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Argus Media: Singapore B24 bunker prices decline since 31 Jan on Ucome oversupply

B24 biofuel bunker prices in Singapore have weakened since 31 January, relative to VLSFO, due to huge supply of used-cooking oil methyl ester (Ucome), the blend’s main biofuel component.

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B24 biofuel bunker prices in Singapore have weakened since 31 January, relative to very-low sulphur fuel oil (VLSFO), because of abundant used-cooking oil methyl ester (Ucome) supply.

30 March 2023

Ucome is the blend's main biofuel component. The premium of B24 to delivered VLSFO bunkers in 

Singapore was assessed at $285.84/t on 31 January — the day Argus launched price assessments — and softened to an average of $260.79/t in February, according to Argus data. The premium has weakened further to an average of $229.76/t over 1-29 March.

This is largely because of plentiful Ucome supplies from China, the main import source for Singapore's B24 blend. China has been unable to export more to Europe, as the latter has been oversupplied for a while, said market sources.

Over-blending in the European road transport sector in the second half of last year had already squashed demand for Chinese Ucome. Traders were then taken aback when Chinese customs data showed year-on-year biodiesel exports more than double in the first two months of 2023 to 455,000t, with an all-time monthly high of 263,000t in January.

Almost all of these volumes were flowing to Europe and look set to add to already ample supplies of product that are double-counted towards European renewable transport fuel mandates — of which Ucome is one. This has sent Chinese prices plummeting by $355/t since 20 January to $1,030/t fob by 23 March, the lowest level since December 2020.

But there may be signs the market has bottomed out as prices recovered to $1,125/t fob China on 29 March. Firstly, Ucome demand traditionally picks up towards summer, with its higher cold filter plugging point properties making it more ideal for warmer weather use on the road. In addition, European prices are hovering around more than two-year lows, closing the arbitrage from Asia and leading several producers on both sides to temporarily slow production or shut, rather than operate at a loss, which should go some way towards rebalancing the market over the next few weeks and months.

Prices for B24 blends based on palm oil methyl ester (PME) have also emerged in the market, with discounts to Ucome blends at around $60-80/t.

Abundant palm supplies and numerous biodiesel production facilities in Indonesia and Malaysia make grades produced from the vegetable oil much cheaper than Ucome. Demand for PME is also not nearly as high outside of its two main production centers, and does not have the double-counting incentive that Ucome has in Europe. The EU in fact plans to phase out palm completely from its renewable fuels pool by 2030.

But Ucome remains the dominant bio-component in bunker blends in Singapore, despite there currently being no regulatory restrictions on what can be mixed into a B24 blend. This is because many major stakeholders share the EU's reservations over palm-based grades on perceived sustainability issues and concerns over deforestation, despite palm oil's cost advantages.

Ucome is blended with high-sulphur fuel oil (HSFO) as well as low-sulphur marine gasoil (LSMGO), but those blends are a very small part of the market, say market participants.

The weaker Ucome prices have resulted in B24 prices being assessed almost at parity with LSMGO bunkers on some days, which could further stimulate demand in the city-state. The premium of B24 to LSMGO so far in March has averaged $54.78/t.

In a speech given earlier this year, Singapore's minister of transport S Iswaran said that Singapore in 2022 sold 140,000t of biofuel bunkers, compared to just 16,000t of LNG bunkers.

Biofuels are a popular way for shipping companies to reduce greenhouse gas emissions and meet the International Maritime Organization's decarbonisation goals, as they are a "plug and play solution" that can be quickly deployed.

By Sammy Six and Amandeep Parmar

 

Photo credit and source: Argus Media
Published: 31 March, 2023

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LNG Bunkering

Osaka Gas launches shore-to-ship LNG bunkering service at its terminal

Company says it is the first gas utility company in Japan to offer LNG bunker fuel at its terminal to vessels and is also exploring the potential of replacing LNG with e-methane as a marine fuel.

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Osaka Gas launches shore-to-ship LNG bunkering service at its terminal

Osaka Gas on Monday (21 April) said it has launched its shore-to-ship LNG bunkering service, becoming the first gas utility company in Japan to offer liquefied natural gas (LNG) at its terminal to vessels.

The first delivery took place today at Osaka Gas’ Senboku LNG Terminal in Takaishi City, Osaka Prefecture, where LNG was supplied to Verde Heraldo, a bulker operated by Mitsui OSK Lines (MOL). 

Manifold Times previously reported that the bulker will sail under long-term transport contracts to supply raw materials for JFE Steel Corporation's mills. 

With the launch of the shore-to-ship service, in addition to its existing truck-to-ship LNG bunkering service—operational since 2019—Osaka Gas enhances its LNG fuel delivery capabilities to address the current scarcity of facilities in Japan that can supply LNG to vessels. 

The company’s future plans include the introduction of a ship-to-ship LNG bunkering service utilising a dedicated LNG bunkering vessel, scheduled to commence in fiscal 2026.

These supply methods aim to provide a stable and flexible LNG fuel supply to an increasing number of LNG-fuelled vessels as the maritime industry transitions away from heavy fuel oil.

This growth in LNG-fuelled vessels is driven by global decarbonisation trends and the International Maritime Organization’s target to achieve net zero greenhouse gas emissions by 2050. Through its LNG bunkering services, Osaka Gas is well-positioned to contribute to maritime industry sustainability.

Osaka Gas launches shore-to-ship LNG bunkering service at its terminal

In addition to expanding LNG fuel supply to vessels, Osaka Gas is exploring the potential of replacing LNG with e-methane as a marine fuel. 

Related: New MOL vessel to be supplied LNG bunker fuel in Japan before voyage to Australia

 

Photo credit: Osaka Gas
Published: 23 April, 2025

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Alternative Fuels

Japan: J-ENG begins co-firing of first full-scale marine engine with ammonia

Company says the first Japanese-developed and manufactured commercial full-scale, low-speed, ammonia-fuelled two-stroke engine has started co-firing operation with ammonia.

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Japan: J-ENG begins co-firing of first full-scale marine engine with ammonia

Japan Engine Corporation (J-ENG) on Monday (21 April) said the first Japanese-developed and manufactured commercial full-scale, low-speed, ammonia-fuelled two-stroke engine has started co-firing operation with ammonia, which will be installed in a vessel. 

J-ENG is developing the engine under the “Green Innovation Fund Project: Next-generation Ship Development” of the New Energy and Industrial Technology Development Organization (NEDO). 

Since May 2023, when J-ENG started the world's first ammonia co-firing operation of a large, low-speed, two-stroke engine in a test engine, J-ENG has obtained many results and knowledge, including stable operation at high ammonia co-firing rates and safe handling of ammonia, through various test operations over a period of about a year and a half. 

J-ENG will conduct verification operations on the full-scale engine and plans to ship the engine in October of this year. The engine will be installed on an Ammonia-fuelled Medium Gas Carrier (AFMGC) and then demonstration operations of the vessel will be carried out then.

In order to accommodate a wide variety of ammonia-fueled vessels, J-ENG is also concurrently developing an ammonia-fueled engine with a cylinder bore of 60cm, following the first engine with a 50cm cylinder bore mentioned above, for several promising follow-on projects.

Furthermore, after achieving the development and social implementation of these engines, the company has decided to construct a new plant with the support of a subsidy project by the Ministry of the Environment and the Ministry of Land, Infrastructure, Transport and Tourism through the GX Economic Transition Bonds. 

The new plant, which is scheduled for completion in 2028, will expand the production of ammonia fuel engines (in the product mix with fuel oil engines) and promote the spread and expansion of zero-emission ships.

“J-ENG, as a first mover of next-generation fuel engines, will contribute to the development of the Japanese shipping and shipbuilding industries through the early launch and expansion of these engines, and at the same time, contribute to the reduction of greenhouse gases (GHG) in international shipping and the achievement of carbon neutrality by 2050,” the company said on its website.

 

Photo credit: Japan Engine Corporation
Published: 23 April, 2025

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Methanol

Tsuneishi Shipbuilding completes first block loading of methanol-fuelled newbuildings

Company completed the first block loading of its first 5,900TEU methanol-fuelled containership and its first methanol dual-fuelled Kamsarmax bulk carrier in China and Philippines respectively.

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Tsuneishi Shipbuilding completes first block loading of methanol-fuelled newbuildings

Tsuneishi Shipbuilding on Tuesday (22 April) said its shipyard in China successfully completed the first block loading for its first 5,900TEU methanol-fuelled containership, which is the largest of this ship type built by the company, on 16 April.

In addition to the enhanced hull form and MT-FAST, the company’s innovative energy-saving technology, the integration of a large-capacity shaft generator has enabled this dual-fuel vessel to achieve both optimal loading performance and exceptional fuel economy when compared with fuel oil vessels in the same segment. 

MT-FAST is an energy-saving device that improves propulsion efficiency by approximately 4% by regulating water flow through the installation of multiple fins in front of the propeller. It was developed jointly with MTI of the NYK Group.

The vessel has been developed based on the concept of a final solution for the zero CO₂ emission vessel through the use of green methanol. Therefore, not only the main engine but also all on-board generators, HiMSEN engine which will be supplied by HD Hyundai, can be methanol-fuelled. 

This makes it possible to achieve carbon neutrality with the exception of a small amount of pilot fuel. Furthermore, the vessel is equipped with the necessary infrastructure to receive large-capacity alternative maritime power supplies. 

“In addition, the generators can be deactivated during anchorage, thereby achieving zero CO₂ emissions. We will continue to promote the further practical application of methanol-fuelled vessels with the aim of achieving carbon neutrality in the future,” the company said.

Tsuneishi Shipbuilding completes first block loading of methanol-fuelled newbuildings

Additionally, the Japan-based shipbuilder said its yard in the Philippines has successfully completed the first block loading for its first methanol dual-fuelled Kamsarmax bulk carrier on 21 April at THI Slipway No.2 . 

The vessel is scheduled to be launched in July 2025 and delivered in January 2026.

It is the first methanol-fuelled vessel in the Kamsarmax series, a long-standing series of vessels built by Tsuneishi Shipbuilding, which reached the 400-vessel milestone in July 2024.

By using methanol for propulsion, Tsuneishi Shipbuilding said the vessel reduces carbon dioxide emissions by 10%, nitrogen oxide emissions by 80% and sulphur oxide emissions by 99% during voyages compared to conventional models. 

 

Photo credit: Tsuneishi Shipbuilding
Published: 23 April, 2025

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