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Argus Meda viewpoint: European marine biodiesel demand to firm

Marine biodiesel bunkering demand in Europe could rise in 2024 due to IMO’s first assignment of energy efficiency “grades” for vessels and the extension of the EU ETS.

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Hussein Al-Khalisy of global energy and commodity price reporting agency Argus Media on Wednesday (27 December) published a report on marine biodiesel bunkering demand in Europe:

Marine biodiesel bunkering demand in Europe could rise in 2024, as a result of the International Maritime Organisation’s (IMO) first assignment of energy efficiency “grades” for vessels and the extension of the EU’s Emissions Trading System to the shipping sector.

Market participants expects firmer marine biodiesel bunkering demand in the first half of 2024 on the back of the new regulations.

IMO’s CII regulations means that vessels will be graded from A to E in 2024, which will represent their operational energy efficiency in 2023. Bunkering marine biodiesel can enhance a vessel’s rating as it reduces the CO2 emissions from fuel consumption and allow non-compliant ships to avoid fines and increased refinancing costs.

In January 2024 the EU’s Emissions trading system (ETS) will cover CO2 emissions from large ships. Using a biofuel component in a marine biodiesel blend will have an emission factor of zero under the EU ETS scheme, making it a lucrative option for shipowners looking to minimise their exposure to EU ETS regulations.

The marine biodiesel market is tiny compared with the conventional marine fuels market, but demand has stayed steady on the year in 2023 at around 520,000t, triple the volumes sold in 2021, according to data from the Port of Rotterdam. This compares with about 6.77mn t of conventional fossil bunker fuels sold at the port in the first nine-months of this year.

Some participants reported that demand for marine biodiesel may firm further in 2025 as shipping firms will have to use ETS allowances covering 70pc of their reported emissions, while allowance availability tightens. The FuelEU maritime initiative which is set to start in 2025, could also support demand.

But others expects a more marginal rise in marine biodiesel consumption on the back of thinning biofuels subsidy tickets values for the shipping sector in Amsterdam and Rotterdam.

New markets

An increasing number of suppliers in the northwest European bunkering hub of Amsterdam-Rotterdam-Antwerp (ARA) have been offering marine biodiesel blends, with a spot market emerging there and also the west Mediterranean.

This prompted the indexation of northwest European calculated biodiesel and very-low sulphur fuel oil (VLSFO) prices and the launch of the first market-led marine biodiesel blend price in the west Mediterranean.

B24 dob Algeciras-Gibraltar is a spot price assessment launched on 1 November, comprising a blend of 24pc used cooking oil methyl ester (Ucome) and 76pc very low sulphur fuel oil (VLSFO). It was assessed at an average of $779.31/t in November and around $763/t in December so far, or an average November premium of $168.30/t and December premium of around $182/t to conventional dob VLSFO in the west Mediterranean bunkering hub of Gibraltar-Algeciras-Ceuta. It was also marked at a premium of about 2.25pc ($17/t) to Argus B30 (Ucome) fob ARA, and a 16.94pc ($112.69/t) premium to the B30 advanced Fame 0°C CFPP dob ARA in November.

Demand for northwest European marine biodiesel blends slipped in November on the back of slower seasonal demand and price uncertainty in the underlying conventional VLSFO market in ARA. Meanwhile, trading for Ucome thinned in recent weeks as demand shifts towards rapeseed oil which has better winter properties. Market participants reported an uptick in demand for the B30 advanced fatty acid methyl ester (Fame) 0°C CFPP blend towards the close of the year on the back of the announcement from the Dutch government reducing the subsidy multiplier for biofuels in maritime shipping to 0.4 from 2024.

Photo credit and source: Argus Media
Published: 27 December 2023

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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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Ammonia

AM Green plans to build green ammonia plant at Indian port

Initiative also includes development of green ammonia handling, storage and bunkering infrastructure, pilot bunkering operations, safety procedures and training programmes, says VOC Port Authority.

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VO Chidambaranar (VOC) Port Authority on Friday (29 May) said it has signed a Memorandum of Understanding (MoU) with India’s ammonia producer AM Green Ammonia to collaborate in the development of a green ammonia production plant.

The plant will have a capacity of one million tonnes per annum (MTPA) at Tuticorin.

The initiative also includes development of green ammonia handling, storage and bunkering infrastructure, pilot bunkering operations, safety procedures and training programmes. 

The project is expected to support the development of green fuel corridors connecting VOC Port with major ports in Europe and Asia, thereby strengthening India’s position in the global green fuels value chain.

VOC Port also signed a Memorandum of Understanding (MoU) with Bureau Veritas (India) Pvt. Ltd., to collaborate on Green Port certification, emissions accounting, ESG reporting, safety validation, development of green bunkering practices, and establishment of a Centre of Excellence for green fuels and sustainability.

The port also plans for an upcoming 750 m³ green methanol bunkering facility.

 

Photo credit: Naveed Ahmed on Unsplash
Published: 3 June, 2026

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