Marine biofuels are the fastest-growing compliance fuel by volume: Singapore sold 1.36-1.38 Mt of bio-blends in 2025, up more than 54%, and Rotterdam sold 201,000 t of bio-bunkers in Q3 2025 alone. LPG dual-fuel remains a gas-carrier niche built on the Everllence ME-LGIP, with LPG and ethane-fuelled orders jumping to 55 in H1 2026 from 15 a year earlier.
What it is and how it works
FAME (fatty acid methyl ester) and HVO (hydrotreated vegetable oil) are drop-in fuels for existing marine diesel engines. FAME has slightly higher viscosity and HVO slightly lower than conventional distillate, so fuel-system guidance differs, as explained in the Lighthouse biofuel white paper, but both are compatible with most engines up to about B30 without capital expenditure. Singapore blends are typically B24, meaning 24% bio component in VLSFO, and the first B100 cargoes were delivered in 2025. Bioethanol extends the same drop-in logic to alcohol engines: the methanol dual-fuel Maersk Halifax bunkered about 5,000 t of certified bioethanol in Singapore in October 2026.
LPG is burned in the Everllence ME-LGIP, which Lloyd's Register identified in June 2024 as the only two-stroke LPG dual-fuel engine series, using a small quantity of compliant fuel oil as pilot. Its natural market is the very large gas carrier (VLGC), which can burn its own cargo, and the ammonia-ready VLGC/VLAC, which burns LPG now and ammonia later.
Why it matters now
Biofuel blends are the dominant no-capex route through FuelEU Maritime, EU ETS and CII for the existing fleet, which is why volumes grew more than 50% in a year. Regulators are loosening blend limits: MPA raised the allowable biofuel blend for Singapore-registered bunker ships from B25 to B30 from 7 March 2025, and IMO's PPR 12 issued an interim circular letting bunker ships certified as MARPOL Annex I oil tankers carry blends of up to 30% biofuel, per Offshore Energy. The IEA Bioenergy Task 39 report of April 2025 catalogues the remaining hindrances, chiefly sustainable feedstock and price rather than engine compatibility.
LPG dual-fuel matters because it underpins the ammonia-ready gas-carrier strategy and because the VLGC and ethane-carrier ordering wave made LPG and ethane the second-largest alternative-fuel category by count in H1 2026, with 55 orders against 73 for LNG, per Argus.
Key players and products
Singapore and Rotterdam are the hubs. In 2025 Singapore sold a record 56.2-56.8 Mt of bunkers, of which 1.36 Mt were biofuel blends, up more than 54%; the blends comprised about 969,000 t of VLSFO with a bio component, 374,000 t of HSFO-bio blends and about 26,000 t of the first B100, per Engine. Rotterdam's bio-bunker sales reached 201,000 t in Q3 2025, and Enilive (Italy) and Coral Marine (Greece) began offering HVO- or FAME-based marine biofuels in 2025, per Engine.
On the LPG side, Everllence (formerly MAN Energy Solutions) supplies the ME-LGIP; BW LPG, the world's largest VLGC operator with about 50 ships, has equipped 22 with LPG dual-fuel propulsion, starting with BW Gemini, whose 6G60ME-C9.2 was converted to a 6G60ME-LGIP, per Shipfinex. BGN and HD Hyundai Heavy Industries lead the newbuild wave.
Figures that matter
| Metric | Value | Source type | Source |
|---|---|---|---|
| Singapore biofuel blend sales, 2025 | 1.36-1.38 Mt, up more than 54% | regulatory | MPA via Baird Maritime |
| Singapore 2025 bio-blend breakdown | 969,000 t VLSFO-bio; 374,000 t HSFO-bio; 26,000 t B100 | trade-press | Engine |
| Rotterdam bio-bunker sales, Q3 2025 | 201,000 t | trade-press | Engine |
| Singapore blend limit for registered bunker ships | B25 to B30 from 7 March 2025 | regulatory | MPA |
| LPG and ethane-fuelled orders | 55 in H1 2026 vs 15 in H1 2025 | aggregator | DNV via Argus |
| BW LPG dual-fuel VLGC retrofits | 22 of about 50 ships | trade-press | Shipfinex |
| Drewry LPG fleet growth forecast | 7% in 2026; 16% in 2027 | aggregator | Drewry via Hellenic Shipping News |
| Maersk Halifax bioethanol stem, October 2026 | about 5,000 t | trade-press | Drewry |
Developments 2023-2026
- June 2024: Lloyd's Register's LPG report confirms the ME-LGIP as the only two-stroke LPG dual-fuel engine in the market.
- Early 2025: IMO PPR 12 agrees an interim circular allowing Annex I bunker tankers to carry blends up to 30% biofuel; MPA raises Singapore's limit to B30 in March.
- 2025: Singapore bio-blend sales reach 1.36 Mt including the first B100 cargoes; Rotterdam sells 201,000 t of bio-bunkers in Q3; Enilive and Coral Marine enter the European market.
- 2026: BGN orders ten dual-fuel VLGCs from HD Hyundai Heavy Industries; BW LPG orders eight 90,000 m3 LPG dual-fuel VLGCs for delivery from early 2029 to Q2 2030; LPG and ethane-fuelled orders reach 55 in H1.
- October 2026: Maersk Halifax bunkers about 5,000 t of certified bioethanol in Singapore, and the first green-ethanol-powered vessel secures a supply deal, per the EU Alternative Fuels Observatory.
Outlook
Biofuel demand will track EU compliance costs and CII tightening, but the HVO price premium over VLSFO and biofuel volumes beyond the two hubs were not found in the research. For LPG, Drewry expects fleet growth of 7% in 2026 and 16% in 2027 as VLGC, VLAC and ethane-carrier deliveries surge, keeping the ME-LGIP niche expanding while it stays confined to gas carriers.
