Feedstock shortage constrains growth of marine biofuels

Marine biofuels could become one of the most readily deployable near-term options for reducing shipping emissions, but further growth is being constrained by limited availability of sustainable feedstocks, market participants said at the APPEC 2026 conference in Singapore.

One of the main advantages of biofuels is that they can be blended with conventional marine fuels and used in existing engines without major modifications. They can also rely on much of the existing storage and supply infrastructure, making adoption easier than for several other alternative fuels.

At the same time, biobunker sales in Singapore fell to 457 thsd tons in January–July 2026 from 907.9 thsd tons a year earlier. In July alone, sales totaled around 39 thsd tons compared with 135 thsd tons in July 2025, accounting for less than 1% of total bunker fuel sales in the world’s largest bunkering hub.

Some shipowners are nevertheless continuing to expand biofuel use. Japan’s NYK Line increased biodiesel consumption by 40–50 times compared with 2023 levels after trials of the B24 blend and is now conducting longer-term tests of B100. Market participants note, however, that further scaling of B24 and B30 will be limited by feedstock availability.

A shortage of guaranteed sustainable feedstock volumes is already becoming a factor that complicates financing for new biofuel projects. According to APPEC participants, biofuels and LNG are expected to remain among the main near-term alternatives to conventional marine fuel, while further market growth will depend on expanding and diversifying the feedstock base.

Tags: marine biofuels