The ongoing Middle East crisis and disruption to flows through the Strait of Hormuz are strengthening the commercial case for B100 (FAME) as an alternative marine fuel, according to fuel testing firm VPS.
In a market update, VPS said the crisis has significantly impacted global energy supply chains, with tanker movements constrained and around 1.15 million b/d of middle distillates affected, tightening availability and pushing prices higher.
This has left marine distillates particularly exposed, with additional pressure from elevated insurance premiums further increasing delivered fuel costs.
Against this backdrop, VPS noted that B100 pricing — linked partly to agricultural feedstocks — has become comparatively more attractive, narrowing the gap with conventional distillates.
In some cases, shipowners may now see near-parity or even a cost advantage on a voyage basis, particularly when factoring in emissions-related savings under regulatory frameworks such as FuelEU Maritime.
The firm added that uptake of biofuels is already increasing, with B30 blends currently the most common configuration. However, interest in B100 is growing as market conditions shift.
Despite the improving economics, VPS cautioned that B100 requires careful fuel management and handling.
Key risks include oxidation, water absorption, microbial growth, and potential fuel dilution of lubricating oil, particularly in four-stroke engines. Storage stability is also more limited compared to conventional fuels.
To mitigate these risks, VPS recommends measures including tank cleaning prior to use, compatibility testing, and enhanced onboard monitoring, particularly during initial adoption.
While fossil fuels remain dominant, VPS said the current market environment — marked by distillate price volatility and supply uncertainty — is accelerating the role of biofuels in the marine energy mix.
“The commercial case for B100/FAME is expected to strengthen,” the company said, pointing to both market dynamics and regulatory drivers.
