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XFuel: Second-generation biofuels will unlock new possibilities in shipping’s green new era

Advanced biofuels allow shipowners, bunker suppliers, and port authorities to freely blend biofuel and non-biofuel bunkers to cut their emissions, says Dr Nicholas Bell, CEO of XFuel.

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The following is an article written by Dr Nicholas Ball, CEO of second-generation biofuel and refinery provider XFuel on the role second-generation biofuels can play in accelerating shipping’s decarbonisation. The article was shared with Singapore bunkering publication Manifold Times:

Second-generation biofuels from sustainable waste feedstocks are urgently needed to accelerate shipping’s decarbonisation transition, and deliver a cost-effective and fast path to net-zero.

The shipping sector is increasingly recognising the importance of decarbonisation. However it still lacks a definitive pathway to reach it. Regulators, including the IMO and the EU, have set concrete emissions reduction targets – with even more ambitious targets expected in the coming years. At the same time, cargo owners are starting to put commercial pressure on shipowners and charterers to deliver low-carbon options today.

Yet, commercial shipping is widely recognised as one of the hardest sectors to decarbonise. According to a recent report by think tank Nordic West Office, entitled Maritime Transition Scenarios, on its current trajectory, the shipping industry will fail to meet the IMO targets of 50% CO2 reductions by 2050. It might meet Paris targets under the most optimistic of scenarios, but this isn’t guaranteed. 

This sentiment of “falling short of targets” appears consensual. In September, London-based energy consultants Argus Media warned that the upcoming Cop 27 was unlikely to speed up maritime emissions cuts. Equally, MAN Energy Solutions’ Chief Sales Officer Wayne Jones recently warned that the marine industry is moving too slowly in relation to decarbonisation, and encouraged regulatory bodies to adopt regulations that invite capital into the production of green fuels.

Indeed, if shipping is to reach zero carbon it will need new technology, which will require significant investment, particularly when it comes to fuels and scaling them up. The vast majority of mooted new fuels (such as hydrogen, ammonia or methanol) require new engines alongside an entire new global bunkering supply chain and infrastructure. 

Nicholas portrait

Flexible feedstocks and true sustainability 

A biofuel’s feedstock, or raw ingredient that is converted into fuel, dictates its commercial viability and its sustainability. Food crops have traditionally been used to create first-generation biofuels. While first gen biofuels have broadly helped to reduce transport GHG emissions over several decades, they possess clear limitations. 

Biofuels that use crops either require that food crops are replaced, or that more land is converted into farmland. This raises legitimate questions about their saleability. Increasing first-generation biofuel production to meet projected demand will not be possible without dramatically impacting food security or deforestation. 

This is where second-generation or advanced biofuels come in – low carbon fuels from abundant and sustainable waste feedstocks that can meet immediate demand with little or no need for adaptation, and without the risk of destabilising agricultural and forest systems.

So how do we scale advanced biofuels? A typical box ship will have the capacity to take on between 1.5 and 2 million gallons of bunkers. For a second-generation biofuel to be viable in the long term, a feedstock must therefore be available in large enough volumes in the right location to meet fuel demand (although there is also immense value for anything that can be used as a drop-in fuel and introduced gradually). 

Hydrotreated Vegetable Oil (HVO) – currently the most available second-generation biofuel on the market –  highlights this concern. It is created through expensive hydrocracking or hydrogenation processes with vegetable oil or animal fats, which are not available in high enough quantities to represent a turnkey solution on a global scale. 

But there are other existing options, with availability that can be scaled to meet the industry’s demand. This has been our focus at XFuel – to develop  second-generation technology that is able to use a wide range of biomass waste as feedstock. This means that we are able to source abundant and sustainable waste from the manufacturing, construction, and agricultural sectors to use as feedstock. This waste can be sourced in virtually any coastal area, and does not threaten food security or contribute to environmental degradation.

A complete replacement 

The majority of biofuels available today either cannot be used as a complete replacement for traditional bunkers, or are costly to produce. This represents a major barrier to widespread adoption and commercialisation, and makes it difficult for ports, bunker suppliers, and shipowners to create an effective supply infrastructure. 

Moreover, the compatibility issues associated with many current biofuels often mean that traditional infrastructure cannot be used. For example, the corrosive nature of some often means that storage and transfer infrastructure must be replaced or adapted, requiring significant long-term investment. 

Yet, it is possible to create a biofuel that can be used as a complete replacement in existing engines and infrastructure at a competitive price to traditional VLSFO or ULSFO marine fuels. XFuel’s low carbon sustainable fuels achieve this, using a highly efficient and non energy-intensive biorefinery method to produce ‘drop in’ products that meet the specifications of a traditional fossil fuel i.e. ISO 8217:2017 for shipping. 

This low pressure, low heat process reduces the marginal cost of producing fuels (OPEX), making us price competitive and allowing our projects to have low CAPEX  requirements that deliver profitability for small and large projects alike.  

Second-generation biofuels can help the shipping sector meet its decarbonisation objectives today, without waiting on new technologies or massive global infrastructure projects. High-quality advanced biofuels allow shipowners, bunker suppliers, and port authorities to take a flexible and practical approach to cutting their emissions, freely blending biofuel and non-biofuel bunkers. It is paramount that the sector starts advancing towards a sustainable second-generation future as soon as possible. 

Related: Argus Media: Cop 27 unlikely to speed up maritime emissions cuts

 

Photo credit: XFuel
Published: 22 September, 2022

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Yang Ming orders six LNG dual-fuel, ammonia-ready containerships from Hanwha Ocean

Each of the six new vessels will have a capacity of up to 13,650 TEU and feature LNG dual-fuel propulsion and Ammonia Fuel Ready specifications.

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Yang Ming orders six LNG dual-fuel, ammonia-ready containerships from Hanwha Ocean

Taiwanese shipping firm Yang Ming Marine Transport Corporation (Yang Ming) and South Korean shipbuilder Hanwha Ocean on Wednesday (2 September) signed a shipbuilding contract for six 13,000 TEU class LNG dual-fuel container vessels. 

The contract was signed by Dr. Chuck Tsai, Chairman of Yang Ming, and Mr. Charles Kim, CEO of Hanwha Ocean. The vessels are scheduled for delivery between 2028 and 2029. 

They will complement Yang Ming’s existing fleet of 10,000+ TEU vessels and serve as key vessels on East-West services, with deployment flexibility across trade lanes connecting Asia with the East and West Coasts of North America, South America, and the Mediterranean. 

Each of the six new vessels will have a capacity of up to 13,650 TEU and feature LNG dual-fuel propulsion and Ammonia Fuel Ready specifications.

“As Yang Ming transitions toward net-zero emissions, LNG provides a relatively mature and economically viable alternative fuel solution, capable of reducing greenhouse gas emissions by approximately 20%,” the company said. 

“At the same time, ammonia can serve as a carbon-free fuel by utilising converted LNG storage facilities, while offering relatively lower conversion costs and comparatively well-developed supply chains and infrastructure. The Ammonia Fuel Ready design will therefore provide Yang Ming with greater flexibility in responding to increasingly stringent international regulations on greenhouse gas emissions.”

In addition, the vessels will be equipped with Type B LNG fuel tanks with a design pressure of 1.0 bar to enhance the safety and efficiency of LNG operations, together with a range of energy-saving technologies, including Wind Shields, Rudder Bulbs, Pre-Swirl Stators, and Shore Power Systems. Smart ship technologies and cybersecurity protection features will also be incorporated to enhance operational efficiency, safety, and reliability while effectively reducing fuel consumption and greenhouse gas emissions.

Deliveries under Yang Ming’s next-generation fleet optimization plan commenced earlier this year. By 2030, a total of 24 new vessels are expected to enter service. 

This includes 18 LNG dual-fuel vessels—comprising five 15,500 TEU, seven 16,000 TEU, and the six 13,000 TEU vessels under this contract—alongside six 8,000 TEU methanol dual-fuel-ready ships. 

 

Photo credit: Yang Ming Marine Transport
Published: 4 September, 2026

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LR, China’s MARIC unveil tanker concept ready for three future bunker fuels

Both secured AiP for a new 114,000 DWT product and crude oil tanker designed to accommodate future conversion to LNG, methanol or ammonia.

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LR, China’s MARIC unveil tanker concept ready for three future bunker fuels

Lloyd’s Register (LR) and the Marine Design and Research Institute of China (MARIC) on Thursday (3 September) have secured Approval in Principle (AiP) for a new 114,000 DWT product and crude oil tanker designed to accommodate future conversion to LNG, methanol or ammonia.

Announced at SMM 2026, the concept addresses one of the biggest investment challenges facing shipping today: the need to develop vessels and capabilities that can support a range of alternative fuel options and pathways as technologies, infrastructure and regulations evolve.

While LNG is already a mature fuel pathway, methanol and ammonia remain at an earlier stage of development, with questions around global fuel availability, infrastructure development, economics and long-term adoption.

The 114,000 DWT tanker concept has been designed as a product and crude oil carrier that can accommodate future conversion to LNG, methanol or ammonia as technologies, regulations and fuel supply chains mature. By incorporating conversion readiness at the design stage, the concept aims to reduce future retrofit complexity and provide owners with greater confidence when planning long-term fleet investments.

The design concept was reviewed against LR’s July 2026 class rules and regulations, including requirements relating to ships using gases and other low-flashpoint fuels, alongside relevant IACS Common Structural Rules for oil tankers. Final classification and statutory approval remain subject to full compliance with all applicable rules and regulations.

Theo Kourmpelis, Global Business Director for Tankers, Lloyd’s Register, said: “Shipowners are being asked to make major investment decisions today despite continued uncertainty around which fuels will dominate in the decades ahead. Alternative fuel solutions each offer potential pathways to compliance, but fuel infrastructure, regulation and economics continue to evolve at different speeds around the world.

“Designs that preserve flexibility will be critical in helping owners manage risk while preparing for multiple future scenarios.”

Si Nan, Marine & Offshore Marketing Department Vice Director, MARIC, said: “As the industry explores different decarbonisation pathways, shipowners need vessel designs that can adapt alongside technological and regulatory developments. This concept was developed specifically to provide greater fuel flexibility and long-term resilience, allowing owners to respond to changing market requirements without being locked into a single fuel strategy.

“Receiving Approval in Principle from Lloyd’s Register is an important milestone that validates the design concept and supports its future development.”

 

Photo credit: Lloyd’s Register
Published: 4 September, 2026

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DNV: Alternative-fuelled vessel orders hit highest monthly level since October 2024

LNG-fuelled vessels accounted for the vast majority of August activity while the strong summer performance marked a significant acceleration in ordering activity after a relatively slow start to the year.

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DNV: Alternative-fuelled vessel orders hit highest monthly level since October 2024

Latest data from classification society DNV’s Alternative Fuels Insight (AFI) platform alternative-fuelled vessel ordering was strong in August, with 52 new vessels added to the platform.

This is the highest monthly total since October 2024 and follows another active month in July, when 47 vessels were added to the database.

LNG-fuelled vessels accounted for the vast majority of August activity, with 46 orders recorded. The container segment led the way with 30 orders, while the car carrier segment contributed a further 12 LNG-fuelled vessels. In addition, four ethanol-fuelled bulk carriers and two hydrogen-powered bulk carriers were added during the month, as well as one LNG bunker vessel.

The strong summer performance marked a significant acceleration in ordering activity after a relatively slow start to the year. In total, 242 alternative-fuelled vessel orders have been placed in the first eight months of 2026, representing a 27% increase compared with the same period in 2025.

LNG remains the dominant fuel choice, accounting for 63% of all alternative-fuelled vessel orders registered so far this year. Container vessels represent the largest share of these LNG orders (59%), followed by car carriers (30%).

Jason Stefanatos, Global Decarbonization Director at DNV Maritime, said: “The past two months have been particularly strong for alternative-fuelled vessel ordering, with August recording the highest monthly total we’ve seen since October 2024. This has helped lift year-to-date orders to a level well above the same period last year.

“LNG remains the leading fuel choice, driven largely by activity in the container and car carrier segments. These sectors have been among the earliest adopters of alternative fuels, supported by predictable liner operations and increasing demand from cargo owners to reduce emissions across supply chains. 

“For many owners, LNG offers a combination of emissions reductions, fuel availability and future flexibility while the longer-term fuel landscape continues to evolve. 

“At the same time, the latest figures include orders for ethanol- and hydrogen-fuelled vessels, highlighting that owners continue to explore a range of decarbonization pathways. Different segments are making different fuel choices, but the overall level of activity demonstrates continued investment in lower-emission shipping.”

Screenshot 2026 09 04 at 12.29.26 PM Screenshot 2026 09 04 at 12.29.36 PM

 

Photo credit: DNV
Published: 4 September, 2026

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