Biofuels end-to-end supply chain pilots

Biofuels can be used to reduce GHG emissions today as they can replace conventional marine fuels with minimal changes to the existing distribution infrastructure, shipboard technologies, and operational norms of ships.

Furthermore, blending biofuels with conventional fossil fuels can keep costs manageable while allowing shipowners to meet interim targets. 

The use of biofuels can improve Carbon Intensity Indicator (CII) ratings for individual vessels, and can reduce emissions on a fleet basis under the EU Emissions Trading System (ETS).

The case for the pilot

Currently, there is no industry-wide assurance framework that addresses concerns on the quantity, quality, GHG emissions abatement and traceability of biofuels, nor one that safeguards their premium and value from counterfeits. 

To address this gap, GCMD aims to establish an assurance framework that ensures supply chain transparency of drop-in biofuels, which can be extended to the deployment of other future drop-in fuels, such as bio-LNG/ fossil-LNG, bio-methanol/ grey methanol and green ammonia/ grey ammonia, when they become available in meaningful quantities.

Scope of the pilot

Designed through the lens of shipowners and charterers, this pilot comprises five supply chain trials spread across three major ports – Singapore, Rotterdam and a port in the US gulf coast, and bunkering of eight vessels across container, tankers and gas carrier segments.

The pilots deploy existing biofuel blends, such as HVO and UCOME, blended with either VLSFO, HSFO or MGO in blends up to 30% biofuels (B30).*

The pilot will also deploy different tracing techniques, including the use of physical tracers, carbon dating, chemical fingerprinting and a lock-and-seal methodology to track sustainable biofuels from their production facilities to their consumption onboard vessels. 

The data collected from these trials form the basis of an assurance framework for drop-in green fuels, which aims to provide emissions abatement assurance to shipowners and charterers who are paying a premium to deploy green fuels over fossil fuels. 

*

HVO: Hydrotreated Vegetable Oil

HSFO: High-Sulphur Fuel Oil

MGO: Marine Gas Oil

UCOME: Used Cooking Oil Methyl Ester

VLSFO: Very Low Sulphur Fuel Oil