Inland shipping fuels focus: Challenges of biofuels

With increasing pressure from European regulations and the urgent need for sustainability, the industry is rapidly exploring alternative fuels such as biodiesel, HVO (Hydrotreated Vegetable Oil), hydrogen and methanol.

While this transition is essential for reducing CO₂ emissions and meeting climate goals, it also brings significant technical, operational, and financial challenges, especially for the traditionally ageing fleet that dominates the inland waterways.

As insurers, we play a crucial role in this transition phase. With our risk expertise and focus on prevention, we can help shipping companies not just financially but also strategically.

Technical challenges of biofuels

One of the biggest obstacles to using biofuels is compatibility with existing engines and fuel systems. Biofuels like FAME (Fatty Acid Methyl Esters), a widely used biodiesel, have different chemical properties compared to fossil diesel. They are hygroscopic, meaning they absorb water easily, which can lead to bacterial growth and sludge formation in fuel tanks. This increases the risk of clogged filters and damage to fuel injection systems.

Furthermore, some biofuels have lower oxidative stability, causing them to degrade faster during storage. For shipowners who don’t operate daily, this can become a serious problem.

Other alternative fuels such as methanol or hydrogen require more fundamental adjustments on board. These include specially adapted tanks, piping, and safety features due to the flammability or toxicity of these fuels. Moreover, the availability of such fuels along waterways remains limited, reducing their immediate practicality.

Onboard measures to prevent damage from new fuels

To ensure a safe and efficient transition to biofuels, inland vessel operators can take several precautionary measures:

1. Tank Cleaning and Maintenance: Before switching to biofuels, it’s essential to thoroughly clean fuel tanks to remove old residues. A clean tank helps prevent contamination and bacterial growth.

2. Use of Water Separators and Extra Filters: Due to the water-absorbing nature of some biofuels, installing water separators and fine fuel filters is advisable. Regular filter replacement helps prevent clogging and damage.

3. Condition Monitoring: Modern monitoring systems can continuously assess fuel quality, helping detect contamination or degradation early.

4. Additives and Stabilizers: For biofuels with lower oxidative stability, additives can improve shelf life and inhibit bacterial growth.

5. Crew Training Programs: Crews must be familiar with the specific characteristics and risks of alternative fuels. Training on safety, handling, and maintenance is crucial.

6. Periodic Maintenance of Fuel Systems: Regular inspections and maintenance of pipelines, injectors, and filters reduce the risk of technical failures and extend system lifespan.

7. Communication with the engine manufacturer and follow their additional instructions when using biofuel.

Conclusion

In both the Netherlands and Belgium, initiatives are under way to support this energy transition. Programmes like the Green Deal for Maritime Transport, Inland Shipping and Ports or Flemish greening road maps promote knowledge-sharing, pilot projects and financial support. However, innovation is not keeping pace with the urgency. The fragmented nature of the fleet and limited economies of scale make many shipowners hesitant to invest.

Insurers can help in several ways, by offering tailored risk assessments; preventive insurance conditions; technical expert contacts; independent damage analysis; and educational support.

The shift towards alternative fuels in inland shipping – and across maritime – is inevitable and necessary. While this transformation involves considerable challenges, it also offers major opportunities for a more sustainable and resilient sector. By fostering cooperation among shipowners, governments, technical experts, and insurers, the inland shipping industry can make this transition with minimal risk and maximum benefit.

As insurers, we are ready to take on this role—not just as risk bearers, but as active partners in the journey toward cleaner, safer inland shipping.