Biofuel
Argus Media: EU–IMO overlap could incentivise biofuel demand
EU and IMO dual efforts to cut shipping emissions could lead to stacked fines and higher fuel costs for ships visiting EU ports, but it could also sharpen incentives to use biodiesel blends.
The EU and the International Maritime Organization’s (IMO) dual efforts to cut shipping emissions could lead to stacked fines and higher fuel costs for ships visiting EU ports, but it could also sharpen incentives to use biodiesel blends.
11 June 2025
The EU’s FuelEU Maritime and emissions trading system (ETS) is already in force within EU territory, while the IMO’s global greenhouse gas (GHG) penalty system takes effect in 2028 and applies to EU waters, among other regions. Without coordination, ships operating in and out of EU waters that exceed both sets of limits could pay under both systems.
FuelEU targets vessel pools, while IMO rules will be applied on an individual vessel basis. Both cover lifecycle GHG emissions, but IMO’s thresholds are stricter (see chart). FuelEU penalties are currently €2,400/t of VLSFO energy equivalent ($2,708/t in May). From 2028, IMO penalties will range from $100/t CO₂ e for breaching the direct GHG limit to $380/t for surpassing the base threshold. On top of this, the EU ETS will require shipowners to pay for 100pc of CO₂ emissions from combustion in EU waters starting in 2026.
In May 2025, Rotterdam high-sulphur fuel oil (HSFO) averaged $415/t and ETS carbon credits averaged $79/t. Since VLSFO emits 3.114t of CO₂ per tonne burned, ETS alone would add $246/t for 100pc CO₂ charge. If a vessel also breaches FuelEU and IMO limits, it would face another $71/t and $82/t, respectively, bringing the total penalty burden to $399/t and the effective HSFO price to $814/t in 2028 (see chart). A comparable ship operating only in Asia would pay $497/t, factoring in IMO penalties alone.
In May,northwest Europe B30 biodiesel — a used cooking oil methyl ester and very low-sulphur fuel oil blend — averaged $790/t. Considering a $173/t CO₂ EU ETS emissions cost that covers 100pc of emissions from combustion, and $25/t IMO overcompliance credit in 2028, the B30 price would be $938/t, a premium to HSFO. But by 2030, the combined effect of IMO and EU penalties plus overcompliance credits would flip B30 to a discount for EU-bound ships. Outside EU waters, IMO alone would not tip the balance.
The overlapping rules are likely to prompt shipowners to concentrate low-carbon fuel use in EU waters, shifting the bulk of global shipping emissions reductions to the North Sea, Baltic Sea, Mediterranean, and northeast Atlantic, leaving the Pacific, Indian, Arctic, and western Atlantic regions with less progress.
“The [European] Commission will assess the new global measure to see how it interacts with current EU maritime-related regulations, maintaining environmental integrity while avoiding significant double burden”, it said in a statement in April. The EU has two and a half years until 2028 to make a decision.
By Stefka Wechsler
FuelEU and IMO well-to-wake GHG Intensity gCO2e/MJ
NW Europe bunkers with IMO and EU penalties $/t
Photo credit and source: Argus Media
Published: 11 June, 2025
Financial Result
KPI OceanConnect pre-tax earnings dive 55% for FY2024/2025
Firm reported EBT of USD 9 million in FY 2024/2025, falling from USD 20 million in FY 2023/2024, due to investments in strategic initiatives and persistent downward pressure on margins, amongst others.
Bunker Fuel
Port of Rotterdam publishes bunker fuel sales data for Q2 2025
Port data showed 200,662 m3 of liquefied natural gas (LNG) being delivered as a marine fuel in Q2 2025, down by 17.4% from 242,931 m3 in Q2 2024.
Bunker Fuel
Singapore: Bunker fuel sales soar by 7.5% on year in June 2025
4.59 million mt of various marine fuel grades were delivered at the world’s largest bunkering port in June, up from 4.27 million mt recorded during the similar month in 2024, according to MPA.
Sales of marine fuel at Singapore port increased by 7.5% on year in June 2025, according to Maritime and Port Authority of Singapore (MPA) data.
In total, 4.59 million metric tonnes (mt) (exact 4,594,700 mt) of various marine fuel grades were delivered at the world’s largest bunkering port in June, up from 4.27 million mt (4,274,900 mt) recorded during the similar month in 2024.
Deliveries of marine fuel oil, low sulphur fuel oil, ultra low sulphur fuel oil, marine gas oil and marine diesel oil in June (against on year) recorded respectively 1.70 million mt (+8.6% from 1.56 million mt), 2.31 million mt (-7.2% from 2.33 million mt), 1,900 mt (from zero), 4,500 mt (-88% from 8,000 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 June (against on year) recorded respectively 38,800 mt (+671.7% from 2,500 mt), 114,300 mt (+97.9% from 45,400 mt), zero (from zero), zero (from zero) and zero (from zero). B100 biofuel bunkers, introduced in February this year, recorded 1,000 mt of deliveries in June.
LNG and methanol sales were respectively 55,400 mt (-7.8% from 51,700) and zero (from zero mt). There were no recorded sales of ammonia for the month and so far in 2025.
Related: Singapore: Bunker sales volume raises to year record high of 4.88 million mt in May
Related: Singapore: Bunker fuel sales increase by 4% on year in April 2025
Related: Singapore: Bunker fuel sales increase by 0.5% on year in March 2025
Related: Singapore: Bunker fuel sales down by 8.1% on year in February 2025
Related: Singapore: Bunker fuel sales down by 9.1% on year in January 2025
A complete series of articles on Singapore bunker volumes reported by Manifold Times tracked since 2018 can be found via the link here.
Photo credit: Maritime and Port Authority of Singapore
Published: 15 July 2025
OUR INDUSTRY PARTNERS
China: Chimbusco completes bunkering op with domestically produced green methanol
Shanghai Electric starts producing first batch green methanol bunker fuel with new plant
Singapore-based Seatrium secures USD 400 mil sustainability-linked revolving credit facility
Bureau Veritas to classify world’s first 5,000 m3 ammonia bunkering vessel
Verde Marine Energy unveils latest barge to support VLSFO bunker fuel supply in ARA
IMO holds course to equip new generation of trainers for green bunker fuels transition
ENGINE: Europe & Africa Bunker Fuel Availability Outlook (16 July 2025)
DNV: Maritime in APAC undergoes ‘transformative change’ towards growth, sustainability
Shell MGO bunker heist: Co-conspirator receives 302-month jail sentence
Trafigura subsidiary’s employee named among suspects in Pertamina corruption case
Singapore: Pinnacle Marine’s first B100 fuelled utility boat starts 1,000-hour research trial
Hanwha Ocean selected to build South Korea’s LNG dual-fuel research icebreaker
Malaysia: MMEA detains tanker transporting 62,000 litres of diesel off Port Klang
Singapore: Sea Oil Petroleum receives ISCC EU certification, mulls increasing product portfolio
-
Interview2 weeks agoDNV: Maritime in APAC undergoes ‘transformative change’ towards growth, sustainability
-
Legal1 week agoShell MGO bunker heist: Co-conspirator receives 302-month jail sentence
-
Legal2 days agoTrafigura subsidiary’s employee named among suspects in Pertamina corruption case
-
Newbuilding1 week agoSingapore: Pinnacle Marine’s first B100 fuelled utility boat starts 1,000-hour research trial
-
LNG Bunkering2 weeks agoHanwha Ocean selected to build South Korea’s LNG dual-fuel research icebreaker
-
Vessel Arrest2 weeks agoMalaysia: MMEA detains tanker transporting 62,000 litres of diesel off Port Klang
-
Biofuel1 week agoSingapore: Sea Oil Petroleum receives ISCC EU certification, mulls increasing product portfolio
-
Bunker Fuel Availability2 weeks agoENGINE: Americas Bunker Fuel Availability Outlook (3 July 2025)