The use of marine biofuels is emerging as a feasible option for carbon reduction in the shipping industry. However, raw material supply constraints are considered a hindrance to scaling demand.
Market Status of Biofuels
According to data from Singapore's maritime and port authorities, bio-bunker sales at the world's largest refueling hub fell to about 39,000 tons in July, accounting for less than 1% of total gasoline sales that month. In the same month last year, this figure was 135,000 tons. In the first seven months of 2026, total bio-bunker sales reached 457,000 tons, down from 907,900 tons in the same period last year.
Price Volatility and Its Impacts
Platts, part of S&P Global Energy, has assessed the prices of low-sulfur B24 bio-bunker in Singapore at $232 per ton, down $2 from last week. Additionally, the price of low-sulfur B30 bio-bunker reached $267 per ton, indicating a $3 decrease.
In the high-sulfur fuel market, the price of B24 bio-bunker is assessed at $244 per ton and B30 bio-bunker at $293 per ton, showing decreases of $6 and $9, respectively.
New Developments and Trials in the Shipping Industry
NYK Line has increased its biodiesel consumption by over 40 to 50 times compared to 2023 following trials. This company achieved these results after completing a six-month B24 trial under the LOTUS project with the Global Maritime Carbon Reduction Center. According to Rigo Nakajima, head of the carbon reduction promotion team at NYK, this trial demonstrated no issues with the long-term use of B24 under tested conditions.
However, the increased use of biofuels impacts the supply and aggregation of sustainable raw materials. Chris Chatterton, marine director at the Global Green Fuels Center, believes that while B24 and B30 are certainly scalable, this capability is not unlimited.
Raw Material Supply Challenges and Their Impact on Financing
Issues related to raw material aggregation have become a challenge for financing new biofuel projects. Kattrik Satiwajiswaran, executive director of energy, renewables, and infrastructure at DBS Bank, stated that many developers cannot demonstrate sustainable raw material supply. Therefore, raw material supply becomes a key factor in determining whether projects can secure financing and reach commercial scale.
Short-term forecasts for biofuels are being made while longer timelines are expected for the commercialization of some other low-carbon marine fuels. Juwita Setiawan, business director at Sing Fuels, predicts that biofuels and LNG will lead in the short term, while methanol will be significant in the medium term, and synthetic fuels may gain more importance in line with emission reduction goals by 2040 and beyond.
S&P Global Energy forecasts that the share of traditional fuels will decrease from 85% in 2030 to 26% by 2060, while biofuels will be used to help fleets comply with EEXI regulations.
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