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Argus Media: ECA, ETS to drive up demand for biofuel bunkers in Mediterranean

Demand for biofuels for bunkering in Mediterranean could be driven up in 2025 due to the region becoming an ECA and vessels in EU territorial waters to pay for 70% of their CO2 emissions.

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Demand for biofuels for bunkering in the Mediterranean could be driven up in 2025 by the region becoming a sulphur oxide Emission Control Area (ECA) and vessels in EU territorial waters having to pay for 70pc of their CO2 emissions.

26 April 2023

The International Maritime Organisation (IMO) starting 1 May 2025 will require that vessels traveling in the EU Mediterranean territorial waters burn marine fuel with sulphur content capped at 0.1pc, down from 0.5pc sulphur. Starting on 1 January 2025, the EU will require that ship owners traveling EU territorial waters, including the Mediterranean, pay for 70pc of their CO2 marine fuel emissions through its emissions trading system (ETS), up from 40pc in 2024.

The Mediterranean becoming an ECA is expected to increase demand for 0.1pc sulphur marine gasoil (MGO) and reduce demand for 0.5pc sulphur residual fuel oil. The Mediterranean 0.1pc sulphur ECA will commence 10 years after northern Europe’s.

On 1 January, 2015, the North Sea and the Baltic Sea ECAs, transitioned to 0.1pc sulphur marine fuels from 1.0pc sulphur fuel oil. As a result, in the port of Rotterdam, on the North Sea, the share of sales of 0.1pc sulphur MGO of total marine fuel sales rose to 16pc in 2015 from 6pc in 2014. The share of residual fuel oil of total bunker sales in Rotterdam dropped to 84pc in 2015 from 94pc in 2014.

But MGO emits nearly as much CO2 as residual fuel oil, and would not reduce ship owners’ CO2 bill. Biofuels can be carbon neutral if made by sustainable biomass and are also compliant with the ECA sulphur limit. In 2025, marine shipping companies could shift to burning biofuels in the Mediterranean provided that biofuel prices do not exceed the cost of MGO combined with CO2 cost.

Argus assessed MGO at $849/t average in March in the west Mediterranean hub of Gibraltar-Algeciras-Ceuta. Argus assessed EU-traded CO2 at $96/t in March. Burning 1t of MGO emits about 3.2t of CO2. Thus, at the current snapshot of time, biofuel below $1,156/t would be considered competitively priced compared to MGO.

Companies currently offering or planning to offer biofuels for bunkering in the Mediterranean include: Cepsa, Peninsula and Repsol in Spain, Galp in Portugal and Alpha Trading, Eni and Fratelli Cosulich in Italy.

There are no statistics available for total EU Mediterranean waters marine fuel demand. The ;latest total EU bunker demand statistics — which include Mediterranean, North Sea, Baltic Sea, Black Sea and Atlantic Ocean EU waters — were at 40.3mn t for 2021. This number excludes smaller vessels of less than 5,000 gross tonnes and UK territorial waters.

By Stefka Wechsler

 

Photo credit and source: Argus Media
Published: 2 May, 2023

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LNG Bunkering

PIL’s LNG dual-fuel boxship “Kota Elok” arrives in Singapore on maiden call

As the first of 13 new 13,000 TEU vessels joining its fleet, Kota Elok is equipped to operate on LNG and low-sulphur fuel oil that helps reduce our greenhouse gas emissions.

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PIL's LNG dual-fuel boxship “Kota Elok” arrives in Singapore on maiden call

Singapore-based Pacific International Lines Pte Ltd on Monday (20 July) said its first 13,000 TEU LNG dual-fuel container vessel, Kota Elok, recently made her maiden call to Singapore on 15 July.

As the first of 13 new 13,000 TEU vessels joining its fleet, Kota Elok is equipped to operate on liquefied natural gas (LNG) and low-sulphur fuel oil that helps reduce our greenhouse gas emissions. 

The vessel also incorporated energy-saving features and digital technologies to reduce fuel consumption and enhance operational performance, as well as a bow windshield to improve aerodynamics, contributing to improved fuel efficiency and lower emissions over the course of long-haul voyages.

“Following Singapore, Kota Elok will continue her voyage on our East Coast Service 1 (ES1) route to South America, calling at ports in Brazil, Uruguay, and Argentina before returning to Asia,” the company said in a social media post. 

Kota Elok also became PIL’s first vessel to receive Lloyd’s Register certification for compliance with the IACS UR E26 and UR E27 cyber security requirements.

Developed by the International Association of Classification Societies (IACS), UR E26 and UR E27 are mandatory cyber resilience requirements for newbuild vessels contracted from 1 July 2024. 

 

Photo credit: Pacific International Lines
Published: 21 July, 2026

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LNG Bunkering

CIMC SOE secures order for 12,000-cbm LNG bunkering vessel from Sinopec Clean Energy

Once operational, the vessel is expected to strengthen Sinopec’s domestic coastal LNG bunkering network and help address gaps in China’s alternative fuel bunkering infrastructure.

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CIMC SOE secures order for 12,000-cbm LNG bunkering vessel from Sinopec Clean Energy

China’s Nantong CIMC Sinopacific Offshore & Engineering Co., Ltd. (CIMC SOE) recently signed a contract with Sinopec (Beijing) Clean Energy Co., Ltd. to build a 12,000-cubic metre (m3) LNG bunkering vessel, according to Chinese maritime media.

The vessel is scheduled for delivery in 2028 and will support Sinopec’s efforts to expand its presence in the marine clean energy sector.

Once operational, the vessel is expected to strengthen Sinopec’s domestic coastal LNG bunkering network and help address gaps in China’s LNG bunkering infrastructure.

With this signing , CIMC Pacific Offshore Engineering’s LNG bunkering vessel orderbook is further strengthened, maintaining its leading position in the global market for small and medium-sized LNG bunkering vessels.

The contract also marked another milestone for CIMC SOE, which has seen a sharp increase in orders and business performance this year amid a surge in domestic LNG vessel demand.

 

Photo credit: Nantong CIMC Sinopacific Offshore & Engineering
Published: 21 July, 2026

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Nuclear

ABS awards AiP to Korean institute for SMR-powered container ship concept design

KRISO says AiP recognises the technical feasibility and safety of its concept design, marking an important milestone toward the development of next-generation nuclear-powered commercial ships.

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ABS awards AiP to Korean institute for SMR-powered container ship concept design

Korea Research Institute of Ships & Ocean Engineering (KRISO) on Thursday (16 July) received Approval in Principle (AiP) from the American Bureau of Shipping (ABS) for its concept design of a 15,000 TEU Small Modular Reactor (SMR)-powered container ship utilising Molten Salt Reactor (MSR) technology.

KRISO said the AiP recognises the technical feasibility and safety of its concept design, marking an important milestone toward the development of next-generation nuclear-powered commercial ships.

“This achievement demonstrates international recognition of KRISO’s technological capabilities in the rapidly evolving field of nuclear-powered shipping, supporting the transition toward low-carbon maritime transport,” it said. 

Building on this milestone, KRISO will continue advancing basic and detailed ship design, paving the way for future demonstration and commercialisation of SMR-powered vessels. 

Through continued R&D and international collaboration, KRISO remains committed to strengthening next-generation maritime technologies and contributing to the safe deployment of nuclear propulsion in the maritime industry.

 

Photo credit: Korea Research Institute of Ships & Ocean Engineering
Published: 21 July, 2026

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