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ENGINE on Biofuel Bunker Snapshot: Chinese UCOME price holds steady despite upcoming EU tariffs

UCOME FOB price remains steady in the ARA hub; ,market adopts a wait-and-see approach for EU tariffs.

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ENGINE on Biofuel Bunker Snapshot: Chinese UCOME price holds steady despite upcoming EU tariffs

Once a week, bunker intelligence platform ENGINE will publish a snapshot of biofuel bunker prices in the world’s two biggest bunkering hubs. The following is the latest snapshot:

29 July 2024

  • UCOME FOB price remains steady in the ARA hub
  • Market adopts a wait-and-see approach for EU tariffs

Singapore

Singapore’s B24-VLSFO UCOME price has shed $6/mt in the past week, while its B24-LSMGO UCOME price has declined by a greater $11/mt. Declining values of pure VLSFO ($2/mt) and LSMGO ($10/mt) have contributed to drag the two benchmarks lower.

The PRIMA-assessed UCOME FOB China benchmark was at $990/mt on Friday, unchanged on the week. The benchmark remained steady even after the European Commission (EC) announced provisional tariffs on Chinese imports of biodiesel.

The UCOME FOB China benchmark has been assessed between $990-1,000/mt over the past two weeks. According to PRIMA Markets, factors like the EU’s provisional anti-dumping duties and Chinese officials’ push for domestic blending policies have restricted price volatility in the UCOME market.

Offer levels ranging between $1,010-1,050/mt for UCOME FOB China in bulk were seen before the provisional duties were revealed by the EU.

Singapore’s B24-VLSFO UCOME price premium over pure VLSFO has narrowed by $4/mt on the week to $113/mt. Lead times of up to 10 days are generally recommended to secure B24-VLSFO from suppliers, a source said.

Spot bio-bunker demand remains low in Singapore, two traders said.

B24-VLSFO is priced about $10/mt lower in Singapore than in Guangzhou, and $30/mt lower than in Hong Kong.

Rotterdam

The port’s bio-bunker prices have declined slightly more than Singapore’s. Rotterdam’s B30-VLSFO HBE price has dropped by $13/mt in the past week, while its B30-LSMGO HBE price has plunged by $17/mt.

The two benchmarks have declined despite palm oil mill effluent methyl ester (POMEME) price holding steady. PRIMA assessed the POMEME price in the ARA at $1,383/mt on Friday, unchanged on the week.

POMEME-based biofuels qualify for Dutch HBE credits. This makes POMEME a popular advanced biofuel feedstock as Dutch HBE units qualify for bunker suppliers and can translate into price rebates for buyers.

PRIMA has assessed HBE A tickets at €8.45/GJ ($9.16/GJ), which is up by €0.45/GJ ($0.42/GJ) on the week. This equates to a theoretical $82/mt rebate for B30 HBE blends sold in the Netherlands, up by $5/mt on the week.

Biofuel price premiums over pure conventional fuels in Rotterdam are $186/mt for B30-VLSFO HBE blends and $139/mt for B30-LSMGO HBE blends.

Rotterdam’s B30-VLSFO UCOME price has declined by $19/mt in the past week, which is greater than its B30-VLSFO HBE price drop. Despite a bigger price drop, the UCOME blend is priced about $65/mt higher than the HBE blend. This is because UCOME-based biofuel blends don’t qualify for Dutch HBE credits, making them less attractive.

The UCOME FOB ARA benchmark was assessed at $1,363/mt by PRIMA on Friday, unchanged on the week. PRIMA Markets says, “the market is adopting a wait and see attitude to the [EU’s] anti-dumping duties, as the current oversupply situation in the market is still preventing demand from flourishing and prices to spike in the short to medium-term.”

By Nithin Chandran

 

Photo credit and source: ENGINE
Published: 30 July 2024

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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.

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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

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Biofuel

BHP and GCMD trial multi-feedstock B100 bio bunker fuel on bulk carrier

Bio-blend in the BHP and GCMD pilot is being used on a BHP-chartered bulk carrier “Berge Lyngor”, which was bunkered in Singapore in early May.

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BHP and GCMD trial multi-feedstock B100 bio bunker fuel on bulk carrier

BHP and the Global Centre for Maritime Decarbonisation (GCMD) on Wednesday (3 June) said they have blended biofuels from two distinct feedstocks—used cooking oil and waste animal fats —and introduced the lower-emissions marine fuel into a BHP-chartered bulk carrier as part of a pilot project.

The bio-blend in the BHP and GCMD pilot is being used on a BHP-chartered bulk carrier Berge Lyngor, owned and operated by Berge Bulk, transporting BHP iron ore from Western Australia to China. When run on bio-blend, the vessel has the potential to reduce well-to-wake greenhouse gas emissions by approximately 79 per cent per voyage compared to sailing on very low sulphur fuel oil (VLSFO).

The vessel bunkered in Singapore in early May with a B100 bio-blend comprising 50 percent tallow-derived biodiesel, sourced and supplied by HAMR Energy, and 50 per cent used cooking oil (UCOME) supplied by Mitsui & Co Energy Trading Singapore (METS).

Mitsui also blended the fuel and Dan-Bunkering coordinated and executed the bunkering operation, which was performed by Global Energy’s barge MT Maple.

The BHP and GCMD pilot will assess how biofuels from multiple feedstocks can be blended, handled, and introduced under real-world operating conditions using existing used cooking oil bunkering infrastructure.

At the same time, insights from this pilot will help identify solutions to challenges related to fuel quality, handling, traceability, and onboard vessel performance.

Biofuels for global shipping today rely heavily on used cooking oil – a feedstock whose availability is approaching its projected limits. Biofuel from waste animal fats presents a promising option to expand the supply of lower-emissions marine fuels.

The outcomes of the pilot are expected to shed light on the practical steps to integrate biofuel blends from different feedstocks into existing supply chains. The diversity of biofuels will provide shipowners and operators with greater flexibility to optimise fuel procurement based on cost, availability, and lifecycle emissions performance.

Biofuels derived from different feedstocks can exhibit varying properties that may impact operations, including potential corrosion from oxidation, fuel system clogging caused by wax formation, which this pilot aims to assess.

The pilot will trace and verify the biofuel blend’s integrity aimed at bolstering confidence in emissions reductions reporting. The pilot will also provide insights into how robust tracing can support future marine fuel supply chains where biofuels from multiple feedstocks with varying lifecycle greenhouse gas emissions footprints are blended together.

This project is co-funded by the Maritime and Port Authority of Singapore under the Maritime Innovation and Technology Fund (MINT).

 

Photo credit: Global Centre for Maritime Decarbonisation
Published: 3 June, 2026

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Biofuel

NYK starts one-year B100 bio bunker fuel trial on car carrier

In this trial, NYK will operate a car carrier continuously on B100 for one year to evaluate the impact on engines, fuel supply systems, and operational practices.

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NYK starts one-year B100 bio bunker fuel trial on car carrier

Japanese shipping firm NYK on Tuesday (2 June) said it has commenced a one-year long-term trial involving the continuous use of 100% biofuel (B100) on an NYK-operated car carrier. 

In this trial, NYK will operate a car carrier continuously on B100 for one year to evaluate the impact on engines, fuel supply systems, and operational practices. High-purity biofuels such as B100 are known to be susceptible to degradation from oxygen, light, and heat, raising concerns about the stability of such fuels during long-term use.

In this trial, the biofuel primarily comprises FAME (Fatty Acid Methyl Ester) derived from used cooking oil and similar feedstocks.

The initiative is designed to evaluate the fuel’s effects on the vessel’s equipment and verify operational safety under real-world conditions. 

Through this effort, NYK seeks to accumulate technical expertise that will support the broader use of high-purity biofuels and further accelerate efforts to reduce greenhouse gas (GHG) emissions.

NYK has been advancing the use of biofuels through various initiatives. In 2024, the company conducted a trial using biofuel blend B24 and subsequently expanded practical usage to B30. However, the company said there remains limited global experience with the long-term continuous use of B100.

“By collecting long-term operational data through this trial, NYK aims to accumulate valuable technical insights to support both the safe operation of vessels and the wider adoption of high-purity biofuels,” it said. 

 

Photo credit: NYK
Published: 3 June, 2026

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