Market outlook for biofuels for shipping on the Nordic market

Research Project, 2024 – 2026

The transition to renewable fuels such as biofuels is crucial for achieving long-term goals to reduce climate change. Despite this, there is limited knowledge about the market prospects for biofuels in the maritime sector, both in terms of supply and price. This study aims to map the direction and conditions for biofuels as bunker fuel in the Nordic market. It intends to provide insights into potential opportunities, risks, and challenges that may affect the conditions for biofuels in the market in the future.

The project will analyze factors influencing the supply, such as availability, costs, and regulations for biofuels in shipping, and present a comprehensive view of the market's potential and development opportunities. The focus will be on aspects such as price trends, production volumes, competition from other sectors, incoming regulations, the influence of potential geopolitical events, and raw material availability. Potential market interactions between different biofuels, such as co-production, will also be highlighted.

The project is primarily focused on biofuels well-known in the maritime industry, such as biogas and biomethanol, and the analysis will concentrate on five- and fifteen-year perspectives.