PRIO’s Advanced Biofuels Route – Supporting the Energy Transition and Shipping Decarbonisation

by Filipa Oliveira and Telmo Ferreira (PRIO/EurActiv) Maritime transport emits around 940 million tons of CO₂ annually and is responsible for about 2.5% of global greenhouse gas emissions. More than 80% of all goods are transported via international shipping lanes, and the shipping industry is expected to keep growing for decades to come. Global marine fuel consumption is estimated to be 330 million tons annually. This quantity exceeds that used in aviation and is more than twice the amount of diesel fuel used by medium and heavy-duty vehicles.

Telmo Ferreira is the coordinator of Emerging Businesses and Shipping, and Filipa Oliveira is the innovation project manager at PRIO.

Throughout the Portuguese coast, we can observe the daily traffic of more than 400 vessels coming to and from the most diverse routes and regions of the world.

Considering all the expertise that PRIO has acquired over the last decade in decarbonising the automotive sector, it was a natural step for us to extend our key activities towards maritime decarbonisation, aiming to be a frontrunner in this energy transition in the shipping sector.

In line with the climate targets set in the Paris Agreement, the European Union aims to make Europe the first climate-neutral continent by 2050. Therefore, the European Council and the European Commission established the European Green Deal (EGD) in December 2019, a vital EU strategy to fight climate change and achieve climate neutrality.

The European Green Deal presents a transformational opportunity like no other in history: it is a commitment to remake Europe’s economy to achieve climate neutrality by 2050.

In July 2021, the European Commission put forward the ‘fit for 55’ package of legislative proposals to ensure the success of the European Green Deal. The FuelEU Maritime regulation is one of these proposals, and, together with four other proposals, it seeks to steer the EU maritime sector towards decarbonisation.

On behalf of our planet and the next generations, we need solutions that allow us to reduce our carbon footprint and minimise the negative impact that shipping activities have on our atmosphere. PRIO is willing to take an active role within the shipping industry, providing solutions to make this energy transition a reality.

Born in 2006, PRIO distributes and commercialises liquid fuels and electric energy for mobility, having a tank terminal, a biodiesel plant and a gas filling unit located in the Port of Aveiro in Portugal. The company has about 250 fuel stations across Portugal, accounting for more than 2 million monthly customers and owns the most significant private network of EV charging points in the country.

Since 2013, PRIO has been increasing the mix of residual raw materials in its biodiesel production. PRIO started with the incorporation of used cooking oils (UCO), becoming the third biggest European producer of biodiesel from this feedstock. In recent years, PRIO has been investing in the diversification of residual feedstocks, such as forest, urban and industrial waste.

In 2021, and as a result of over 10 years of R&D, PRIO developed Eco Bunkers to provide the necessary support to our marine clients who continuously increase their demand for eco-friendly maritime fuel solutions. Eco Bunkers is a 15% blend of biodiesel from residual feedstocks with our high-quality marine gasoil.

Eco Bunkers allow maritime fleets to reduce GHG emissions by up to 18%, decreases fuel consumption up to 10% and do not require any additional investment such as engine modifications.

On the graph below, we can observe that by increasing our advanced biodiesel blend to 100% Biodiesel Solution, i.e. Zero Diesel, we will obtain a reduction of up to 86% of CO₂. Eco Bunkers (15% Biodiesel) will reduce CO₂ by 18%.

As mentioned, PRIO also owns a bulk liquid terminal with a storage capacity of 100.000 m³, sitting next to our biodiesel plant. Therefore, we control the full production process of Eco Bunkers, and we control the final specifications to fully comply with all standards for high-quality marine gasoil. The flexibility of this blending process allows us to scale production as demand increases and to adjust the percentage of biodiesel blend into our marine products.

Innovation is in PRIO’s DNA, and together with our partners, we are researching other types of waste, such as coffee ground oils, and are constantly looking for new technologies for producing liquid and gaseous biofuels. We are sure that advanced biofuels are the most suitable immediate solution for the shipping industry; however, as there is no silver bullet for shipping, there will be a combination of different fuel technologies to achieve the intended GHG intensity reduction results.

Consequently, it is in our interest to supply the sector with compliant sustainable fuels and prove our fuel compliance responsibility. In the name of full transparency, we believe that enforcement issues and compliance responsibility must be shared between shipowners and fuel suppliers.

FuelEU Maritime is crucial in promoting the uptake of clean fuels in shipping. However, as it stands now, the Commission’s proposal falls short of ambition.

A key barrier to achieving the EU targets is the significant competitiveness gap between fossil fuels and alternative sustainable fuels.

Current energy taxation rules were implemented decades ago, but are still in effect in spite of being outdated. A taxation scheme prioritising the environmental performance of fuels rather than the outdated volume-based approach will offer consumers more competitive, sustainable alternatives. Clean technologies must be promoted, while the obsolete exemptions/reduced rates that currently encourage the use of fossil fuels must be removed to ensure the maximum uptake of renewable liquid fuels in the marine sector.

For example, in the Netherlands, stimulated by policy, waste-based and advanced marine biofuels have been playing a crucial role in the fuel mix, already having a real impact, decreasing the CO₂eq by almost 1 million tons last year. Therefore, FuelEU targets should not constitute a minimum effort but should stimulate the industry to scale up further.

For the maritime sector, feedstock availability will not be a critical issue. For us, it will not threaten biodiesel solutions as the present and most suitable alternative for the maritime energy transition challenge. There is still room to increase used cooking oils collection capacity. Moreover, better technology will also allow us to explore and use progressively other advanced feedstocks in our production. READ MORE