• Home
  • News
  • Liquid biofuels are expected to have an important role to play in shipping and aviation sectors - Gibson
  • 2022 November 9 12:53

    Liquid biofuels are expected to have an important role to play in shipping and aviation sectors - Gibson

    Liquid biofuels are expected to have an important role to play in meeting future fuel requirements as the energy transition progresses and petroleum demand begins to come under pressure.

    Increasingly, these required biofuels will be from second and third generation biofuels based on non-food crops, non- arable land, and waste products, whilst fourth generation biofuels will expand the possibilities even further through production optimization improving yields, reducing production emissions and improved chemical performance through genetic engineering, according to Gibson Shipbrokers weekly report.

    The EU Fit for 55 package of policies makes it clear that future biofuel supply must be at least from second generation blends not competing with food supply.  In terms of potential growth areas, the most promising sectors in terms of demand are likely to be the shipping and aviation sectors, given the specific fuel requirements of those sectors with respect to logistics and practicality. In contrast, road fuel demand most likely will be supplanted by electric vehicles (EVs).

    In its World Energy Outlook (WEO), the IEA is forecasting liquid biofuel demand to grow from 2.2 million boepd in 2021 to 3.4 million boepd in 2030 and 5.3 million boepd by 2050 under the IEA Stated Policies Scenario (STEPS), which reflects current policy frameworks. 

    For the shipping and aviation sectors, biofuel demand growth is likely to be much stronger, as clear technical synergies exist for adding biofuel blends to traditional marine and aviation fuels to improve their environmental profiles without making substantial modifications to ship and aircraft engines or their fuel systems.

    Numerous trials have been taken place and are ongoing to find the optimal blend of biofuels with preliminary evidence indicating Co2 reductions in the region of 5-25% depending on blend. However, current high biofuel prices and limited supply could limit the extent of their uptake beyond larger players.  "In terms of how much oil demand biofuels could displace, this is subject to multiple factors including regulations, pricing subsidies and feedstock production levels, given the challenges posed by climate change and elevated input costs such as chemicals and fertilizers", - stated in Gibson's report.  

    The biggest beneficiary in the shipping sector could be the chemical and specialized tanker fleet as well as Handies and MRs who are already key shippers of liquid biofuel and feedstocks such as ethanol, HVO and FAME and as such as likely to see the amount of these and new generation biofuel cargoes increase as more refinery complexes convert to biofuel plants which in turn should positively impact smaller tanker demand and earnings. However, the extent of this will depend on the decarbonization trajectory with respect to overall oil demand and the speed of biofuel uptake, Gibson's Shipbrokers conclude.

2023 February 8

06:19 HHLA's subsidiary prepares concept study for a hydrogen bunker station on the deep-sea island of Helgoland

2023 February 7

18:37 Gothenburg Port Authority CEO Elvir Dzanic to resign in August
18:07 TotalEnergies obtains two CO2 storage licenses in the Danish North Sea
18:01 Oil price cap does not apply to Russian petroleum product processed by being blended in a third country
17:43 ST Engineering acquires new site in Singapore for its commercial ship repair business
17:40 First section of Houston Ship Channel expansion complete
17:33 DNV to assess the viability of blending hydrogen into South Korea's gas transmission network
17:15 COSCO Shipping Heavy Industry (Guangdong) yard to retrofit the main engines aboard two LPG carriers from the fleet of Tianjin Southwest Maritime
16:47 Kalmar’s eco-efficient hybrid straddle carriers to enhance fleet productivity at DP World Antwerp Gateway
16:21 Emergency Arbitration claims initiated by Euronav fully dismissed
16:02 Onboard hydrogen fuel cell project wins EUR 15 mln funding
15:44 New Balearia innovative fast ferry will feature Wartsila propulsion solutions
15:14 Uniper and Greenko sign exclusivity for Green Ammonia offtake to EU from India’s first Green Ammonia Project in Kakinada
14:48 Italy’s Campostano Anchor updates its fleet with an eco-efficient Konecranes Gottwald Generation 6 Mobile Harbor Crane
14:24 Vopak and Port of Antwerp-Bruges to redevelop former Gunvor site
14:02 Jumbo Offshore completes the transportation and wet storage of a riser caisson for Technip FMC
13:42 Wilhelmsen Ship Management and Affinity Shipping team up to launch full EU emissions reporting and trading services
13:39 Monjasa and HOST PtX Esbjerg sign an agreement on logistics services and offtake of green ammonia for the maritime sector
13:12 Saudi yard IMI inks agreements worth $350m to enhance operations
12:31 Port Authority of Singapore receives award for engineering innovations for Tuas Port Phase 1 Reclamation Project
12:00 UK government invests £77 million in clean maritime technology
11:30 Hudong-Zhonghua secured 37 large size LNG carrier orders in 2022
11:04 World’s largest containership squeezes through Suez Canal
10:41 Cargotec names Casimir Lindholm as new President and CEO
10:39 Suez Canal Authority denies the published information on the contracting of a company to provide its services
10:24 Russian Railways’ freight volumes to the East exceeded those to the West for the first time
10:13 Over 2,000 foreign workers to be added to Korean shipyards this month - Pulse
09:59 NOVATEK and Deepak Fertilisers sign MoU on LNG and low-carbon ammonia
09:28 MRTS supports the 6th Hydraulic Engineering and Dredging Congress as its Sponsor

2023 February 6

20:51 Russian Railways CEO confirms plans on launching new traffic to Lavna port in December 2023
18:30 Portsmouth International Port to accept an offer from Scottish and Southern Energy Network to secure extra power supply
18:03 Freeport of Ventspils Ro-Ro cargo volumes up 4% to 2.35 million tonnes in 2022
17:28 The National Fund of Greece confirms eight investment schemes in the tender for the development of Volos Port
16:47 K Shipbuilding receives $175m order from Al Seer Marine for the construction of four tankers
16:24 Fuel oil shipments from Russia to India totalled at least 0.5 million tonnes in January 2023 - Reuters
16:14 RF Government expands programme to compensate expenses for transportation of goods to North-West ports
15:45 Earthquake damages Turkiye's energy infrastructure, major port
15:23 Astrakhan shipyard of USC to commence building dry bulk / container carriers of Project 00108 for North-South corridor in 2023
15:19 BSM managed Service Operation Vessel “Windea Leibniz” finished an extensive upgrade at Ulstein Shipyard in Norway
14:55 DP World container volumes up 1.4% to 79.0 million TEUs in 2022
14:35 IHC Dredging delivers Beagle 4 to Gebr. van der Lee
13:51 Rosmorport announces tender for dredging on Volga-Caspian Shipping Canal
12:49 INPEX Corporation completes ammonia bunker barge study - Ship & Bunker
12:37 Ba Ria-Vung Tau province ready to support foreign car carrier on fire
11:42 Equinor and SSE Renewables carry out early scoping work on potential 4th phase of Dogger Bank Wind Farm
11:39 OceanPal Inc. announces appointment of Robert Perri as CEO
11:24 Accelleron signs Turbo MarineCare agreement with Associated Maritime Company (Hong Kong)
11:23 Turkish shipyard to build two ferries for CMAL
10:08 NYK Line posts 9M and 2023 FY results
09:55 First serial production of hydrofoils to be established in Moscow Region
09:29 EU and G7 adopted further price caps for seaborne Russian petroleum products

2023 February 5

15:41 Stena Drilling sign a new contract with UK's Ithaca Energy for Stena Spey
13:19 New partnership aims to take Norwegian offshore wind to the next level
11:07 Hundreds evacuated after fire ignites on cruise ship in Sydney, Australia
09:38 Shell LNG bunker barge launched in Spain

2023 February 4

15:21 Milaha and Hareket sign a strategic alliance to provide integrated heavy lift and oversized transportation services
14:29 DOF awarded EPRD contract by Equinor
13:14 The Port of Sagunto doubles its natural gas traffic by 2022
11:03 GTT obtains funding from Bpifrance for the MerVent 2025 project, winner of the "Corimer 2022" call for expression of interest

2023 February 3

18:22 IAA PortNews’ summary of past week news