Lloyd’s Register Fuel Advisory Body Reports Significant Increase in Biofuel Usage to Meet GHG Reduction Targets

March 04, 2025

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(Ship Management) The latest analysis from Lloyd’s Register’s Fuel Oil Bunkering Analysis and Advisory Service (FOBAS) highlights a significant increase in biofuel usage, primarily driven by EU and IMO regulations, including the Mediterranean SOx (Sulphur Oxides) Emission Control Area (SECA) coming into effect on 1 May 2025. 

The FOBAS Fuel Quality Report H2 2024, which examines fuel quality trends from the second half of 2024, also identifies ongoing concerns with high total sediment levels, sulphur compliance, and flash point irregularities.

Biofuels continue their rise in the marine fuel mix, driven by regulatory incentives and industry decarbonisation commitments. The report notes the increasing use of Fatty Acid Methyl Ester (FAME) residual blends (RF grade), particularly in Singapore, Algeciras, and the ARA region. While many vessels have successfully adopted biofuels without reported issues, concerns remain regarding transparency in composition and the potential risk of unknown quality biofuel stocks entering the supply chain.

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Additionally, FuelEU Maritime regulations, the inclusion of shipping in the EU Emissions Trading System (ETS) and other regulatory pressures are expected to drive increased adoption of biofuels and alternative fuels such as methanol, hydrogen, and ammonia – creating new challenges in terms of availability, cost, regulatory compliance, and fuel quality.

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“As the regulatory landscapes evolve and alternative fuels gain traction, ship operators must remain proactive in assessing fuel quality to ensure compliance and maintain high operational efficiency.”

LR’s FOBAS service provides industry-leading expertise in fuel testing, advisory, and risk mitigation strategies, supporting ship operators in navigating the complexities of fuel quality and regulatory compliance, providing a bi-annual series of fuel quality reports. READ MORE

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Problems and potential of biofuels at sea: Lloyd’s Register’s CEO Richard Sadler examines the potential of biodiesel as a fuel for marine engines (Riviera)
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LR reports significant increase in biofuel usage to meet GHG reduction targets (Dry Cargo)

Excerpt from Lloyd's Register: Highlights of the Fuel Quality report on the second half of 2024 (H2 2024) include:

Fuel Quality Trends: The report highlights that although the second half of 2024 continued to see similar fuel quality issues as the first half, there was a notable increase in the use of biofuels. There were regional-specific issues, particularly with residual fuels, where off-spec sulphur results and high total sediment levels were common problems.
Biofuel Usage: A significant increase identified in the use of biofuels, especially in Very Low Sulphur Fuel Oil (VLSFO) and Fatty Acid Methyl Ester (FAME) blends. These blends are becoming more common due to their properties aligning with standard VLSFO. However, the report notes that the quality of FAME must be monitored closely to avoid potential issues as demand increases.
Regulatory Changes and Future Outlook: The report discusses upcoming regulatory changes, such as the introduction of the Mediterranean Sulphur Emission Control Area from May 2025, which will require ships operating in the Mediterranean Sea to use fuel with a sulphur content not exceeding 0.10% m/m. Additionally, it is anticipated that continued growth in the use of biofuels and other alternative fuels, which will present challenges in maintaining fuel quality and composition transparency. READ MORE

Excerpt from Riviera: The use of vegetable oils for engine fuels may seem insignificant today but such oils may become in the course of time as important as petroleum and the coal tar products of the present time.” - Rudolf Diesel, 1911

Biofuels are evidently not a new concept: the first diesel engines designed by Rudolf Diesel ran successfully on peanut oil and the Ford Model T engine ran on hemp-derived biofuel.

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Bio lubricants are particularly valuable in the marine industry from an environmental perspective. Higher viscosity, flash point and better technical properties (such as increased sealing and lower machine operating temperatures) are appearing as additional merits.

The properties of biofuels and the way they behave in the engine vary significantly, depending on the source of the fuel, which makes any standardisation in the industry today very difficult. Shipowners must be sure of the quality of biodiesel burnt in their engines.

Currently, the fuel standard for marine applications – ISO 8217 – relates solely to fossil fuels and has no provision for biofuels. There are, however, a number of available national standards for biodiesel in the automotive sector, such as the European EN 14214. The marine bunker supply market would need to work closely with regulators to develop appropriate international marine standards.

‘Fuel oil’ in the IMO’s latest Annex VI regulations, proposed for adoption in October, covers any fuel delivered to and intended for combustion on a ship. This leaves the door open to biofuels. Worldwide availability of biodiesel supply is limited, however, and such fuels are expected initially to benefit smaller craft operating in areas particularly sensitive to air and water pollution.

For merchant shipping, the way in which biodiesels are supplied to the vessel must also be considered. There are two options: either the biodiesel is delivered premixed to the required blend, or the biofuel and diesel are supplied separately and then mixed onboard.

Biodiesel blended prior to delivery to the ship is affected by shelf life. Fuel ageing and oxidation can lead to high acid number, high viscosity and the formation of gums and sediments. Fuel management will therefore become ever more complex.

Separate supplies of biofuel and diesel for onboard mixing enable the operator to dictate the exact blend of biofuel depending on the conditions, but that would require new technology installed onboard and extra complexity for the crew to handle.

Some operational problems can occur from using biodiesel, related to the Cold Filter Plugging Point (CFPP) at which the fuel starts to turn to gel. Considered to be the indication of low temperature operability, the CFPP is in a range between 0oC and 15oC for different types of biodiesels and can cause problems with filter clogging, which can only be overcome by carefully monitoring the fuel tank temperature.

Such a problem could well affect ships operating in cold climates, where additional tank heating coils might be required to prevent it happening. Careful choice of the biodiesel type can ensure the problem is avoided.

Another challenge in using biofuels is corrosion caused in the fuel injection and fuel treatment systems as biodiesels are hygroscopic and maintain 1,200-1,500 ppm water. It is essential therefore that the fuel is conditioned thoroughly prior to injection, and also important that the fuel acid number is monitored to ensure no rancid, acidic fuel is introduced to the injection system.

A typical fuel treatment system should incorporate separators to ensure water is removed, as well as heaters at various stages to ensure the fuel is at the correct temperature for introducing in the engine.

How are engine lubricants likely to be affected by the increased use of biodiesel?

The primary concerns for the crankcase lubricant are the impact of biodiesel on engine cleanliness and the potential consequences of fuel dilution. Furthermore, the droplet characteristics and lower volatility of biodiesel compared with conventional diesel fuel, together with spray pattern and wall impingement in modern engines, may assist non-combusted biodiesel to get past the piston rings, make contact with the cylinder liner and be scraped down into the oil sump.

Any unburnt biodiesel tends to remain in the sump and the level of contamination may progressively build up over time, resulting in reduced lubricant viscosity and higher risk of component wear. A serious concern is the possibility that the unburnt biodiesel entering the oil sump may be oxidised, thus promoting oil thickening and dictating more frequent oil changes.

Another issue to be considered is fuel injector fouling. Given the increased likelihood for biodiesel to produce deposits, the quality of the biodiesel is critical. The presence of fatty acid and water in the fuel can foster increased corrosion of the injector system; and the presence of glycerol and viscous glycerides can contribute to further injector coking.

It should also be remembered that, due to its chemical properties, biodiesel degrades, softens or seeps through some gaskets and seals following prolonged exposure. Such effects clearly become more significant when using higher percentage biofuel blends. MP

Source: Biofuels and their effect on the shipping industry, Richard Sadler, CEO, Lloyd’s Register (IMarEST Stanley Gray lecture) READ MORE