Biofuels offer a sustainable alternative to traditional fossil fuels by using organic materials such as vegetable oils, animal fats, and waste. Their potential to reduce lifecycle carbon emissions by up to 80% compared to conventional marine fuels has made them a critical solution for shipping. An advantage of biodiesel is its compatibility with existing fleets; it can be used as a “drop-in fuel” without requiring significant changes to vessels or infrastructure, facilitating quick adoption. Canada, with its substantial agricultural sector, is in a strong position to lead biofuel production, benefiting local economies and enhancing the agricultural and shipping sectors.
Canada Steamship Lines (CSL) and Algoma Central Corporation, two major marine shipping companies, have invested significantly in biofuel adoption. They’ve spent millions and dedicated years to researching biofuel blends, running trials that show biofuels’ operational viability for the Great Lakes and St. Lawrence Seaway. CSL, for example, began testing biofuels in 2019 and has since implemented its own biofuel programme, achieving a milestone with half of its Canadian fleet running on B100 biodiesel by 2021. Algoma Central Corporation, with a goal to reduce carbon intensity by 40% by 2030, initiated its biofuel trials in 2023. These efforts reflect the industry’s commitment to sustainable practices while enhancing global competitiveness.
Federal and provincial governments have introduced measures to support this transition. Compliance credits under clean fuel regulations incentivise fuel companies to supply cleaner options, promoting investment in renewable energy solutions. This approach helps companies meet environmental standards while possibly reaping economic benefits. Additionally, the 2024 federal budget included funding aimed at increasing clean fuel production and usage, encompassing research, development, and infrastructure improvements. This aligns with Canada’s climate objectives and highlights the need for joint efforts between government and industry.
However, challenges remain in fostering biofuel adoption across the marine sector. Canadian regulations, including regulatory misalignments with the United States, are a key area for improvement. Canadian ship operators often need special permissions for each biofuel use, and some turn to U.S.-produced biofuels due to more favourable incentives. Harmonising regulations and aligning incentives would streamline the process, helping companies adopt cleaner fuels without excessive red tape.
According to Bruce Burrows, President and CEO of the Chamber of Marine Commerce, biofuels represent an essential opportunity for Canada’s marine shipping industry to lower its carbon footprint and support national sustainability goals. With added government support and regulatory alignment, the industry could make substantial progress toward achieving carbon reduction targets, which are crucial in the fight against climate change.
Quadrise plc (LON:QED) is an energy technology provider whose solutions enable production of cheaper, cleaner, simpler and safer alternatives to fuel oil and biofuels, proven in real world applications. Quadrise technologies produce transition fuels called MSAR® and bioMSAR™, which allow clients in the shipping, utilities and industrial sectors to reduce carbon emissions whilst also saving costs.
