The maritime industry continued to expand its use of renewable fuels throughout 2025 as shipowners sought practical strategies to reduce greenhouse gas emissions and comply with new European regulations. Among the renewable fuel options currently available, biodiesel emerged as one of the most widely deployed solutions, with several major shipping companies reporting successful use of both neat biodiesel (B100) and lower-level biodiesel blends across commercial fleets.
The growing adoption reflects an important reality facing the shipping sector: while battery-electric propulsion may be practical for some ferries, harbor craft, and other short-distance vessels, the vast majority of oceangoing cargo ships, tankers, and bulk carriers require an energy-dense liquid fuel capable of powering vessels across thousands of miles. For these applications, renewable liquid fuels—including biodiesel, renewable diesel, renewable methanol, ethanol, biomethane, and, eventually, ammonia and hydrogen—are expected to play a central role in reducing emissions while maintaining reliable operations.
One of the primary drivers of increased biofuel adoption has been the European Union’s FuelEU Maritime regulation, which encourages the use of lower-carbon marine fuels by establishing progressively stricter greenhouse gas intensity requirements for vessels calling at European ports. Rather than relying on a single technology, many operators are pursuing a portfolio of renewable fuel options that can be implemented today while next-generation propulsion systems continue to mature.
Several leading shipping companies reported expanding their use of biodiesel during 2025.
Bermuda-based tanker owner Teekay Tankers consumed more than 6,000 metric tons of biofuels during the year on selected voyages to comply with FuelEU Maritime requirements. The company utilized both B100 and B30 blends with conventional marine fuels.
Fellow tanker operator AET reported consuming approximately 3,200 metric tons of B24 and B30 biodiesel blends across its fleet while continuing to evaluate additional low-carbon fuel pathways.
Canadian shipping company Canada Steamship Lines (CSL) also expanded its biodiesel use. To meet FuelEU requirements for European operations, CSL bunkered approximately 1,500 metric tons of B6 and 1,300 metric tons of B30 aboard three vessels operating in Europe.
Perhaps even more significant was CSL’s continued deployment of biodiesel on the Great Lakes. Between May and October 2025, the company bunkered approximately 16,000 metric tons of B100 across 10 vessels operating throughout the Great Lakes region. The deployment represents one of the largest publicly disclosed uses of neat biodiesel by a commercial fleet on the inland maritime system and demonstrates that higher biodiesel blends can successfully support demanding commercial shipping operations.
The Great Lakes-St. Lawrence Seaway represents a particularly promising market for renewable marine fuels. The system serves as a critical transportation corridor connecting the industrial Midwest to global markets, carrying more than 135 million tons of cargo annually, including iron ore, grain, limestone, cement, steel, salt, petroleum products, and other bulk commodities. The region is home to numerous bulk carriers, tugboats, dredges, ferries, research vessels, and government fleets that could potentially benefit from lower-carbon liquid fuels without requiring wholesale engine replacement.
Unlike many emerging marine fuels that require new vessel designs or specialized fueling infrastructure, biodiesel offers a near-term solution because it can often be used in existing diesel engines with little or no modification, depending on engine manufacturer approvals and blend levels. Existing storage tanks, pipelines, and bunkering infrastructure can also support biodiesel distribution, allowing operators to reduce lifecycle greenhouse gas emissions while leveraging current assets.
Singapore-based Eastern Pacific Shipping (EPS) likewise expanded its renewable fuel portfolio, bunkering approximately 18,000 metric tons of biofuel during 2025. Notably, 94% of the company’s biofuel purchases consisted of B100, underscoring growing confidence in higher biodiesel blends for commercial marine applications.
The cruise industry also continued exploring renewable fuels. MSC Cruises consumed approximately 3,000 metric tons of biofuels across two vessels, including 1,700 metric tons of hydrotreated vegetable oil (HVO100) during a four-month trial aboard MSC Opera. The company also utilized 570 metric tons of HVO100 aboard MSC Seaview and an additional 680 metric tons of a B24 blend consisting of 24% biofuel and 76% very low sulfur fuel oil (VLSFO).
Beyond biodiesel, shipping companies continued evaluating other renewable fuel options as part of broader decarbonization strategies.
Liquefied biomethane (LBM) gained additional traction during 2025, particularly among operators with LNG dual-fuel vessels. Eastern Pacific Shipping reported consuming approximately 8,000 metric tons of LBM during the year, while MSC Cruises bunkered roughly 6,800 metric tons of mass-balanced liquefied biomethane aboard the LNG-powered MSC World Europa. The renewable gas was produced from waste-derived feedstocks—including food waste, manure, sewage sludge, and other organic materials—before being injected into Europe’s natural gas network for marine bunkering through a mass-balancing system.
AET also completed its first liquefied biomethane trial aboard one of its LNG dual-fuel vessels earlier this year, illustrating the industry’s continued evaluation of multiple renewable fuel pathways.
At the same time, marine fuel innovation extends beyond biodiesel and biomethane. Several global shipping companies have begun demonstrating renewable methanol and ethanol as alternative marine fuels. Methanol-powered vessels are increasingly entering commercial service, while ethanol has also been publicly evaluated in marine applications because it can be produced from renewable agricultural feedstocks and offers another potential pathway for reducing lifecycle carbon emissions. These demonstrations reinforce the industry’s recognition that no single fuel will meet every operational requirement or vessel type.
As international shipping works toward increasingly ambitious emissions reduction targets, many experts anticipate a diverse future fuel landscape. Biodiesel and renewable diesel provide immediate, drop-in solutions for existing diesel-powered fleets, while methanol, ethanol, biomethane, ammonia, hydrogen, and other emerging technologies are expected to serve specialized applications as infrastructure and vessel technologies continue to evolve.
For the Great Lakes maritime industry, biodiesel may represent one of the most practical opportunities available today. With existing diesel-powered vessels, established fuel supply infrastructure, and a strong regional agricultural economy capable of producing renewable feedstocks, the region is well-positioned to expand the use of lower-carbon marine fuels. As demonstrated by operators such as Canada Steamship Lines, biodiesel is already proving capable of supporting commercial marine operations while helping reduce lifecycle greenhouse gas emissions—a model that could be replicated across additional fleets throughout North America and around the world.
Adapted from an article shared by Engine Online. Image Credit: iStock by Getty Images – Denys Yelmanov. Used under license.