From Biofuels to Hydrogen: The Maritime Industry’s Path to Cleaner Energy

The maritime industry stands at a pivotal moment in its journey toward decarbonization. As global regulations tighten and environmental expectations rise, the shift from traditional fossil fuels to cleaner, more sustainable alternatives is no longer optional; it is imperative. Alternative marine fuels such as biofuels, LNG, methanol, ammonia, and hydrogen are emerging as viable pathways to reduce greenhouse gas emissions and align with international climate targets.
These new energy sources not only promise environmental benefits but also drive innovation across fuel supply chains, infrastructure, and vessel technologies. Embracing this transition is crucial for securing a cleaner, future-ready maritime ecosystem.
In this issue, Robban Assafina discovers, with maritime experts, how alternative fuels play a major role these days, highlighting types and efficiencies with availability and sustainability.

Alternative Fuels
Some alternative fuels are most viable for decarbonization, by evaluating their efficiency and energy density versus conventional fuels. From ClassNK’s Mr. Yoichi Iga, Regional Manager of Middle East and South Asia, viewpoint, saying which alternative fuels are most viable for decarbonization is still difficult, especially to select a single 'most promising' fuel, as each option has its pros and cons. “Biofuels, LNG, and methanol are considered transitional, while ammonia and hydrogen are seen as zero-carbon long-term options.”

Charbel Khoueiry, Sustainability and Energy Efficiency Manager at Sallaum Lines, says that biofuels, LNG, and ULSFO are key transitional fuels in decarbonization strategy. Khoueiry adds, “Each offers distinct benefits compared to conventional Heavy Fuel Oil (HFO), which, despite its high energy density and cost-effectiveness, remains one of the most carbon-intensive marine fuels. Also, each fuel has trade-offs when compared to HFO, as biofuels are cleaner and more sustainable, and slightly less energy-dense. LNG is significantly lower in local pollutants, but there are infrastructure and methane slip issues. As for ULSFO, it improves air emissions, but it is not a decarbonization fuel.”

On another level, Head of New Fuels at Glander International Bunkering, Frederik Moser, sees that detecting the most viable alternative fuels for decarbonization depends on several factors. There are several solutions available now, and many more being considered. Ultimately, it all depends on the needs of the ship owner or charterer.

Frederik Moser

“For example, if we’re talking about a vessel running on traditional Marine Gasoil, like a typical containership, a drop-in biofuel blend such as B30 MGO can be a straightforward and effective way to cut emissions. These blends are usually made using either Hydrotreated Vegetable Oil (HVO) or Biodiesel (FAME). Each bio component has its own characteristics. But in the end, we always look at the numbers. We assess fuels by: lifecycle emissions, engine compatibility, storage and fuel handling need, and supply consistency and economics.”

Future Marine Fuel
In line with this, LNG — which until recently was considered a transitional fuel — has seen a significant uptick in project developments and utilization across various vessel segments. There is also growing momentum behind greener alternatives such as bio-LNG and e-LNG, which are being promoted as drop-in solutions. As Margabandhu Kumaraswamy, Technology and Innovation Manager for IMEA at Bureau Veritas, notes, these developments mark a notable shift in the industry’s approach to sustainable marine fuels.

“Ammonia will be a very interesting journey to track, especially in 2026, with the expected commencement of commercial operations involving gas combustion onboard vessels in service. The industry is eagerly awaiting this development. As for biofuels, their utilization has already seen an increase and is expected to continue rising in the coming years. This is largely due to the relative ease of implementation, as operational experience and technical know-how expand—both onboard and throughout the bunker supply chain.”

As for Chief Executive Officer of O Bunkering, Ali Amur Al-Shibani’s point of view, LNG, biofuels, and green methanol appear as the most promising and scalable alternative fuels for the near to medium term. Each offers a unique benefit when evaluating emissions reduction, fuel compatibility, and operational readiness.

LNG provides a prompt reduction of up to 25% in CO₂ emissions compared to traditional marine fuels, along with the advantage of a growing global infrastructure. Biofuels, particularly B24 to B100 blends, demonstrate strong compatibility with current engines, presenting an appealing choice for shipowners seeking lower-carbon alternatives that require minimal modifications. Al-Shibani adds, “Green methanol, along with e-methanol, offers a promising route for long-term decarbonization due to its clean combustion and convenient onboard storage. However, its current cost and energy density present practical challenges.”

Maritime Challenges
As the maritime industry is experiencing huge transformation, there will be main technical or operational challenges that could be faced when adopting or switching to alternative fuels.
Frederik Moser says that drop-in biofuels like Biodiesel and HVO have been vetted and studied by almost all engine manufacturers at this point. Once it confirms compatibility of quality and specifications, there should be no technical challenges. From an operational standpoint, the availability of biofuels—and more specifically the blend ratios a ship owner may need, such as B24 or B30—may not be available in all ports yet.
“This is especially true for ports that are not major hubs or have little demand for biofuels. It is not easy for physical suppliers to allocate storage tanks for special blends, especially in low quantities. When it comes to LNG-fueled vessels, they are generally newbuilds which have the required equipment already installed.”
From a different point of view, Kumaraswamy believes that this would vary depending on the type of fuel used, but a common and recommended approach is to exercise due diligence through a proper and comprehensive Management of Change (MoC) process. Despite this, several typical challenges often remain. One key issue is the maturity of the technology, particularly when implemented onboard vessels, which can limit reliability and operational confidence.

Kumaraswamy continues, “There is increased pressure to maintain compliance with the STCW requirements, especially in terms of manhours, which are critical for operational needs. Another challenge lies in addressing commercial claims, as gas is still largely considered a secondary fuel. Consequently, vessel safety and redundancy measures continue to rely on conventional liquid fuels, further complicating the transition to alternative fuel systems.”

Alternative Fuels Obstacles
As for Khoueiry, the key challenges in adopting alternative marine fuels include fuel compatibility with existing engine systems, as retrofitting vessels can be both costly and technically complex. Storage and safety also present significant concerns, particularly with cryogenic fuels like LNG or toxic options such as ammonia. “Additionally, energy density trade-offs may impact vessel design and reduce cargo capacity due to the need for larger storage volumes. Finally, supply chain readiness remains a hurdle, with limited availability of alternative fuels across major global ports, making consistent refueling a challenge.”

Whereas Mr. Iga says that switching to alternative fuels involves multiple challenges such as fuel storage and handling, crew safety and training, retrofitting requirements, and compliance with evolving international regulations.Al-Shibani sees that challenges include engine renovation, new fuel storage systems, limited bunkering infrastructure, and crew training for managing complex fuels such as hydrogen and ammonia.

“Ensuring safety is crucial, as ammonia poses toxicity risks, while hydrogen is flammable and challenging to detect. Furthermore, even with the introduction of carbon pricing by the IMO, the existing expense of green alternatives remains an obstacle to widespread adoption, as highlighted in Argus' evaluation of carbon credit values for 2028.”

International Regulations Influence
Of course, some of the current and upcoming international regulations (IMO, EU ETS, FuelEU Maritime, etc.) influence maritime alternative fuel strategy. Kumaraswamy believes that these regulations are key and that for operators to understand the fleet profile and the impact of these measures could be substantial.

Kumaraswamy adds that owners could choose from all the available options and timelines, with the added inputs on maturity and choice of technology available and practical towards achieving these goals and minimizing their business risk and indeed compliance. “As an example, there are various options and concepts wherein return of investment for any CAPEX could also be offset by the benefits the carbon credits could give to the fleet due to possible pool sharing concept use.”

Margavbandhu Kumaraswamy

From Moser’s viewpoint, these regulations drive demand for low-carbon fuels. FuelEU Maritime’s GHG intensity targets and EU ETS carbon pricing make LNG and biofuels economically and operationally relevant today.

As for Al-Shibani, international regulatory frameworks play a crucial role in shaping the fuel strategy and guiding investment decisions. These are not just compliance obligations; they shape the commercial and environmental future of the maritime industry. One of the most significant developments is the International Maritime Organization’s (IMO) greenhouse gas pricing mechanism, set to be implemented in 2028.
“According to various reports from different sources, this mechanism will impose emissions-based penalties, which could be significant per ton of CO₂ equivalent. Vessels that exceed their GHG intensity limits will earn tradable carbon credits, offering financial rewards for proactive decarbonization efforts.”

As for Khoueiry, these regulations are key drivers of fuel transition strategy. The EU ETS and FuelEU Maritime regulations place a price on emissions and enforce GHG intensity reduction targets, which directly impact operational costs and compliance roadmap.
 

Yoichi Iga

Mr. Iga concludes this by saying, “As the transition to alternative fuels progresses, cost optimization will become a critical issue in corporate strategy. To respond effectively to emerging decarbonization regulations, it is essential not only to understand the direct regulatory costs but also to evaluate the broader financial impact, including fuel transition, ship construction, and operational expenses.”

Crew Training
All experts confirm that it is highly important to integrate seafarers into this huge transformation with crew training or safety concerns, specifically for handling or bunkering new fuels such as ammonia or hydrogen, as they are considered hazards—ammonia is toxic, and hydrogen’s invisible flame, along with its pressure storage, requires specialized systems. Also, collaboration with classification societies and partners ensures compliance, while established safety practices and guidelines support successful industry transition.

The Right Time
When talking about timing of adoption of alternative fuels into the industry, it is still not clear. Mr. Iga says that it is influenced by various factors such as the clarity of regulations, technological maturity, fuel availability, and infrastructure development. “That said, the IMO’s adoption of the mid-term measures is seen as a major step forward in shaping a unified decarbonization framework."

From Khoueiry’s point of view, there will be a timeline to adopt alternative fuels into the industry: 2025–2030 to drop-in biofuels and LNG to serve as transition fuels; 2030–2040 methanol and ammonia adoption will increase as production scales and bunkering infrastructure expands; 2040 onwards, hydrogen and e-fuels may gain traction, especially for short-sea and auxiliary applications, contingent on breakthroughs in technology, storage, and safety. Thus, full commercial viability and widespread global adoption are expected only after 2035, when regulatory certainty, supply infrastructure, and vessel readiness converge.

شربل خويري

Al-Shibani believes that it is anticipated that biofuels and LNG will achieve wider acceptance in the next 5 to 10 years, particularly as carbon pricing, penalties, and credits are fully implemented. Green hydrogen and ammonia are expected to emerge in the 2030s, as costs decrease and handling infrastructure becomes more prevalent.

علي بن عامر الشيباني

As for Moser, biofuels and LNG are scaling now and will continue to grow, especially in Europe. Fuels like ammonia will see commercial use from 2027 and will increase once regulations are defined, and infrastructure and production capacity increase. “A multi-fuel strategy will define the next decades. The upcoming IMO Net-Zero framework is also expected to push adoption and expansion worldwide.”

Kumaraswamy concludes that there is significant traction and adaptation already across various segments and geographies, some more and faster than others.

“What is heartening to see is that the various national bodies and government bodies are offering significant financial and other sops and funds toward assisting owners to adapt and look for the greener solutions, e.g., India, Europe, etc. Given the aggressive timelines and the scale of work needed, it is definitely a challenge that is at the doorstep, and there are some gains for first movers.”