4 Things You Need to Know About Lower Carbon Fuel Solutions for the Marine Industry

The marine industry is reaching new waters: the transition from sulfur fuel to fuel with less emissions. Jon Scharingson, Executive Director of Strategic Initiatives at Chevron Renewable Energy Group, provides some insights discussing this change. 

Why should the marine industry consider using biofuels?

“The marine industry is experiencing a fuel evolution by transitioning to lower-carbon fuels from traditional marine fuels. One of the catalysts for this development was International Maritime Organization (IMO) 2020, which reduced the limit for sulfur content in a lot of those traditional marine fuels. Recently the industry has been endeavoring to reduce CO₂ GHG emissions and some of the global marine shipping companies that have established significant CO₂ reduction targets are leading the movement. Biodiesel and renewable diesel can help companies work toward meeting their lifecycle carbon emission targets. Biofuels can offer 100% Scope 1 and 2 emissions reduction with no modifications to the vessels. Those factors are big reasons for the excitement about biofuels."

Are there any government incentives or blender’s credits such as those that exist for the trucking transportation industry?

“In the United States, Canada, and Europe, there might be incentives for biodiesel and renewable diesel depending upon an array of factors, but they are typically much more limited than they are for the trucking industry. For example, the US RFS and the California LCFS do not allow RINs nor LCFS credits for renewable fuel used in ocean-going vessels. Chevron Renewable Energy Group’s compliance experts are at the ready to answer any questions you may have."

What are the biggest challenges with biofuel use in vessels and how can Chevron Renewable Energy Group help overcome those?

“Economics is clearly one of the challenges and biodiesel hasn’t historically been used much in marine fuels. Getting the biodiesel staged and in tanks that can service the industry is also a challenge. But on the flip side, one of the big advantages of FAME (fatty acid methyl ester, another term for biodiesel) is that can be blended easily with both marine gas oil, as well as the sulfur fuel oils which are the primary liquid fuels being used in the industry today. Chevron Renewable Energy Group has a great technical team that works with customers to determine what lower-carbon fuel solutions are best to suit their needs."

What results has Chevron Renewable Energy Group seen in trials with biofuels?

“Around the globe, we have been supplying marine customers that are using MGO (marine gas oil), LSFO (low sulfur fuel oil),  and HSFO (high sulfur fuel oil) at up to B30 (30% biodiesel) blends. Our customers have seen positive results in performance and emission reduction. Plus, we're seeing ever increasing demand for biodiesel blends in the marine fuel space. Chevron Renewable Energy Group has an emissions calculator that can be used to estimate your Scope 1 Emissions by replacing petroleum diesel with bio-based diesel."

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