Biofuel
Argus Media: IMO incentive to shape bio-bunker choices
IMO proposal for ship owners who exceed emissions reduction targets to earn surplus credits will play a key role in biofuel bunkering options going forward.
An International Maritime Organization (IMO) proposal for ship owners who exceed emissions reduction targets to earn surplus credits will play a key role in biofuel bunkering options going forward.
22 April 2025
The price of these credits will help determine whether B30 or B100 becomes the preferred bio-bunker fuel for vessels not powered by LNG or methanol. It will also influence whether biofuel adoption is accelerated or delayed beyond 2032.
At the conclusion of its meeting earlier this month the IMO proposed a dual-incentive mechanism to curb marine GHG emissions starting in 2028. The system combines penalties for non-compliance with financial incentives for over-compliance, aiming to shift ship owner behavior through both “stick” and “carrot” measures. As the “carrot”, ship owners whose emissions fall below the IMO’s stricter compliance target will receive surplus credits, which can be traded on the open market. The “stick” will introduce a two-tier penalty system. If emissions fall between the base and direct GHG emissions tiers, vessel operators will pay a fixed penalty of $100/t CO2-equivalent. Ship owners whose emissions exceed the looser, tier 2, base target will incur a penalty of $380/t CO2e. Both tiers tighten annually through 2035.
The overcompliance credits will be traded on the open market. It is unlikely that they will exceed the cost of the tier 2 penalty of $380/t CO2e. Argus modeled two surplus credit price scenarios — $70/t and $250/t CO2e — to assess their impact on bunker fuel economics. Assessments from 10-17 April showed Singapore very low-sulphur fuel oil (VLSFO) at $481/t, Singapore B30 at $740/t, and Chinese used cooking oil methyl ester (Ucome), or B100, at $1,143/t (see charts).
If the outright prices remain flat, in both scenarios, VLSFO would incur tier 1 and tier 2 penalties, raising its effective cost to around $563/t in 2028. B30 in both scenarios would receive credits putting its price at $653/t and $715/t respectively. In the high surplus credit scenario, B100 would earn roughly $580/t in credits, bringing its net cost to about $563/t, on par with VLSFO, and more competitive than B30. In the low surplus credit scenario, B100 would earn just $162/t in credits, lowering its cost to approximately $980/t, well above VLSFO.
At these spot prices, and $250/t CO2e surplus credit, B100 would remain the cheapest fuel option through 2035. At $70/t CO2e surplus credit, B30 becomes cost-competitive with VLSFO only after 2032. Ultimately, the market value of IMO over-compliance credits will be a major factor in determining the timing and extent of global biofuel adoption in the marine sector.
By Stefka Wechsler
Scenario 1, $70/t surplus credit $/t
Scenario 2, $250/t surplus credit $/t
Photo credit and source: Argus Media
Published: 22 April, 2025
Alternative Fuels
ENGINE on Fuel Switch Snapshot: Conventional fuels slump in major ports
HSFO becomes cheaper than B100 in Rotterdam; Singapore’s B100 flips to premium over LSMGO; Rotterdam LBM discounts to LNG widen.
Once a week, bunker intelligence platform ENGINE will publish a snapshot of alternative and conventional bunker fuel prices in the world’s two biggest bunkering hubs. The following is the latest snapshot:
- HSFO becomes cheaper than B100 in Rotterdam
- Singapore’s B100 flips to premium over LSMGO
- Rotterdam LBM discounts to LNG widen
Brent’s price has slumped by $14.73/bbl ($108/mt) on the week after US President Donald Trump announced a preliminary peace deal with Iran yesterday. The sharp decline has dragged conventional fuel prices lower in both Rotterdam and Singapore.
Rotterdam’s B100 has shifted to a $14/mt premium over HSFO, from a $1/mt discount seen a week ago.
B100 discounts to VLSFO and LSMGO have narrowed by $54/mt and $89/mt to $50/mt and $343/mt, respectively.
In Singapore, B100 has shifted from a $79/mt discount to LSMGO to a $16/mt premium.
Rotterdam’s liquefied biomethane (LBM) discounts to its LSMGO have narrowed by $21-28/mt in the past week, to $639-844/mt, depending on the LNG engine type.
Liquid fuels
Rotterdam’s HSFO (-$71/mt) and VLSFO (-$110/mt) prices have to some extent tracked a $14.73/bbl ($108/mt) drop in front-month ICE Brent futures. Its LSMGO benchmark has fallen by $145/mt, exceeding a $125/mt decline in front-month ICE low sulphur gasoil futures.
The port’s B100 price has dropped by $56/mt over the past week. Dutch ZRE A ticket prices have edged down by €2/mtCO2e to €108/mtCO2e.
Singapore’s conventional fuel prices have fallen by $112-167/mt, and its B100 price by $72/mt.
Liquid gases
Rotterdam’s LNG bunker prices have dropped by $77-83/mt in the past week, largely tracking a 12% decline in the front-month Dutch TTF Natural Gas contract.
Its LBM prices have fallen by $117-124/mt. LBM discounts to LNG have widened by $40-41/mt to $455-462/mt in the past week.
Singapore’s LNG prices have risen by $13-16/mt. The rises came amid spot market demand from India for fertiliser plants, power generation and households, noted ANZ Bank’s Daniel Hynes. Japan and South Korea tend to import more gas for power generation during their summer months, and China has been active in the market, Hynes said.
By Konica Bhatt
Photo credit and source: ENGINE
Published: 16 June, 2026
Bunker Fuel
Singapore: Bunker fuel sales drops by 6.8% on year in May 2026
4.55 million mt of various marine fuel grades were delivered at the world’s largest bunkering port in May, down from 4.88 million mt recorded during the similar month in 2025, according to MPA data.
Sales of marine fuel at Singapore port dropped by 6.8% on year in May 2026, according to data from the Maritime and Port Authority of Singapore (MPA).
In total, 4.55 million metric tonnes (mt) (exact 4,548,000 mt) of various marine fuel grades were delivered at the world’s largest bunkering port in May, down from 4.88 million mt (4,878,100 mt) recorded during the similar month in 2025.
Deliveries of marine fuel oil, low sulphur fuel oil, ultra low sulphur fuel oil, marine gas oil and marine diesel oil in May (against on year) recorded respectively 1.79 million mt (-5.3% from 1.89 million mt), 2.29 million mt (-6.5% from 2.45 million mt), zero (-100% from 1,200 mt), 600 (35.2% from 1,700 mt) and zero (from zero).
Bio-blended variants of marine fuel oil, low sulphur fuel oil, ultra low sulphur fuel oil, marine gas oil and marine diesel oil in May, (against on year) recorded respectively 11,600 mt (-71.6% from 40,900 mt), 36,400 mt (-62.1% from 96,100 mt), zero (from zero), zero (from zero) and zero (from zero). B100 biofuel bunkers, introduced in February last year, recorded 12,800 mt (+573.7% from 1,900 mt).
LNG and methanol sales were 70,300 mt (+56.2% from 45,000 mt) and zero (from zero) respectively. There were no recorded sales of ammonia for the month and so far since 2025.
Photo credit: Maritime and Port Authority of Singapore
Published: 15 June, 2026
Biofuel
Bunker brokerage Norwegian Energy Trading renews ISCC certification for biofuel trading
‘Our biofuel volumes have been growing steadily, and we’re committed to keeping pace with where the market is genuinely heading — not where it’s announced to be heading,’ says firm.
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