Biofuels in decarbonization for maritime industry with FincoEnergies

This Q&A session explores the role of biofuels in decarbonizing maritime transport, featuring Johannes Schurmann, Commercial Director Marine at FincoEnergies. FincoEnergies supplies biofuels - primarily FAME biodiesel - to the marine sector. The company supports shipowners in adopting biofuels with end-to-end services, from technical assessment to regulatory documentation. With EU regulations like FuelEU Maritime, EU ETS, and CII accelerating decarbonization, biofuels are a viable short-term solution, especially for existing vessels. Johannes shares insights into market developments, pricing trends, regulatory impacts, and operational considerations, focusing on the practicalities of switching to biofuels. Finco’s approach goes beyond fuel supply - it includes support for planning, reporting, compliance, and on-board use. Key insights 1) FAME biodiesel is the most scalable and widely adopted biofuel in shipping today, largely because land-based fuel standards already require blends of 7–10% biodiesel in road transport. This widespread mandate ensures a well-established global supply chain, making FAME readily available for marine applications. 2) Cold Flow Properties (CFPP) are a key technical consideration when it comes to biofuels, especially for smaller vessels without heated tanks, as biofuels tend to ‘copy’ cold flow properties from the feedstock. Newbuild ships are advised to install heating coils in their tanks and piping to accomodate biofuels with poor cold flow properties. 3) Biofuels offer financial and regulatory advantages under FuelEU Maritime and EU ETS due to their low or zero carbon emission factors. Surplus biofuel use can be monetized through pooling (mandatory market) and Scope 3 credits (voluntary market) - though rules for the latter are still evolving. Abatement costs for bio-diesel are in the order of $300 per mT CO2-eq in Rotterdam and Singapore excluding FuelEU pooling benefits.  4) The Netherlands (Rotterdam) leads Europe in marine biofuel adoption due to its HBE (Renewable Fuel Units) incentive system. Singapore has caught up rapidly in market share, aided by changes in blending regulations. 5) Operational concerns, including potential filter or fuel clogging or marine growth are minimal if the fuel is handled properly. Biofuels based on residuals require more housekeeping, which is why FincoEnergies provides full guidance and documentation to mitigate any risks and emissions reporting. The only operational constraint for existing engines is the lower volumetric energy density for most biofuels, which can lead to issues in case a (very) high constant engine load is required. Most engine manufacturers allow for a B30 blend (30% biofuels) without any concerns.  Learn more here: https://www.sustainable-ships.org/sto...