Ahead of Argus Asia B24 Forum, Manifold Times interviewed Mahua Chakravarty, Head of Marine Fuels Pricing (Asia) of independent global energy and commodity market intelligence provider Argus Media; she explains the growing prominence of B24 bunker fuel in the marine sector and believes it is imperative for the bunkering sector to deepen its knowledge on it:

MT: Why is it important for the bunkering sector to know more about the B24 bunker fuel market?

B24 has emerged as the first alternative marine fuel that allows ship-owners and charterers a drop-in fuel option, and make greenhouse gas (GHG) savings, for their voyages into EU and territorial waters.

It has proved to be the most practical solution for ship-owners that eliminates costly retrofitting charges. The easy availability of used cooking oil methyl ester (UCOME) as a blendstock from China and southeast Asia, also adds to its overall attractiveness as an alternative fuel.

B24 consumption in the port of Singapore recorded multi-fold jumps to touch 518,000t in 2023 as ship-owners fuelled for trials in preparation for the implementation of EU-led mandates like the EU Emissions Trading Scheme (ETS) and the Carbon Intensity Index (CII) rating. In 2024, B24 demand has continued to grow with 377,800t of consumption seen up to August, according to statistics from the Maritime and Port Authority of Singapore (MPA).

As we advance into 2025, the need to understand how B24 matures in terms of market fundamentals, pricing and dynamics will be a key indicator for the marine sector. Being the first generation of new marine fuels, B24 has shown the way that biofuel blends can provide a solution for ship-owners/charterers to meet compliance mandates set by the EU and IMO.

MT: Why has Argus developed its own B24 Singapore price index? What's so special about it and why should the industry adopt it as a benchmark?

Argus was the first to launch its spot B24 delivered on board (DOB) Singapore assessment in January 2023, thus introducing price discovery for this market at its point of inception. The past 1.5 years of daily price assessments of B24, using a robust market survey approach, has built Argus’ understanding of this market from the start.

We have seen the growth of liquidity and the quest among refiners, traders, ship-owners to find pricing solutions for a nascent market. We have been at the forefront of capturing spot liquidity growth and in assessing prices for this market.

This index is now considered a key price assessment by key refiners, traders, ship-owners and other stakeholders in the market.

MT: What takeaways can each segment of the bunkering sector such as bunker buyers, bunker traders, and shipowners receive from the upcoming Argus B24 forum?

The Argus B24 Asia Forum is aimed at showcasing some of these learnings by a global team that covers key markets like Singapore, China and Europe. Our global team will present their insights on the key trends driving demand for marine biodiesel globally.

As the marine sector marches onwards with the bunkering of higher biofuel blends, this forum will allow the audience to reflect on the key factors that have driven the marine biodiesel sector. It will provide insights to make better decisions about infrastructure, pricing, feedstock-related issues and what blends are likely to be prevalent in the coming year.

We will be hosting a panel discussion at this forum that will include key players driving the marine biodiesel space in Singapore and other regions.

The Argus Asia B24 Forum will be held in The Village Hotel (The Events Centre by Far East Hospitality), Sentosa, Singapore (Google Maps) on 8 October between 4.00pm to 7.00pm Singapore Time.

Participants are encouraged to register for the free event via the custom link here.

Related: Argus Media organises free admission ‘Argus Asia B24 Forum’ for bunkering sector

Photo credit: Argus Media
Published: 4 October 2024

The UK’s National Oceanography Centre (NOC) recently said it is conducting a trial on the use of a fossil-free marine diesel to fuel the Royal Research Ships (RRS) James Cook and Discovery.

Use of hydrotreated vegetable oil (HVO), made from used vegetable oils and fats and non-food crops, is able to significantly reduce net CO2 vessel emissions, compared to conventional diesel fuel.

The trial is funded by the UK’s Natural Environment Research Council (NERC), which owns the two vessels, in support of a UK Research and Innovation (UKRI) goal to achieve net zero emission operations by 2040.

HVO can be used as a “drop-in” replacement in marine engines and because it’s made from already used products and non-food crops, it’s life-cycle CO2 emissions are much lower than fossil fuel.

Kevin Williams, Head of Research Ships Engineering at NOC, said: “As a research organisation, NOC is focused on understanding and protecting our ocean. Reducing our own environmental footprint is a key part of that and the carbon emissions from our vessels is a major part of that.”

During the trial, HVO is replacing the low sulphur marine gas oil (LSMGO) NOC normally uses. HVO is one of the more stable biofuels, which means it’s suitable for the different conditions NOC vessels operate in, from high temperature regions to the Arctic.

However, William noted there are some challenges around its use, such as cost and availability, especially in the remote places NOC operates.

The HVO trial is part of wider emissions reduction work at NOC. For the vessels, this includes assessing the use of batteries onboard, to reduce the use of the engines during scientific operations, and a focus on marine operations planning, to reduce transit time and more efficient routing based on weather.

Photo credit: National Oceanography Centre
Published: 4 October, 2024 

Arkas Bunker on Tuesday (1 October) said it has started to supply biofuel to the maritime industry for the first time in Türkiye. 

With the bunkering of Arkas Line's container vessel, Matilde A, a marine fuel containing environmentally friendly bio-components, entirely produced from waste in Türkiye, has been used for the first time in Türkiye. 

The firm said the blended marine fuel, named "Bio24F," significantly reduces carbon emissions without modifying the vessel's fuel system.

As the first bunkering company in Türkiye to obtain the International  Sustainability and Carbon  Certification (ISCC), Arkas Bunker stated it has reached yet another milestone by carrying out the Bio24F bunkering of Arkas Line's vessel at the port of Marport.

Seckin Gul, General Manager of Arkas Bunker, said: “As Arkas Bunker, we have been working for many years on solutions that comply with international regulations and reduce greenhouse gas emissions from vessels. Since the main source of these emissions is the fuel they use, we have focused on sustainable marine fuels.”

“About three years ago, we started research and development on bio-components by taking a closer look at marine biofuels. In February, we achieved our goal for 2024 by obtaining the ISCC certification, becoming Türkiye’s first ISCC-certified bunker supplier.”

“Now, we are marking another first in Türkiye’s maritime industry. Our ISCC-certified product, ‘Bio24F,’ will significantly reduce greenhouse gas emissions from vessels, making it much easier for shipowners to achieve their sustainability goals. As Arkas, we continue to develop new products with our expert technical team, using our experience as the owner and operator of Türkiye’s largest container vessel fleet.”

Arkas Line CEO Can Atalay, said, "Türkiye’s first biofuel, Bio24F, was supplied by Arkas Bunker to an Arkas Line vessel for the first time. Our trials have shown that we can reduce carbon emissions without needing any modifications to our vessel’s fuel system.”

“This will help us comply with regulations and bring us closer to our sustainability goals.”

Arkas Bunker added Bio24F represents a strategic advancement in marine fuel technology. It is made by blending 24% ISCC-certified used cooking oil (UCO) with 76% fuel oil (FO).

The UCO component of the biofuel is derived from processing waste collected from restaurants and food facilities. The bio-component in Bio24F is valuable because it can significantly reduce carbon emissions compared to conventional marine fuels.

The fuel oil used in Bio24F is a refined petroleum product that meets International Maritime Organization (IMO) regulations. It has a lower sulphur content than traditional high-sulphur fuels, which helps reduce sulphur oxide emissions. Biofuels, which can be blended with fossil fuels and are made from biological sources, aim to play a significant role in reducing emissions from vessels.

Photo credit: Arkas Bunker
Published: 2 October, 2024