GCMD and NYK Line to investigate effects of long-term, continuous use of biofuels on vessels

The Global Centre for Maritime Decarbonisation (GCMD) has partnered with NYK Line to launch the LOTUS (long-term impact of continuous use of biofuels on vessel operations) project.

This six-month project will trial the continuous use of a biofuels blend comprising 24% fatty acid methyl esters (FAME) and very low sulfur fuel oil (VLSFO) on board a short sea vehicle carrier that will call at multiple ports. The use of a vessel plying short sea routes will enable regular access to fuels stored on board for sampling and testing during frequent port calls.

FAME, a readily available biofuel derived from second-generation feedstocks such as used cooking oil and palm oil mill effluent, presents a fuel alternative for immediate GHG emissions reduction in the shipping industry. The team explained that although FAME’s compatibility with existing engines and bunkering infrastructure makes it an attractive ‘drop-in’ green fuel, concerns remain about the impact of its extended use on vessel operations.

Unlike conventional marine fuels, one of the challenges with FAME is reportedly that it can be more susceptible to chemical degradation and microbial growth, the by-products of which can corrode shipboard engine systems and/or clog fuel delivery systems.

As a preventative measure, engine OEMs and classification societies have recommended increasing the frequency of maintenance when using biofuels and their blends compared with using conventional marine fuels.

Despite a surge in biofuel bunkering volumes at key hubs like Singapore and Rotterdam, with sales rising from negligible levels in 2020 to one million MT in 2023, the use of biofuels only represents 1.7% of total bunker sales at these hubs. With stricter regulations in force, the partners project that the use of biofuels in shipping is likely to rise significantly in the coming years. They have found that a thorough investigation of the impact of FAME’s long-term use and an evaluation of the total cost of adoption is critical to fully understanding the opportunity FAME presents to the shipping sector.

Project LOTUS aims to establish industry guidelines for monitoring engine and equipment performance when using biofuels. This pilot will also evaluate the total cost of ownership of using biofuels, covering the cost of fuel and additional maintenance costs associated with its use. Additionally, it will identify potential challenges related to continuous use of biofuels, such as corrosion of engine systems and valve failures, and recommend mitigation strategies.

The quantitative findings from Project LOTUS are intended to offer an opportunity to contribute complementary real-world data to the upcoming revision of ISO 8217:2024, which includes the specification of standards for a wider range of FAME-based blends up to B100. They are also expected to be crucial for shipowners and operators who are considering biofuel use to meet vessel compliance with regulations like the Carbon Intensity Indicator (CII) and the FuelEU Maritime Standards.

Scope of the pilot and industry participation
Project LOTUS will be conducted with the appointed vessel under commercial operations to capture real-world challenges and ensure that the learnings are accessible to the industry. The pilot will involve comprehensive tracking of fuel quality and lubricant efficacy, as well as monitoring engine and fuel delivery system performance over the course of the trial.

Leveraging its experience from three supply chain trials with four vessels for its drop-in green fuel assurance framework, GCMD will lead Project LOTUS in collaboration with industry partners. NYK Line, a co-sponsor, will contribute to the vessel and manage fuel procurement. VPS will handle fuel and lube oil analyses and Gard will support GCMD as an insurance and risk assessment consultant on the project.

Professor Lynn Loo, CEO of GCMD, said, “Project LOTUS will provide valuable insights into how extended biofuel use affects engine performance and shipboard operations. This knowledge will empower stakeholders across the ecosystem – from shipowners and charterers to biofuels producers and regulators – to make more informed business and policy decisions. Ultimately, this pilot will lead to greater confidence for biofuels use at scale, accelerating progress toward decarbonizing the maritime industry.”

Nobuhiro Kashima, senior managing executive office of NYK Line, said, “We released the NYK Group Decarbonization Story in November 2023, declaring a new target to reduce the NYK Group’s GHG emissions by 45% from the fiscal 2021 level by fiscal 2030. To achieve this goal, from fiscal 2024 we started conducting full-scale trials of the long-term use of biofuels in navigating existing heavy oil-powered vessels. We are delighted to launch Project LOTUS together with reliable partners like GCMD. We believe the knowledge gained through this project will help us achieve our GHG reduction targets and eventually contribute to the decarbonization of the maritime industry.”

In related news, Commodities company Trafigura has signed a contract for four medium gas carriers (MGC) that will be capable of using low-carbon ammonia as a propulsion fuel when delivered. The vessels will be built at HD Hyundai Mipo Dockyard in Ulsan, South Korea. Click here to read the full story.