As net-zero dynamics gather traction in the ocean freight industry, UK-based insurance multinational North Standard is seeing a strong uptake of biofuels.
Says Mark Smith, loss prevention director for decarbonisation at the protection and indemnity (P&I) club: “These are genuine drop-in fuels, removing the need for engine and tank conversions and/or dual-fuel system installations. That makes biofuels viable for older ships coming to the end of their operational lives.”
However, risk is part of this greener fuel strategy.
“As a club, we are already seeing biofuel-related claims, mostly related to problems with blocked filters and/or purifiers – and P&I clubs can expect more of the same as the uptake continues.”
Smith also warns that in some cases, opportunist vendors may use lower quality cutter stock to raise their profits by mixing it with fuel blends, thereby compromising personnel safety and vessel and component integrity.
“This is a trend we noted at NorthStandard post IMO 2020’s sulphur cap with very low sulphur fuel oils (VLSFOs).”
- This is an excerpt from a column.
