales in Singapore and Rotterdam

Total sales of bio-blended fuel in Singapore and Rotterdam increased from about 300,000 tonnes in 2021 to more than 1.6 million tonnes in 2024. The most common blend sold in Singapore has so far been B24 (meaning 24% biofuel by volume), while in Rotterdam it has been B30. In both cases, the biofuel blends primarily incorporate FAME and VLSFO (very low sulphur fuel oil).

t2 ind 582 reported bunker sales of bio blended fuel

Sales from these two ports were estimated to account for around half of all biofuel supply to shipping in 2023.

Demand for these blends is clearly on the rise, despite their additional cost to shipowners. “Both B24 and B30 have traded at a price premium of 30% to 60% relative to VLSFO since 2023,” says Sekkesæter.

Note: The full version of DNV’s Maritime Impact article on biofuels can be read here.

Photo credit: DNV
Published: 7 April, 2025

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Alternative Fuels

Olam Agri, Vitol Bunkers wrap up co-processed VLSFO bio-bunkering operation in Singapore

“MV Scion Mathilda” was supplied with 246.5 mt of co-processed VLSFO at the Port of Singapore, comprising 212 mt of conventional VLSFO and 34.5 mt of co-processed CNSL VLSFO.

Published

6 hours ago

August 21, 2026

Admin

Olam Agri, Vitol Bunkers wrap up co-processed VLSFO bio-bunkering operation in Singapore

Agri-business Olam Agri on Thursday (20 August) said it successfully completed Singapore’s first bio-bunkering operation with Vitol Bunkers, using Very Low Sulphur Fuel Oil (VLSFO) co-processed with Cashew Nutshell Liquid (CNSL), showcasing a waste-to-energy approach.

MV Scion Mathilda was supplied with 246.5 metric tonnes (mt) of co-processed VLSFO at the Port of Singapore, comprising 212 mt of conventional VLSFO and 34.5 mt of co-processed CNSL VLSFO. The product was supplied by Vitol Bunkers and procured by Olam Agri’s ocean freight business.

The fuel was subsequently consumed during a voyage from Caofeidian (China) to Rotterdam (Netherlands), followed by a ballast leg from Rotterdam to Barcarena (Brazil).

Total fuel consumption across the voyage comprised 1,354 mt of VLSFO, 101 mt of MGO and 34.1 mt of co-processed VLSFO. The vessel completed the voyage without any operational remarks, confirming the product’s performance in real-world conditions.

The operation marks a significant step forward in the search for practical, scalable alternatives to conventional marine fuels, and demonstrates that meaningful greenhouse gas (GHG) reductions can be achieved without any change to vessel operations.

Martin Fynbo, Head of Bunkers at Olam Agri’s ocean freight business, said: “The successful deployment of this product, achieving verified greenhouse gas mitigation alongside ensuring operational integrity, serves as a definitive proof of concept. This milestone provides validation to a traditionally risk-averse sector, demonstrating that a previously disregarded bio-product solution can both be operationally viable and sustainable.”

Sherman Yeo, Trading Manager, Vitol Bunkers, said: “This operation proves that co-processed VLSFO can be delivered and consumed at sea without any compromise to vessel performance or operational routine. The mass balance solution we have developed opens up a genuinely new avenue for GHG reduction in marine fuels.”

The co-processed VLSFO carries a GHG intensity of 2.02 gCO2eq/MJ, delivering savings of at least 120 MT CO2eq compared with conventional VLSFO on an equivalent basis. This outcome was achieved with no additional onboard handling or fuel treatment requirements.

Vitol’s co-processing and mass balancing methodology resolves a longstanding challenge in the use of CNSL as a marine biofuel. Direct blending of CNSL has historically been dismissed by the industry due to material compatibility and handling issues. By co-processing CNSL within the refinery stream, Vitol has opened a commercially viable pathway for CNSL to contribute to GHG reduction in shipping.

The co-processed VLSFO used in this operation conforms to RMG380 VLSFO grade and has the same chemical composition and quality as conventional fuel, eliminating the need for additional permissions or special clauses in charter party agreements.

“CNSL, derived as a by-product of cashew processing, represents an underutilised feedstock with genuine potential as a scalable marine biofuel component,” Olam Agri added.

“This trial demonstrates that with the right processing approach, it can be integrated into existing supply chains without disruption.”

Photo credit: Vitol
Published: 21 August, 2026

Alternative Fuels

ClassNK updates safety guidelines for alternative-fuelled ships

The classification society says it has revised the safety requirements within its guidelines for ships using methanol, ethanol and hydrogen as marine fuels.

Published

1 day ago

August 20, 2026

Admin

Classification society ClassNK on Tuesday (18 August) said it has revised the safety requirements within its guidelines for ships using methanol, ethanol and hydrogen as marine fuels.

In Part D of the guidelines, covering hydrogen-fuelled ships, the revision incorporates the Interim Guidelines for the Safety of Ships Using Hydrogen as Fuel (MSC.1/Circ.1701) issued by the IMO this year, and additionally introduces a hydrogen leak frequency table that can be used for the safety assessments required under the IMO guidelines.

In Part A, covering methanol and ethanol-fuelled ships, new structural strength requirements for methanol/ethanol fuel tanks—which are not addressed in the IMO guidelines—have been established.

“Through this revision, shipyards, designers, and shipowners can carry out design and safety assessments in line with the latest international standards, and by utilizing ClassNK’s own leak frequency estimates and the relevant requirements, they can proceed the development of alternative-fuelled ships in a more rationally,” ClassNK said in a statement.

As the building of alternative-fuelled ships advances in response to the global challenge of reducing GHG emissions, ClassNK has comprehensively compiled the safety requirements for ships using methanol, ethanol, LPG, ammonia, and hydrogen—fuels regarded as promising alternatives—and has issued the guidelines.

“Taking into account the risks that the use of alternative fuels poses to the environment, seafarers, and ships, the guidelines set out requirements for equipment, controls, and safety devices to minimize such risks,” it added.

With the issuance of the IMO guidelines for hydrogen-fueled ships (MSC.1/Circ.1701), ClassNK said it has fully incorporated the IMO guidelines to make the guidelines more user-friendly for shipyards, designers, and shipowners, while also enhancing the requirements serving as design and assessment guidance for other alternative fuels.

In the development of the IMO guidelines, now reflected in Part D, ClassNK participated as a member of the Japanese delegation to the IMO Sub-Committee CCC 11 and contributed to the discussions.

Note: The Guidelines for Ships Using Alternative Fuels (Edition 3.1) can be viewed under “Guidelines” on My Page by registering as a user on the ClassNK website.

Photo credit: Venti Views on Unsplash
Published: 20 August, 2026

Financial Result

CBL International returns to profit as 1H sales volumes rise 10.9%

Gross profit rose 140.5% to USD 6.53 million from USD 2.71 million, while gross profit margin expanded from 1.02% in 1H2025 to 1.65% in 1H2026.

Published

2 days ago

August 19, 2026

Admin

CBL International Limited (CBL), the listing vehicle of the Banle Group (Banle), a marine fuel logistics company in the Asia-Pacific region, on Tuesday (18 August) announced its unaudited financial results for the first half of 2026 and declared a special cash dividend of USD 0.10 per share.

The company reported consolidated revenue of USD 395.59 million for the six months ended June 30, 2026, representing a 49.2% increase from USD 265.17 million in the same period of 2025. The increase was driven primarily by the surge in global oil prices arising from the escalation of Middle East geopolitical tensions and secondarily by the 10.9% growth in sales volume.

Gross profit rose 140.5% to USD 6.53 million from USD 2.71 million, while gross profit margin expanded from 1.02% in 1H2025 to 1.65% in 1H2026. This 63-basis-point improvement reflects CBL’s strengthened ability to secure reliable supply and meet elevated customer demand at competitive pricing amid tighter Middle East bunker availability and heightened market volatility. The multi-year investments in network coverage and supplier relationships enabled the Company to capture demand arising from vessel rerouting while protecting and expanding margins.

Total operating expenses increased by 2.2% year-on-year to USD 3.49 million from USD 3.42 million, demonstrating continued cost discipline. Selling and distribution expenses increased by (+9.6%) in line with higher volumes, while general and administrative expenses remained at the same level as the same period in 2025.

The company recorded operating income of USD 3.04 million compared with an operating loss of USD 701,000 in 1H2025, and net income of approximately USD 1.50 million compared with a net loss of USD 992,000 in the prior-year period.

CBL’s multi-year strategy of port expansion and supplier development continued to deliver tangible results. As of 30 June 2026, the company’s global service network had expanded to more than 70 ports, enabling it to serve key global trade routes with competitive pricing and reliable delivery.

Asia Pacific remained the primary revenue driver. Elevated bunker demand arising from vessels redirected away from the Middle East toward Far East and intra-Asia corridors was captured through the strengthened regional network. Sales concentration among the top five customers declined to below 60% (compared with 60.4% in 1H2025 and 66.7% in 1H2024), while revenue from the top 12 global container liner customers increased to 68.6% from 60.1%. Customers acquired within the past two years contributed 23.5% of total sales during the first half of 2026.

Despite significant geopolitical disruptions—including the escalation of Middle East conflicts involving Iran, threats to close the Strait of Hormuz in March 2026, ongoing Red Sea instability, and the impacts of U.S. tariff policies—CBL demonstrated strong resilience. CBL’s diversified supplier network enabled the Company to secure supplies under constrained conditions and successfully meet elevated customer demand in the Far East and other regions. The overall impact on CBL has so far been limited in negative terms and supported volume growth.

A key strategic development was the April 2026 acquisition of a 50.5% majority stake in Green Marine Energy Holdings Limited. Green Marine operates complementary businesses in sustainable feedstock distribution and licensed bunkering of conventional and biofuels in Malaysian waters. This investment enhances CBL’s upstream capabilities, supports integrated biofuel supply chain development, and strengthens its physical bunker capabilities in Malaysia.

Dr. Teck Lim Chia, Chairman and CEO of CBL International Limited, said: “Our first half results mark an important milestone. Our return to profitability was driven by the tangible payoff from multi-year investments in our global supplier network and operational capabilities. Despite significant geopolitical disruptions and market volatility, we grew sales volume by 10.9% and expanded our gross profit margin by 63 basis points.

“The acquisition of a majority stake in Green Marine further positions us upstream in the sustainable fuel value chain and strengthens our physical bunker capabilities in Malaysia. These achievements underscore the resilience of our business model and the effectiveness of our long-term strategy.

“As regulatory frameworks for maritime decarbonization continue to evolve and customer demand for lower-carbon fuels is expected to strengthen, CBL is well positioned with ISCC certifications, an expanding sustainable energy portfolio, and the Green Marine platform. We remain focused on disciplined cost management, further network expansion, and capturing opportunities across both conventional and sustainable marine fuels to deliver sustainable growth and long-term shareholder value, including through the declaration of a special cash dividend of USD 0.10 per share.”

Looking ahead, CBL expects to:

Further integrate Green Marine’s feedstock distribution and Malaysian bunkering capabilities, while scaling biofuel offerings and exploring LNG and methanol solutions to support customers’ decarbonization goals.
Maintain disciplined cost management, continue to increase operational efficiency and leverage expanded banking facilities and capital markets tools to support working capital, growth initiatives, and potential shareholder return programs.
Remain vigilant regarding geopolitical risks, oil price volatility, U.S. trade policy developments, and regulatory changes, while staying cautiously optimistic about the outlook for the second half of 2026 and beyond.