Biofuel

Argus Media: Canaries’ bio-marine fuel demand hit by ETS exemptions

Cepsa has delayed plans to supply marine biodiesel blends in Canary Islands as increased demand for conventional bunker fuels and EU regulatory exemptions weigh on market fundamentals for the blended products.

Published

12 months ago

July 2, 2024

Admin

Spanish energy firm Cepsa has delayed plans to supply marine biodiesel blends in the Canary Islands as increased demand for conventional bunker fuels and EU regulatory exemptions weigh on market fundamentals for the blended products.

28 June 2024

Cepsa’s international marine fuels sales manager, Francisco Diaz Castro, told attendees at the Maritime Week Las Palmas conference last week that the firm remains committed to supplying marine biodiesel in the Canary Islands but is delaying it in response to a sharp rise in conventional bunker fuel demand in recent months, underpinned by vessels re-routing around the southern tip of Africa to avoid the risk of Houthi attacks in in the Red Sea.

Vessels have been stocking up on bunker fuels before and after sailing around Africa’s Cape of Good Hope to avoid stopping along the way. Latest data from the Spanish transport ministry show sales of conventional bunker fuel out of the Canary Islands last month increased by 3pc compared with April and by 41pc on the may last year (see table). This demand growth has pushed suppliers to retain barge availability for conventional bunker fuels, reducing capacity to supply marine biodiesel blends.

Market participants told Argus that another reason marine biodiesel demand in the Canary Islands has not picked up is EU regulatory exemptions for vessels sailing between the islands and mainland Spain. According to article 12 (3b) of the EU’s Emissions Trading System (ETS) directive, “an obligation to surrender allowances shall not arise in respect of emissions released until 31 December 2030 from voyages between a port located in an outermost region of a member state and a port located in the same member state, including voyages between ports within an outermost region and voyages between ports in the outermost regions of the same member state, and from the activities, within a port, of such ships in relation to such voyages.”

Argus understands that this exemption applies to all vessels covered under the scope of the EU ETS, but would not apply if the vessel is sailing from an outermost region, such as the Canary Islands, to a different EU member nation, for example the Netherlands.

A similar exemption for FuelEU Maritime regulations may be applicable as well, subject to member states asking for the exemption of the specific ports and routes for the vessels. Such an exemption could apply until 2029. Argus understands that requests from member states for this exemption will be published in the coming months.

An exemption from FuelEU Maritime regulations could also be applied to routes connecting islands with a population under 200,000 people. This specific exemption would therefore not apply to Tenerife and Gran Canaria but may apply to other parts of the Canary Islands with smaller populations.

By Hussein Al-Khalisy and Dafydd ab Iago

Photo credit and source: Argus Media
Published: 2 July, 2024

Biofuel

Chimbusco and SPG complete first biofuel bunkering operation in Northern China

Chimbusco’s “DA YUAN YOU 8” tanker refuelled the “HMM VANCOUVER” with 1,300 metric tonnes of B24 biofuel at Qingdao Port.

Published

3 days ago

June 20, 2025

Admin

Chimbusco and SPG achieves first biofuel bunkering operation in Northern China

China Marine Bunker (PetroChina) Co Ltd (Chimbusco) and Shandong Port Group (SPG) recently said they successfully completed the first B24 biofuel bunkering operation in Northern China on 14 June.

Chimbusco’s “DA YUAN YOU 8 ” tanker refuelled the “HMM VANCOUVER” with 1,300 metric tonnes (mt) of B24 biofuel at Qingdao Port.

Chimbusco said the successful bunkering operation not only marks a milestone in the bonded biofuel bunkering business for international voyage vessels in northern China but also represents a critical milestone in the green and low-carbon transformation of the shipping industry around the Bohai Sea and throughout northern China.

B24 biofuel is a blend of 24% waste cooking oil and 76% high-sulphur fuel oil. Authoritatively certified, the company said this fuel can significantly reduce carbon emissions from vessel operations by up to 20%, providing shipowners with an efficient and convenient low-carbon solution to comply with increasingly stringent International Maritime Organization (IMO) emission reduction regulations.

Since the beginning of this year, Chimbusco said it has achieved top records of bunkering volumes in the green fuel sector. From the first successful operation at Ningbo-Zhoushan Port in eastern China to subsequent bunkering operations in Shenzhen, Xiamen, and other major ports across the country, the company has further consolidated its regular supply capabilities.

During this in-depth cooperation with SPG’s Qingdao Port, Chimbusco’s “Green Energy Label” made its debut at the operation site.

“This further confirms that Chimbusco is deploying green fuel bunkering services to help Chinese ports accelerate the construction of a maritime green energy supply network,” the company said.

Photo credit: Shandong Port Group
Published: 20 June, 2025

Biofuel

NYK Trading-chartered bunker barge operates on bio bunker fuel since March

Company says it has been chartering a biofuel-powered bunker barge “No. 28 Seihosan Maru”, operated by Asahi Tanker, in Tokyo Bay since March.

Published

5 days ago

June 18, 2025

Admin

NYK Trading-chartered bunker barge operates on bio bunker fuel since March

NYK Trading on Monday (16 June) said it has been chartering a biofuel-powered bunker barge, No. 28 Seihosan Maru, operated by Asahi Tanker in Tokyo Bay since March.

This marks the first actual operation of a coastal ship operated by Asahi Tanker.

The biofuel that the vessel has begun using is a mixture of conventional marine fuel oil A and fatty acid methyl ester (FAME) made from waste edible oil. The FAME provided by NYK Trading uses high-purity biodiesel fuel (ReESEL).

NYK Trading said it will continue to contribute to the accelerating trend toward decarbonisation and reduce CO2 emissions by promoting the use of biofuel and building a supply system.

Photo credit: NYK Trading
Published: 18 June, 2025

Digital platform

Ofiniti eBDN solution chosen by FincoEnergies for marine biofuel ops in ARA region

Development takes place on the back of complex logistics and opaque operational processes experienced by the marine (bio)fuel market; which Ofiniti’s FuelBoss eBDN solution seeks to simplify.

Published

5 days ago

June 17, 2025

Admin

Rotterdam-based FincoEnergies, an independent, leading supplier of (bio)fuels and decarbonisation services for the transport sector, will be adopting Ofiniti’s FuelBoss eBDN technology, with operational support from VT Group.

The development takes place on the back of complex logistics and opaque operational processes experienced by the marine (bio)fuel market; which Ofiniti’s FuelBoss eBDN solution seeks to simplify.

“Schedules are becoming increasingly tighter as demand for sustainable biofuels grows,” explains Leon Arets, Trading & Operations Director at FincoEnergies.

“We’re adopting a platform that enhances structure and responsiveness. This digital leap allows us to not only scale efficiently but also deliver greater transparency and operational excellence to our clients.”

A spin-off from global assurance and risk management leader DNV, Ofiniti brings together deep industry know-how with cutting-edge technology. Its flagship platform, FuelBoss, is designed to replace cumbersome manual processes with streamlined digital workflows that boost efficiency and data reliability.

“Our work with LNG suppliers laid the groundwork,” notes Oliver Brix Sparsø, Global Director of Sales at Ofiniti. “But this collaboration with FincoEnergies and VT Group marks the first large-scale commitment to digital delivery workflows for biofuels. It’s a turning point for the region.”

FincoEnergies’ mission, Decarbonising the transport industry together, is grounded in collaboration and innovation. The partnership with Ofiniti and VT Group exemplifies this spirit, combining technological leadership with operational expertise.

“As operators, we continuously look for ways to improve life on board and support our partners,” adds Wouter van Reenen, Business Development Manager at VT Group. “FuelBoss is a strong fit for our operations and those of our chartering clients.”