Business

Argus Media viewpoint: US biofuels bunker demand seen muted

Demand from larger, ocean-going vessels will likely remain muted from a lack of US biofuel bunkering subsidies and strong international competition, says Stefka Wechsler.

Published

3 years ago

December 27, 2022

Admin

Biofuels used for bunkering could see an uptick in use in New York and California in 2023, driven by smaller, harbor vessel demand, but demand from larger, ocean-going vessels will likely remain muted from a lack of US biofuel bunkering subsidies and strong international competition.

23 December 2022

Harbor supply vessels — including ferries, tug boats, bunker barges and dredgers, among others — ply US territorial waters burning ultra-low sulphur diesel (ULSD). They are also allowed to burn B30 biodiesel made from blending 70pc ULSD and 30pc US-price subsidized biodiesel.

Rising ULSD prices in New York could drive up interest in B30 blends this winter. A B30-ULSD blend was pegged at $8.80/t discount to outright ULSD in New York in November, Argus data showed.

In October and early November, US Atlantic coast distillate inventories dropped to their lowest levels since May and April this year and approached their prior multi-decade lows of April 1996, amid steep backwardation that discouraged storage. Global diesel supplies have been tight because of Russia’s ongoing conflict with Ukraine. The EU ban on Russian petroleum products imports set to take effect on 5 February should tighten US Atlantic and Gulf coasts distillate inventories in the first half of next year.

Separately, California will require commercial harbor craft vessels in the state to burn renewable diesel (R99) instead of ULSD starting on 1 January. The state’s environmental agency California Air Resource Board (CARB) forecasts harbor craft vessel demand for R99 in California at 3,562 b/d in 2023. In November, Argus assessed R99 at a $213.60/t premium to ULSD in Los Angeles.

Little to no large ship demand

Despite the expected uptick in New York and California demand, demand for US biofuel for bunkering by ocean-going vessels is expected to remain muted next year.

Globally, interest in biofuels as low-carbon bunker fuels alternatives has grown, because unlike methanol, ammonia and LNG, biofuels are plug-and-play fuels that do not require vessel retrofitting. But ocean-going vessels such as container ships, dry bulk carriers and oil tankers are currently not allowed to purchase US-tax payer subsidized biodiesel. This is because ocean-going vessels would burn the bulk of the fuel in international waters, instead of in US territorial waters.

In November, B30, a blend of 30pc un-subsidized biodiesel and 70pc VLSFO was pegged at $1,133/t in the US Gulf coast, compared to $762/t in Amsterdam-Rotterdam-Antwerp. If ocean-going vessels were allowed to buy US-subsidized biodiesel, B30 in the US Gulf coast would have cost them $785/t in November, Argus data showed. Rotterdam sold 522,167t of biodiesel blends in the first nine months of 2021 compared with the US, where ship owners have been only occasionally trialing burning biodiesel. The lack of biodiesel bunker demand in the US is expected to remain in 2023.

Another low-carbon marine fuel option deemed feasible by the marine shipping industry is green methanol, which includes bio-methanol and e-methanol. Bio-methanol is made from sustainable biomass feedstocks and e-methanol is derived from renewable electricity and CO2.

Currently, green methanol prices are not competitive with conventional marine fuel prices. But grey methanol — produced using natural gas and coal — has been cheaper than marine gasoil (MGO). Grey methanol was assessed 26pc cheaper than MGO, or $264/t below MGO in November in the US Gulf, Argus assessments showed. Burning grey methanol does not significantly reduce CO2 emissions compared with MGO, but grey methanol does not contain sulphur and can substitute MGO, which has 0.1pc sulphur maximum limit in US territorial waters.

Ship owners looking to commission new vessels can invest in dual-fuel methanol burning vessels, substitute their MGO burn with grey methanol to reduce their bunker costs, while waiting to see if green methanol prices ease. Demand for grey methanol for bunkering could see an uptick in the US Gulf.

By Stefka Wechsler

Photo credit and source: Argus Media
Published: 27 December, 2022

Mass Flowmeter

Hong Kong backs MFM adoption with voluntary scheme to boost bunkering competitiveness

Hong Kong’s Marine Department launched the Quality Bunker Operator Scheme to encourage bunker operators to install and use mass flow meter systems on their bunker vessels.

Published

14 hours ago

June 4, 2026

Admin

Hong Kong’s Marine Department (MD) on Wednesday (3 June) launched the Quality Bunker Operator Scheme to encourage bunker operators to install and use mass flow meter systems (MFM systems) on their bunker vessels.

MD said the scheme aims to enhance Hong Kong’s bunkering service quality and the competitiveness of Hong Kong ports, thereby further consolidating Hong Kong’s position as an international maritime centre and a major bunkering port.

Under the Scheme, bunker operators of traditional maritime fuel and biodiesel that install and use MFM systems on their bunker vessels, with the MFM systems inspected and certified by an accredited body in accordance with the International Organization for Standardization’s ISO 22192 Standard or equivalent requirements, can apply to the MD for inclusion in the scheme’s “List of Quality Bunker Vessels”, provided they meet the relevant technical and operational requirements.

Details of the bunker vessels successfully included in the List will be published on a dedicated page on the MD’s website for reference by shipping companies and relevant stakeholders.

Participation in the Scheme is voluntary. In addition to receiving recognition from the MD, participating bunker operators will benefit from enhanced corporate image and competitiveness through the adoption of MFM systems, thereby boosting customers’ confidence and helping to create new business opportunities.

A spokesman for the MD, said: “As an international maritime centre supported by our country, Hong Kong has a strategic location adjacent to major international fairways. Coupled with years of development in marine fuel bunkering, Hong Kong possesses rich experience and talent in the field. For many years, Hong Kong has consistently ranked as the seventh-largest bunkering port globally, the second-largest in our country, and the largest in the Greater Bay Area, providing reliable and competitive fuel bunkering services to ocean-going vessels from around the world.

“As the international shipping industry has an increasing demand for accuracy and transparency in bunkering services, service quality and measurement precision in bunkering operations have become important indicators of a bunkering port’s competitiveness. The Scheme will enhance bunkering accuracy and transparency, further enhancing the quality of Hong Kong’s bunkering services.

The spokesman added that comprehensive port services are one of Hong Kong’s key advantages as an international maritime centre.

“We will also mandate the use of MFM systems on all methanol bunker vessels this year to ensure that Hong Kong continues to provide high-quality bunkering services in the era of green maritime fuels.”

Note: The application form for the Scheme can be found on the MD’s website. Interested bunker operators can download the application form from the website or contact the MD’s Green Maritime Fuel Team via email ([email protected]) for details.

Photo credit: Manifold Times
Published: 4 June, 2026

Alternative Fuels

MPA and MSC ink MoU to support adoption of alternative bunker fuels

MPA and MSC will explore new routes and services to strengthen connectivity, support the adoption of alternative marine fuels such as bio-LNG, and advance technologies to improve vessel energy efficiency.

Published

14 hours ago

June 4, 2026

Admin

MPA and MSC ink MoU to support adoption of alternative bunker fuels

The Maritime and Port Authority of Singapore (MPA) on Wednesday (3 June) said it signed a Memorandum of Understanding (MoU) with MSC Mediterranean Shipping Company to strengthen collaboration in maritime decarbonisation, digitalisation, innovation, and manpower development.

The MoU was signed on 25 May 2026 by Mr Ang Wee Keong, Chief Executive of MPA, and Mr Soren Toft, Chief Executive Officer of MSC.

The MoU underscores the shared commitment of MPA and MSC to foster a sustainable, digital, and future-ready maritime sector, while enhancing MSC’s operational and business activities in Singapore. This year also marks the 30th anniversary of MSC establishing its Asia Regional Office and local office in Singapore.

Under the MoU, MPA and MSC will explore new routes and services to strengthen connectivity, support the adoption of alternative marine fuels such as bio-LNG, and advance technologies to improve vessel energy efficiency and operational performance.

MPA and MSC will also collaborate on maritime digitalisation initiatives to improve operational efficiency, including streamlining vessel arrivals and port operations.

On manpower development, MSC will support internship and scholarship opportunities through Singapore Maritime Foundation’s Maritime Outreach Network (MaritimeONE) platform, an industry-led tripartite partnership comprising industry, government and institutes of higher learning that aims to raise awareness of the maritime industry and attract quality talent into the maritime sector.

Mr Ang Wee Keong, Chief Executive of MPA, said: “This partnership reflects the strong collaboration between MPA and MSC in driving sustainability and digitalisation in the maritime sector. By working together on decarbonisation, operational efficiency and talent development, we aim to strengthen Maritime Singapore’s position as a trusted and future-ready global maritime hub.”

Mr Soren Toft, Chief Executive Officer of MSC, said: “Singapore is a strategically important hub for MSC and a key gateway to the broader Asia region. As we mark 30 years in Singapore, this MOU reinforces our long-term commitment to strengthening our presence here. MSC and Singapore are closely aligned on the priorities shaping the future of global shipping, and we look forward to deepening this partnership to drive the continued growth and resilience of the maritime industry.”

Photo credit: Maritime and Port Authority of Singapore
Published: 4 June, 2026

Emissions reporting

StormGeo and OceanScore link emissions data, compliance workflows

Cooperation combines StormGeo’s expertise in operational vessel and emissions data with OceanScore’s expertise in emissions compliance workflows across EU ETS, FuelEU Maritime and UK ETS requirements.

Published

14 hours ago

June 4, 2026

Admin

StormGeo and OceanScore link emissions data, compliance workflows

Weather intelligence and decision support solutions provider StormGeo and Hamburg-based technology platform OceanScore on Wednesday (3 June) said they have deepened their ongoing cooperation through the signing of a collaboration agreement during Posidonia 2026 in Athens on 2 June.

The cooperation combines StormGeo’s expertise in operational vessel and emissions data with OceanScore’s expertise in emissions compliance workflows across EU ETS, FuelEU Maritime and upcoming UK ETS requirements.

Together, the companies aim to help shipping companies seamlessly navigate increasing regulatory complexity more efficiently — from emissions reporting and data validation to compliance exposure management, pooling and financial settlement.

As emissions regulation becomes an increasingly important part of commercial shipping operations, the need for reliable operational data and streamlined compliance processes continues to grow. The cooperation between StormGeo and OceanScore is designed to support shipping companies with more connected, transparent and actionable processes across operational and commercial teams.

“From the outside, companies like StormGeo and OceanScore may sometimes be perceived as competitors because both operate around emissions and compliance workflows,” said Albrecht Grell, Managing Director at OceanScore.

“But in reality, the industry increasingly needs both perspectives working together: trusted operational emissions data on one side and commercial compliance execution on the other. Our cooperation reflects that shipping companies are no longer looking for isolated solutions — they need connected processes, automated across different systems and reliable decision-making throughout the full compliance chain.”

By connecting validated operational emissions data with commercial compliance management, the cooperation supports workflows across:

emissions reporting and validation
compliance management across EU ETS, FuelEU Maritime and upcoming UK ETS requirements
exposure visibility and cost transparency
pooling, settlement and financial processes

The cooperation also aims to improve commercial transparency and coordination across operational and commercial stakeholders.

“StormGeo plays a central role in helping shipping companies turn operational vessel and emissions data into trusted, decision-ready insights,” said Espen Martinsen, Chief Commercial Officer at StormGeo.

“As emissions regulations become more complex, this data is essential for transparent and efficient compliance management. By working with OceanScore, we can help customers connect StormGeo’s validated operational data with commercial compliance processes, creating a more integrated and practical approach to emissions management.”

The signing ceremony took place at the StormGeo booth during Posidonia 2026 in Athens and was attended by representatives from both companies.

Both companies expect the cooperation to continue evolving alongside upcoming regulatory developments, including FuelEU Maritime, EU ETS, the upcoming UK ETS and future emissions-related frameworks affecting global shipping.

Photo credit: StormGeo
Published: 4 June, 2026