The maritime transportation industry’s ambition of net-zero carbon emissions has ballooned demand for biofuels. However, the capacity to produce these sustainable fuels is not keeping pace, with “unconstrained” biodiesel demand exceeding total supply.
According to Norway’s energy research and business intelligence company Rystad Energy, biofuels, which are compatible with existing ship engines and can, therefore, be adopted ‘with relative ease’, the capacity to provide biofuels like biodiesel and bio-liquefied natural gas (bio-LNG) and the overall outlook for bio-LNG are restricted in both allocation and production.