NYK teams up with GCMD to address concerns of long-term biofuels use

Japanese shipping company NYK Line has joined forces with the Global Centre for Maritime Decarbonisation (GCMD) to launch Project LOTUS, which will focus on exploring the long-term impact of continuous use of biofuels on vessel operation.

This six-month project will trial the continuous use of a biofuels blend comprising of 24% Fatty Acid Methyl Esters (FAME) and very low sulphur fuel oil (VLSFO) onboard a short-sea vehicle carrier that will call at multiple ports. The use of a vessel plying short-sea routes will allow regular access to fuels stored onboard for sampling and testing during frequent port calls.

FAME, a biofuel derived from second-generation feedstocks, offers a promising solution for reducing GHG emissions in shipping, yet concerns persist regarding its potential impact on vessel operations due to susceptibility to degradation and microbial growth, posing risks to engine systems and fuel delivery.

As a preventative measure, engine Original Equipment Manufacturers (OEMs) and classification societies have recommended increasing the frequency of maintenance when using biofuels and their blends compared to using conventional marine fuels.

Despite a promising surge in biofuel bunkering volumes at key hubs, like Singapore and Rotterdam, with sales rising from negligible levels in 2020 to 1 million MT in 2023, their use still only represents 1.7% of total bunker sales at these hubs. With stricter regulations in force, the use of biofuels in shipping is likely to rise significantly in the coming years.

Trials of biofuels onboard vessels over the past decade have focused on combustion characteristics and emissions reduction, but data on long-term effects on engine performance and fuel systems are lacking. Project LOTUS seeks to fill this gap by establishing industry guidelines for monitoring engine performance and evaluating the total cost of ownership of biofuels, including additional maintenance costs. It will also identify and recommend mitigation strategies for challenges such as corrosion and valve failures associated with continuous biofuel use.

The quantitative findings from Project LOTUS can complement real-world data for the upcoming revision of ISO 8217:2024, which specifies standards for a broader range of FAME-based blends up to B100, and will be valuable for shipowners and operators aiming to ensure compliance with regulations such as the Carbon Intensity Indicator (CII) and FuelEU Maritime Standards.

“Project LOTUS will provide valuable insights into how extended biofuels use affect 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 towards decarbonising the maritime industry,” Professor Lynn Loo, CEO of GCMD, said.

Nobuhiro Kashima, Senior Managing Executive Office of NYK Line, believes that the knowledge gained through this project will help the company achieve its GHG reduction targets.

GCMD will spearhead Project LOTUS in collaboration with industry partners, including NYK Line, who will provide the vessel and oversee fuel procurement, VPS, responsible for fuel and lube oil analyses, and Gard, offering support as an insurance and risk assessment consultant.