By Jakob Bejbro Andersen, CEO at MASH Makes

The International Maritime Organization (IMO)recently delivered one of the most significant policy shifts in shipping's history. Its new framework introduces global fuel intensity targets and economic penalties, making greenhouse gas (GHG) emissions compliance a binding reality for the industry.

According to the May 2025 report IMO Policy Measures: What’s Next for Shipping’s Fuel Transition?, this framework could catalyse a meaningful shift towards scalable zero-emissionfuels.

At MASH Makes, we see this as a crucial window of opportunity to make an impact. Our recent vessel trial with NORDEN proves that sustainable, drop-in biofuels are ready now to support compliance and lay the groundwork for long-term transition. These are not short-term fixes at the expense of long-term solutions. Rather, they are stepping stones that are fully compatible with the future direction of the industry. Solutions like ours are essential for scaling sustainable fuel systems now while building toward deeper decarbonisation.

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The IMO's regulatory shift

The new policy architecture, established in April 2025, introduces a global fuel standard with yearly greenhouse gas intensity (GFI) targets from 2028 to2040. Compliance options include switching to low-emission fuels, purchasing surplus units (SUs) from over-complying vessels, or paying penalties via remedial units (RUs).

Some uncertainties remain, particularly around the exact value of financial rewards for zero- and near-zero-emission (ZNZ) fuels. But the direction is clear: rising rewards, steeper penalties, and costlier fossil-based compliance options.

But how can this be achieved? According to the insight brief, which is based on total cost of ownership (TCO) modelling by UMAS  and University College London (UCL) and over 30 stakeholder interviews:

●  E-fuels such as e-ammonia and e-methanol are essential for long-term decarbonisation but remain commercially unviable without near-term policy support.

● Early adoption of scalable zero-emission fuels is crucial to avoid bottlenecks and build value chains in time.

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Where biofuels fit in the transition

In the near term, many shipowners are likely to rely on drop-in solutions like advanced biofuels to meet compliance targets without expensive retrofitting. This is where MASH Makes' Advanced Biofuel stands out. Produced from agricultural residues, our biofuel is a low-emission, non-food-competing fuel that can be used in existing marine engines. It also contributes to carbon removal via its co-product, biochar, which can be applied to fields to improve soil quality and crop yields. By focusing on drop-in solutions like biofuels, shipowners can start addressing their emissions today.

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Proof of viability at sea

MASH Makes recently completed the world’s first successful vessel engine trial from Singapore to Brazil using fuel from a carbon-negative production process in partnership with Danish shipowner NORDEN. The results showed that our biofuel is comparable to ISO 8217 fuel standards, performing reliably across a range of pressures and loads. There were no injector issues, clogging, or excess emissions. This positions our fuel as a viable option for immediate compliance under the IMO’s new framework, depending on final reward structures and sustainability criteria.

It’s also worth acknowledging how remarkable it is that the IMO is considering a carbon tariff at all. For years, such a move seemed politically out of reach. Now, it’s a serious part of the discussion. That’s worth celebrating!

While e-fuels are the long-term goal, biofuels can bridge the gap:

● They offer a ready-to-deploy solution for the 2028–2035 period.

● They allow shipowners to comply without locking into expensive retrofits.

● They may enable early movers to generate surplus units (SUs) and build experience with alternative fuels.

The Global Maritime Forum report makes it clear: the IMO must now finalise and implement strong financial rewards for ZNZ fuels to close the cost gap between e-fuels and their blue or fossil-based alternatives. Until then, high-quality biofuels like ours remain a critical enabler of early compliance, especially as the industry ramps up production and adoption of scalable zero-emission fuels.

To learn more about MASH Makes biofuel, visit www.mashmakes.com/biofuel

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