How Biofuels Like Ethanol Are Reshaping the Maritime Industry ？
From：
Zhonglin International Group Date：11-28 5449 Belong to：Industry Related
1. Current Market Share of Seaborne Biofuels: Breakthrough in the Early Acceleration Phase
The application of biofuels in the global shipping industry remains in the early stages of "low base, high growth," but the trend toward scaling up is clearly evident. According to data released by DNV (Det Norske Veritas) in 2025, biofuels accounted for only 0.3% of the total marine fuel consumption in 2023, but this figure has already doubled compared to 2021. From a regional market perspective, Singapore and Rotterdam, two major international hub ports, serve as core supply centers, accounting for over 50% of global biofuel bunkering in 2023. Between 2021 and 2024, sales surged from 300,000 tons to 1.6 million tons, with a compound annual growth rate exceeding 60%.
The domestic market is also showing a breakthrough trend. In July 2025, Sinopec completed the bunkering of 5,700 tons of B24 low-sulfur biofuel for the Maersk vessel at Ningbo Port, setting a new record for single-ship biofuel bunkering under domestic bonded conditions. This marks China's capability to achieve large-scale supply at the thousand-ton level. The International Energy Agency predicts that in 2024, liquid biofuels accounted for over 4% of global transportation sector consumption. Although the maritime sector still represents a relatively small proportion, driven by policy mandates, this share is expected to rise to 2%-3% by 2025 and potentially exceed 10% by 2030. This rapid growth is underpinned by the shipping industry's urgent exploration of decarbonization pathways and the maturation of biofuel technology.
II. Key Biofuel Categories Focused on in Maritime Transport: Technical Characteristics and Application Scenario Diversification
Currently, the marine shipping sector primarily focuses on three major categories of biofuels, each with distinct technical characteristics, applicable scenarios, and emission reduction effects, collectively forming transitional solutions for shipping decarbonization.
1. Mainstream biodiesel: The "plug-and-play" advantages of FAME and HVO
Fatty acid methyl esters (FAME) and hydrogenated vegetable oil (HVO) are currently the most widely used marine biofuels, with their core competitiveness lying in their high compatibility with existing ship systems. DNV has clearly stated that these two types of fuels can be directly blended with conventional low-sulfur fuel oil without requiring major modifications to ship engines, as long as relevant blending ratio standards are followed to achieve emission reductions. For instance, the domestically promoted B24 fuel is a blend consisting of 24% biodiesel and 76% low-sulfur fuel oil, which not only meets IMO sulfur emission limits but can also be directly adapted to existing ship power systems, achieving a carbon emission reduction rate of approximately 20%.
The technological differences between the two create a complementary relationship: FAME, produced from waste oils and vegetable oils, has mature production processes but poor low-temperature fluidity, making it more suitable for temperate ports and short-distance routes; HVO, manufactured through hydrogenation technology, boasts stronger oxidative stability and lower sulfur content, while remaining functional in environments below -20°C, making it ideal for long-haul ocean vessels despite its relatively higher production costs. Increased investment by multinational energy companies is driving HVO capacity expansion, gradually positioning it as the preferred biofuel category for medium- to long-distance shipping.
2. Bio-alcohol fuels: Competition and synergy between ethanol and methanol
Bio-alcohol fuels, represented by ethanol and methanol, have become a focal point of recent attention due to their diverse feedstock sources and environmental benefits. Currently, methanol has a slightly larger application scale in the maritime sector than ethanol, but part of its production relies on fossil-based feedstocks (gray methanol), limiting its full life-cycle emission reduction effects. In contrast, ethanol is derived from biomass (such as corn, sugarcane, and waste cellulose), theoretically enabling a closed carbon cycle with a life-cycle greenhouse gas reduction rate of 60%-80%. Additionally, ethanol exhibits lower toxicity and superior safety compared to methanol.
According to data from the Global Ethanol Association (GEA) for 2025, the global annual production capacity of fuel-grade ethanol has reached 95 million tons, with the United States, Brazil, and Europe forming three major production hubs. The supply capacity is sufficient to meet short-term demand in the maritime sector. In terms of technical adaptability, ethanol can be directly applied to existing methanol dual-fuel engines by simply replacing ethanol-optimized injectors and updating control software, without the need to restructure the power system. Additionally, it can utilize existing port refueling facilities and safety protocols, resulting in significantly lower deployment costs compared to emerging alternatives such as hydrogen and ammonia fuels.
3. Advanced biofuels: a potential category for the future
In addition to the mainstream categories mentioned above, advanced technology routes such as algae fuel and cellulose biofuel are currently in the research and pilot stage. This type of fuel is based on non grain raw materials such as seaweed, agricultural waste, and energy grass, which not only avoids the controversy of "competing with grain for land", but also further improves emission reduction efficiency. The lifecycle emission reduction rate of some categories can exceed 90%. However, due to the complexity and cost of production processes, large-scale applications have not yet been achieved. It is expected that after 2030, it will gradually enter the stage of commercial promotion and become an important supplement to the biofuel system.
III. Layout of Domestic Port Biofuel Refueling Points: Hub Leadership and Network Expansion
The improvement of port refueling facilities is a key support for the large-scale application of biofuels. China is building a supply network covering major shipping routes with coastal hub ports as the core. At present, three core refueling areas have been formed:
Yangtze River Delta region: With Ningbo Port and Zhoushan Port as the core, relying on the supply chain advantages of energy enterprises such as Sinopec and Sinochem, we will build the most mature biofuel refueling base in China. Ningbo Port has not only completed the 5700 ton B24 fuel refueling, but also established a standardized process for the entire chain from resource allocation to on-site operations. It can complete thousands of tons of refueling in 19 hours and has the ability to provide regular supply. As an international maritime service base, Zhoushan Port has incorporated biofuel refueling into the bonded oil supply system and provided services to ships worldwide.
Pearl River Delta region: Shenzhen Port and Guangzhou Port are accelerating the layout of biofuel refueling facilities, relying on the petrochemical industry foundation in southern China, and focusing on pilot projects for HVO and ethanol fuel refueling. Shenzhen Port has reached cooperation agreements with shipping giants such as Maersk and Dafei to launch customized refueling services for ships on near ocean routes. In 2024, the amount of biofuel refueling will increase by over 150% year-on-year.
Bohai Rim region: Qingdao Port and Tianjin Port focus on the demand for northern air routes, with a focus on promoting the mixed refueling mode of low sulfur biofuels and LNG. Qingdao Port has built an automated refueling terminal that can flexibly switch between biofuels and traditional fuels to meet the power needs of different ships.
In addition, regional hub ports such as Xiamen Port and Dalian Port are also planning biofuel refueling facilities. It is expected that by 2026, China will form a "three core areas+multi-point radiation" refueling network, covering major domestic foreign trade routes and coastal domestic trade routes, laying the foundation for the popularization of biofuels.
IV. The core advantage of ethanol as a marine biofuel: multidimensional competitiveness highlighted
Among numerous biofuel categories, ethanol has become a key focus of the maritime industry due to its comprehensive advantages of supply stability, technological adaptability, and environmental benefits. Its core competitiveness is reflected in five aspects:
1. Adequate supply and controllable cost
The global ethanol production capacity has formed a large-scale layout, with the United States (corn ethanol), Brazil (sugarcane ethanol), and Europe (sugar beet ethanol) accounting for more than 90% of the world's production. The annual production capacity of 95 million tons is sufficient to support the incremental demand in the shipping industry. Compared with methanol and HVO, the production process of ethanol is more mature and can utilize low-cost raw materials such as agricultural waste. In the long run, with the large-scale application and technological progress, its cost is expected to further decrease, and the price difference with traditional low sulfur fuel oil will gradually narrow.
2. Leading in technological adaptability
Ethanol does not require modification of the ship's power system and can be directly adapted to existing methanol dual fuel engines with only minor calibration, including replacement of ethanol optimized fuel injectors and updating control software. The modification cost is less than 1% of the total ship cost. Meanwhile, the storage and transportation of ethanol can fully rely on existing port fuel terminals and logistics systems, without the need for new dedicated facilities, significantly reducing the transformation costs for ship owners and ports. This advantage makes it the easiest decarbonization solution to implement in the short term.
3. Outstanding environmental benefits
The combustion characteristics of ethanol are clean, which can not only reduce particulate matter emissions by 20% -40%, but also lower nitrogen oxide (NO ₓ) and sulfur oxide (SO ₓ) emissions, fully meeting the sulfur emission limit (0.5% m/m) implemented by IMO in 2020. From the perspective of the entire lifecycle, biomass ethanol can theoretically achieve carbon neutrality through the cycle mechanism of "growth and absorption of CO ₂ - combustion and release of CO ₂". Its emission reduction effect is significantly better than that of fossil fuels and also higher than some fossil based methanol.
4. Better security performance
Compared to the high toxicity and corrosiveness of methanol, ethanol has a higher flash point (about 13 ℃), lower volatility, and no significant corrosiveness, resulting in lower safety risks during storage, transportation, and refueling. The International Maritime Organization (IMO) and the International Organization for Standardization (ISO) are promoting the development of standards for ethanol ship fuel, further clarifying their safety operating procedures and clearing obstacles for large-scale applications.
V. The positioning of biofuels in the future maritime energy landscape: transitional core and long-term supplement
Under the goal framework of "2050 net zero emissions" in the shipping industry, biofuels will play a dual role of "transitional core solution+long-term energy system supplement", and its development path can be divided into three stages:
1. Short term (2025-2030): The main force of large-scale substitution
At this stage, the mid-term emission reduction strategy of IMO (reducing carbon emissions by 40% from 2008 to 2030) and regional policies such as the EU ETS will form a strong driving force, and biofuels will become the preferred choice for ship owners to reduce emissions due to their technological adaptability advantages. It is expected that the global proportion of marine biofuels will exceed 10% by 2030, with FAME and HVO accounting for about 7% -8%, and ethanol accounting for 2% -3%, mainly used for fuel replacement in existing ships. In the domestic market, with the improvement of refueling networks, the proportion of biofuels is expected to reach around 8%, and the Yangtze River Delta and Pearl River Delta routes will achieve normalized supply.
2. Mid term (2030-2040): Collaborative development with new energy
With the gradual maturity of zero carbon fuel technologies such as ammonia fuel and hydrogen fuel, biofuels will form a complementary pattern with new energy. For existing ships that cannot quickly retrofit their power systems, biofuels remain the main decarbonization tool; New ships will increasingly adopt a dual fuel system of "biofuels+new energy" to achieve full lifecycle emissions reduction. At this stage, advanced biofuels (such as algae fuel) will be mass-produced on a large scale, and the application scenarios of ethanol will be expanded to ocean routes, with the proportion further increasing to 5% -7%. The overall proportion of biofuels is expected to reach 15% -20%.
3. Long term (after 2040): An Important Supplement to Zero Carbon Energy Systems
Under the 2050 net zero goal, zero carbon fuels such as ammonia and hydrogen will become the mainstream of maritime energy, but biofuels will still play a role in specific scenarios. For example, for scenarios such as short haul routes and small ships that are not suitable for deploying new energy systems, biofuels are still the optimal choice; At the same time, the combination of biofuels and carbon capture technology (BECCS) will achieve negative carbon emissions and help the shipping industry exceed its emission reduction targets. It is expected that by 2050, the proportion of biofuels in marine fuels will remain stable at 10% -15%, becoming an important supplement to the zero carbon energy system.
VI. The inevitable choice under green transformation
The attention of the shipping industry to biofuels such as ethanol is essentially a triple resonance of policy driven, technology adapted, and market demand. Against the backdrop of increasingly urgent global decarbonization pressure, biofuels, with their core advantages of "low threshold transformation, high environmental benefits, and wide application scenarios," have become a key bridge for the shipping industry to transition from fossil fuels to zero carbon energy. Ethanol, as a potential category, is expected to achieve large-scale application in the next five years due to its supply stability, technological compatibility, and safety advantages.
With the improvement of refueling facilities, the reduction of technological costs, and the soundness of policy systems, biofuels will no longer be an "alternative solution" for maritime energy, but a "core pillar" for building a green shipping system. For ship owners, energy companies, and port operators, laying out the biofuel supply chain in advance is not only a responsibility to respond to the global call for emissions reduction, but also a strategic choice to seize industry transformation opportunities and enhance core competitiveness. In this decarbonization race that concerns the future, biofuels are writing a new chapter in the energy revolution of the shipping industry.
The application of biofuels in the global shipping industry remains in the early stages of "low base, high growth," but the trend toward scaling up is clearly evident. According to data released by DNV (Det Norske Veritas) in 2025, biofuels accounted for only 0.3% of the total marine fuel consumption in 2023, but this figure has already doubled compared to 2021. From a regional market perspective, Singapore and Rotterdam, two major international hub ports, serve as core supply centers, accounting for over 50% of global biofuel bunkering in 2023. Between 2021 and 2024, sales surged from 300,000 tons to 1.6 million tons, with a compound annual growth rate exceeding 60%.
The domestic market is also showing a breakthrough trend. In July 2025, Sinopec completed the bunkering of 5,700 tons of B24 low-sulfur biofuel for the Maersk vessel at Ningbo Port, setting a new record for single-ship biofuel bunkering under domestic bonded conditions. This marks China's capability to achieve large-scale supply at the thousand-ton level. The International Energy Agency predicts that in 2024, liquid biofuels accounted for over 4% of global transportation sector consumption. Although the maritime sector still represents a relatively small proportion, driven by policy mandates, this share is expected to rise to 2%-3% by 2025 and potentially exceed 10% by 2030. This rapid growth is underpinned by the shipping industry's urgent exploration of decarbonization pathways and the maturation of biofuel technology.
II. Key Biofuel Categories Focused on in Maritime Transport: Technical Characteristics and Application Scenario Diversification
Currently, the marine shipping sector primarily focuses on three major categories of biofuels, each with distinct technical characteristics, applicable scenarios, and emission reduction effects, collectively forming transitional solutions for shipping decarbonization.
1. Mainstream biodiesel: The "plug-and-play" advantages of FAME and HVO
Fatty acid methyl esters (FAME) and hydrogenated vegetable oil (HVO) are currently the most widely used marine biofuels, with their core competitiveness lying in their high compatibility with existing ship systems. DNV has clearly stated that these two types of fuels can be directly blended with conventional low-sulfur fuel oil without requiring major modifications to ship engines, as long as relevant blending ratio standards are followed to achieve emission reductions. For instance, the domestically promoted B24 fuel is a blend consisting of 24% biodiesel and 76% low-sulfur fuel oil, which not only meets IMO sulfur emission limits but can also be directly adapted to existing ship power systems, achieving a carbon emission reduction rate of approximately 20%.
The technological differences between the two create a complementary relationship: FAME, produced from waste oils and vegetable oils, has mature production processes but poor low-temperature fluidity, making it more suitable for temperate ports and short-distance routes; HVO, manufactured through hydrogenation technology, boasts stronger oxidative stability and lower sulfur content, while remaining functional in environments below -20°C, making it ideal for long-haul ocean vessels despite its relatively higher production costs. Increased investment by multinational energy companies is driving HVO capacity expansion, gradually positioning it as the preferred biofuel category for medium- to long-distance shipping.
2. Bio-alcohol fuels: Competition and synergy between ethanol and methanol
Bio-alcohol fuels, represented by ethanol and methanol, have become a focal point of recent attention due to their diverse feedstock sources and environmental benefits. Currently, methanol has a slightly larger application scale in the maritime sector than ethanol, but part of its production relies on fossil-based feedstocks (gray methanol), limiting its full life-cycle emission reduction effects. In contrast, ethanol is derived from biomass (such as corn, sugarcane, and waste cellulose), theoretically enabling a closed carbon cycle with a life-cycle greenhouse gas reduction rate of 60%-80%. Additionally, ethanol exhibits lower toxicity and superior safety compared to methanol.
According to data from the Global Ethanol Association (GEA) for 2025, the global annual production capacity of fuel-grade ethanol has reached 95 million tons, with the United States, Brazil, and Europe forming three major production hubs. The supply capacity is sufficient to meet short-term demand in the maritime sector. In terms of technical adaptability, ethanol can be directly applied to existing methanol dual-fuel engines by simply replacing ethanol-optimized injectors and updating control software, without the need to restructure the power system. Additionally, it can utilize existing port refueling facilities and safety protocols, resulting in significantly lower deployment costs compared to emerging alternatives such as hydrogen and ammonia fuels.
3. Advanced biofuels: a potential category for the future
In addition to the mainstream categories mentioned above, advanced technology routes such as algae fuel and cellulose biofuel are currently in the research and pilot stage. This type of fuel is based on non grain raw materials such as seaweed, agricultural waste, and energy grass, which not only avoids the controversy of "competing with grain for land", but also further improves emission reduction efficiency. The lifecycle emission reduction rate of some categories can exceed 90%. However, due to the complexity and cost of production processes, large-scale applications have not yet been achieved. It is expected that after 2030, it will gradually enter the stage of commercial promotion and become an important supplement to the biofuel system.
III. Layout of Domestic Port Biofuel Refueling Points: Hub Leadership and Network Expansion
The improvement of port refueling facilities is a key support for the large-scale application of biofuels. China is building a supply network covering major shipping routes with coastal hub ports as the core. At present, three core refueling areas have been formed:
Yangtze River Delta region: With Ningbo Port and Zhoushan Port as the core, relying on the supply chain advantages of energy enterprises such as Sinopec and Sinochem, we will build the most mature biofuel refueling base in China. Ningbo Port has not only completed the 5700 ton B24 fuel refueling, but also established a standardized process for the entire chain from resource allocation to on-site operations. It can complete thousands of tons of refueling in 19 hours and has the ability to provide regular supply. As an international maritime service base, Zhoushan Port has incorporated biofuel refueling into the bonded oil supply system and provided services to ships worldwide.
Pearl River Delta region: Shenzhen Port and Guangzhou Port are accelerating the layout of biofuel refueling facilities, relying on the petrochemical industry foundation in southern China, and focusing on pilot projects for HVO and ethanol fuel refueling. Shenzhen Port has reached cooperation agreements with shipping giants such as Maersk and Dafei to launch customized refueling services for ships on near ocean routes. In 2024, the amount of biofuel refueling will increase by over 150% year-on-year.
Bohai Rim region: Qingdao Port and Tianjin Port focus on the demand for northern air routes, with a focus on promoting the mixed refueling mode of low sulfur biofuels and LNG. Qingdao Port has built an automated refueling terminal that can flexibly switch between biofuels and traditional fuels to meet the power needs of different ships.
In addition, regional hub ports such as Xiamen Port and Dalian Port are also planning biofuel refueling facilities. It is expected that by 2026, China will form a "three core areas+multi-point radiation" refueling network, covering major domestic foreign trade routes and coastal domestic trade routes, laying the foundation for the popularization of biofuels.
IV. The core advantage of ethanol as a marine biofuel: multidimensional competitiveness highlighted
Among numerous biofuel categories, ethanol has become a key focus of the maritime industry due to its comprehensive advantages of supply stability, technological adaptability, and environmental benefits. Its core competitiveness is reflected in five aspects:
1. Adequate supply and controllable cost
The global ethanol production capacity has formed a large-scale layout, with the United States (corn ethanol), Brazil (sugarcane ethanol), and Europe (sugar beet ethanol) accounting for more than 90% of the world's production. The annual production capacity of 95 million tons is sufficient to support the incremental demand in the shipping industry. Compared with methanol and HVO, the production process of ethanol is more mature and can utilize low-cost raw materials such as agricultural waste. In the long run, with the large-scale application and technological progress, its cost is expected to further decrease, and the price difference with traditional low sulfur fuel oil will gradually narrow.
2. Leading in technological adaptability
Ethanol does not require modification of the ship's power system and can be directly adapted to existing methanol dual fuel engines with only minor calibration, including replacement of ethanol optimized fuel injectors and updating control software. The modification cost is less than 1% of the total ship cost. Meanwhile, the storage and transportation of ethanol can fully rely on existing port fuel terminals and logistics systems, without the need for new dedicated facilities, significantly reducing the transformation costs for ship owners and ports. This advantage makes it the easiest decarbonization solution to implement in the short term.
3. Outstanding environmental benefits
The combustion characteristics of ethanol are clean, which can not only reduce particulate matter emissions by 20% -40%, but also lower nitrogen oxide (NO ₓ) and sulfur oxide (SO ₓ) emissions, fully meeting the sulfur emission limit (0.5% m/m) implemented by IMO in 2020. From the perspective of the entire lifecycle, biomass ethanol can theoretically achieve carbon neutrality through the cycle mechanism of "growth and absorption of CO ₂ - combustion and release of CO ₂". Its emission reduction effect is significantly better than that of fossil fuels and also higher than some fossil based methanol.
4. Better security performance
Compared to the high toxicity and corrosiveness of methanol, ethanol has a higher flash point (about 13 ℃), lower volatility, and no significant corrosiveness, resulting in lower safety risks during storage, transportation, and refueling. The International Maritime Organization (IMO) and the International Organization for Standardization (ISO) are promoting the development of standards for ethanol ship fuel, further clarifying their safety operating procedures and clearing obstacles for large-scale applications.
V. The positioning of biofuels in the future maritime energy landscape: transitional core and long-term supplement
Under the goal framework of "2050 net zero emissions" in the shipping industry, biofuels will play a dual role of "transitional core solution+long-term energy system supplement", and its development path can be divided into three stages:
1. Short term (2025-2030): The main force of large-scale substitution
At this stage, the mid-term emission reduction strategy of IMO (reducing carbon emissions by 40% from 2008 to 2030) and regional policies such as the EU ETS will form a strong driving force, and biofuels will become the preferred choice for ship owners to reduce emissions due to their technological adaptability advantages. It is expected that the global proportion of marine biofuels will exceed 10% by 2030, with FAME and HVO accounting for about 7% -8%, and ethanol accounting for 2% -3%, mainly used for fuel replacement in existing ships. In the domestic market, with the improvement of refueling networks, the proportion of biofuels is expected to reach around 8%, and the Yangtze River Delta and Pearl River Delta routes will achieve normalized supply.
2. Mid term (2030-2040): Collaborative development with new energy
With the gradual maturity of zero carbon fuel technologies such as ammonia fuel and hydrogen fuel, biofuels will form a complementary pattern with new energy. For existing ships that cannot quickly retrofit their power systems, biofuels remain the main decarbonization tool; New ships will increasingly adopt a dual fuel system of "biofuels+new energy" to achieve full lifecycle emissions reduction. At this stage, advanced biofuels (such as algae fuel) will be mass-produced on a large scale, and the application scenarios of ethanol will be expanded to ocean routes, with the proportion further increasing to 5% -7%. The overall proportion of biofuels is expected to reach 15% -20%.
3. Long term (after 2040): An Important Supplement to Zero Carbon Energy Systems
Under the 2050 net zero goal, zero carbon fuels such as ammonia and hydrogen will become the mainstream of maritime energy, but biofuels will still play a role in specific scenarios. For example, for scenarios such as short haul routes and small ships that are not suitable for deploying new energy systems, biofuels are still the optimal choice; At the same time, the combination of biofuels and carbon capture technology (BECCS) will achieve negative carbon emissions and help the shipping industry exceed its emission reduction targets. It is expected that by 2050, the proportion of biofuels in marine fuels will remain stable at 10% -15%, becoming an important supplement to the zero carbon energy system.
VI. The inevitable choice under green transformation
The attention of the shipping industry to biofuels such as ethanol is essentially a triple resonance of policy driven, technology adapted, and market demand. Against the backdrop of increasingly urgent global decarbonization pressure, biofuels, with their core advantages of "low threshold transformation, high environmental benefits, and wide application scenarios," have become a key bridge for the shipping industry to transition from fossil fuels to zero carbon energy. Ethanol, as a potential category, is expected to achieve large-scale application in the next five years due to its supply stability, technological compatibility, and safety advantages.
With the improvement of refueling facilities, the reduction of technological costs, and the soundness of policy systems, biofuels will no longer be an "alternative solution" for maritime energy, but a "core pillar" for building a green shipping system. For ship owners, energy companies, and port operators, laying out the biofuel supply chain in advance is not only a responsibility to respond to the global call for emissions reduction, but also a strategic choice to seize industry transformation opportunities and enhance core competitiveness. In this decarbonization race that concerns the future, biofuels are writing a new chapter in the energy revolution of the shipping industry.
