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Biodiesel

Marine energy transition

What is Biodiesel?

Biodiesel is a generic term used for bio-based fuels with properties similar to diesel. The term is often used to describe FAME but is not exclusive to describing fuels containing FAME.

Biodiesel (FAME) is derived from renewable sources, such as plant oils, animal fats, recycled cooking oil and waste biomass, and when burned in an internal combustion engine, it releases carbon dioxide and water vapour. Biodiesel, as a pure fuel (B100) rather than a blend, can be a net zero-emission fuel if carbon released during combustion is offset by the carbon absorbed during the growth of the resources used in the production. Feedstocks must be sustainably sourced for biodiesel to be a sustainable fuel option.

Adoption of biodiesel is currently limited by sustainable resource and fuel availability globally

Biodiesel challenge

Biodiesel is considered a "drop in" fuel because existing technology (infrastructure and engines) for diesel can be used, however the impacts of varying fuel properties from different feedstock types are uncertain.

Biodiesel challenge

Exploring the advantages of biodiesel as a marine fuel

Low risk of environmental contamination: in the event of a spill, biodiesel poses a lower risk of environmental contamination than other fuels as it is biodegradable.
Compatibility: Biodiesel is considered a “drop in” fuel, functionally equivalent to petroleum, as it requires little or no modification to existing diesel technology.
Safe operation: Safety is not considered a new challenge for the industry, as existing safety mitigations for diesel are well established and can be applied to biodiesel.

Risks and disadvantages

Feedstock sustainability challenges: large-scale production of (1st and 2nd generation) biodiesel may require significant amounts of land and water resources, creating sustainability implications.
Feedstock demand: there is competing demand for feedstock from other sectors, and conflict over the best use of feedstock e.g., food (1st generation biodiesel).
Uncertainties: Its lower energy value, sensitivity to oxidation stability and affinity to microbial activity and material compatibility need to be understood and addressed when stored and in use on board ship.

Differences between biodiesel fuels

Different generations of biofuels have been defined, with increasing potential for generating high quantities of sustainable feedstock.

1st generation biodiesel is produced from edible vegetable oils, animal fats or oils and fats that are primarily used for food
2nd generation biodiesel is produced from lignocellulosic biomass and other waste streams such as agricultural residues and used cooking oils
3rd generation biodiesels are produced from non-food feedstocks and are characterised by high yield and rapid growth rates. Feedstocks include micro- and macro-algae.

FAME feedstock may be any generation of feedstock.

Exploring Biodiesel for your fleet?

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At at glance

Resources	Production	Bunkering and ports	Handling and storage onboard	Propulsion
Plant oils, animal fats, recycled cooking oil, waste biomass	Transesterification	Same technology & infrastructure as for traditional diesel	Same technology & infrastructure as for traditional diesel	Diesel engines

The readiness level view shows Technology on a scale from 1 (lowest) to 9 (highest), and both Investment and Community on a scale from 1 (lowest) to 6 (highest). In the supply chain view all figures are displayed on a percentage basis to allow like for like comparison, against a scale in 10% increments.

Biodiesel

E-ammonia data insights

Technology Readiness Levels (TRL)
Investment Readiness Levels (IRL)
Community Readiness Levels (IRL)

Technology	Rating	Description	Justification	Challenge
Resource	7	Low-scale pilot production demonstrated.	Supply chains of sustainable first, second and third generation biodiesel feedstocks have been demonstrated. Localised supply chains have been demonstrated at pilot project level, however scale up is required to meet shipping demand.	Sustainable resource supply chains need to be scaled globally to meet shipping needs. For third generation biodiesel, further optimisation of algae strains, water and fertiliser usage is also required.
Production	7	Low scale pilot production demonstrated.	Transesterification is a well-established process in certain regional hubs. The regionalisation of production is based on feedstock availability and shipping demand profiles.	Global scale-up of facilities is needed to meet shipping demand. For this scale up to happen, there needs to be certainty in feedstock supply globally.
Bunkering and ports	7	Low scale pilot production demonstrated.	Biodiesel bunkering has been proven in several trials, however longer-term storage stability over time and corrosive properties are currently uncertain. Storage capacity at ports globally is limited, limiting supply availability to specific bunker hubs.	Longer term trials of storage need to be conducted and the supply chain and infrastructure for distributing biodiesel needs to be scaled up to secure fuel availability in more ports.
Ship - Onboard handling and storage	7	Low scale pilot production demonstrated.	The onboard requirements are broadly the same for biodiesel as for traditional diesel, however characteristics, such as storage stability over time and material compatibility properties, may vary with feedstock type and are currently uncertain.	The storage uncertainties and material compatibility properties need to be investigated and monitored over a longer period of time.
Ship - Propulsion	7	Low scale pilot production demonstrated.	Combustion of biodiesel requires little modification to existing diesel engines, although the impacts of varying fuel properties depending on feedstock are currently uncertain.	The varying fuel propertiseneed to be investigated over a longer period of time.

Investment	Rating	Description	Justification	Challenge
Resource	2	Commercial trial, small scale	Long-term availability limits high commercial uptake of some feedstocks, meanwhile high cost projections of other feedstocks (e.g. 3rd generation - algae) have prevented large scale up of supply. Investment is limited due to competition for feedstock use in other sectors.	Cost-effective resources (such as used cooking oil) are in high demand from other sectors and long-term availability for shipping fuels would need to be proven in order to trigger investment in these supply chains. Micro- and macro- algae (3rd generation feedstock) cultivation and harvesting needs to be optimised and proven economically viable to scale up production.
Production	2	Commercial trial, small scale	Commercial trials have been conducted, however only at small scale (regionalised).	Stronger demand signals from shipping in more geographical locations are required.
Bunkering and ports	2	Commercial trial, small scale	Commercial trials have been completed, however low fuel availability is limiting investment in supply and port infrastructure. Shipping is competing with other sectors, such as automotive, to secure supply of biodiesel.	The supply chain and infrastructure for distributing biodiesel needs to be scaled up. For this scale up to happen, supply availability needs to be certain, and demand for biodiesel from shipping needs to shift from traditional diesel so conversion of existing diesel storage to biodiesel along with installing new tankage can be justified.
Ship	2	Commercial trial, small scale	Biodiesel is not yet widely available at ports, however it is considered a "drop in" fuel, so the technology investment is minimal and low risk.	Mid- and long-term fuel supply security globally is needed to stimulate investment in biodiesel for commercial shipping.

Community	Rating	Description	Justification	Challenge
Resource	3	Early stage solution formation to tackle stakeholder issues	Resources cultivation and harvesting have been proven, however regulatory framework for lifecycle assessment is insufficient. Community acceptance is subject to the assessment and mitigation of sustainability implications, such as deforestation and negative impacts from land use changes for feedstock harvesting. Widespread adoption of sustainability certification (which must be provided by fuel suppliers) creates evidence that will increase community acceptance.	Global accepted regulatory framework for lifecycle assessment requires further development and adoption at IMO level.
Production	3	Early stage solution formation to tackle stakeholder issues	Fuel quality standards exist. Lifecycle assessment and socio-economic impacts of the production process exist but are not necessary fully validated by stakeholders across the global supply chain. Widespread adoption of sustainability certification (which must be provided by fuel suppliers) creates evidence that will increase community acceptance.	Globally accepted regulatory framework for lifecycle sustainability assessment requires further development and adoption at IMO level.
Recharging and ports	3	Early stage solution formation to tackle stakeholder issues	Trials have shown successful implementation without major challenges, however there are limitations on storage facilities, in some instances due to planning permissions.	Fuel quality standards and lifecycle assessment needs to be further developed and accepted for biodiesel to become more widely used. Land-based planning permissions in some instances need to allow for an increase in new storage facilities for biodiesel.
Ship	3	Early stage solution formation to tackle stakeholder issues	Current environmental regulations focus on tank-to-wake rather than well-to-wake emissions, although MEPC 80 has brought in interim guidance in the use of biofuels, which incorporates current lifecycle analysis formulae which are defined by independent proof of sustainability certification. This will be rescinded immediately upon operationalisation of a well-to-wake GHG methodology through the IMO LCA guidelines. Additionally, emission profiles of biodiesels vary depending on feedstock type.	Lifecycle emission profiles need to be developed for biodiesels produced using varying feedstocks need to be developed as evidence for communities and compliance.

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