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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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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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