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Argus Media: Northwest Europe biofuel bunker demand seen steady in 2024

Demand for biofuels for bunkering in northwest Europe could remain steady near current price levels in 2024, even with EU set to begin charging shipowners for 40% of their CO2 emissions beginning 2024.

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Demand for biofuels for bunkering in northwest Europe could remain steady near current price levels in 2024, even with the EU set to begin charging shipowners for 40pc of their CO2 emissions.

30 August 2023

Ships traveling in EU territorial waters will have to pay for 40pc of their CO2-equivalent emissions beginning in 2024. Prices of biofuels for bunkering remain at a premium to conventional marine fuel — very low-sulphur fuel oil (VLSFO) — even with the added cost of CO2. B30, a blend of advanced fatty acid methyl ester (Fame) and VLSFO, and B30, a blend of used cooking oil methyl esters (Ucome) and VLSFO, were pegged at $191/t and $291/t, respectively, premiums to the VLSFO average in August, Argus data showed. EU-traded CO2 averaged at $92.5/t. With the added 40pc emissions CO2 cost, the premium was pegged at $156/t for advanced Fame B30 blend and at $256/t for Ucome B30 blend (see chart).

Container shipping companies — including Maersk, Hapag-Lloyd, Ocean Network Express, CMA-CGM, Matson and Evergreen — have pledged net zero emissions by 2050. They have been actively exploring the use of biofuels and passing the extra cost to their customers in the form of higher freight rates. Their customers represent some of the largest retailers in the world, including Amazon, Ikea, Michelin, Patagonia, and Unilever, among others. But the number of container ship companies’ customers able and willing to pay more for cleaner freight might have peaked.

Beyond container shipping companies, bulk carriers and tanker owners are unlikely to embrace biofuels for bunkering on a larger scale just yet. Their customers and shareholders are not as environmentally driven.

Biofuel blends for sale as marine fuel accounted for 6.9pc of Rotterdam’s marine fuel demand in the second quarter of 2023, port of Rotterdam data showed. Their share of Rotterdam bunker demand has ranged from 2.0-9.3pc from the first quarter of 2021 to the first quarter of 2023. In 2024, their share of demand might not surpass 10pc, if northwest Europe Fame and Ucome prices remain steady or increase relative to VLSFO.

Another factor that could keep biofuels for bunker demand steady are Netherlands biotickets for advanced Fame for bunkering. The tickets, issued by the Dutch government, shave off about 40-60pc of the outright price of advanced Fame.

The use of Netherlands biotickets for bunkering are revisited by the government every year. Next year, the government could reduce the number of biotickets for bunkering or scrap them altogether.

By Stefka Wechsler

Argus Media: Northwest Europe biofuel bunker demand seen steady in 2024

ARA B30 less VLSFO plus 40pc CO2 cost $/t

 

Photo credit and source: Argus Media
Published: 4 September, 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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