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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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Biofuel

GREENMARINE and Vertoro to accelerate adoption of lignin-alcohol as marine fuel

Like fossil oil, liquid lignin can be used as a platform for fuel, chemical and material applications.
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July 11, 2025

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Methanol marine fuels consultancy GREENMARINE and Vertoro, a Maersk-backed Dutch start-up focused on developing liquid lignin technology which can be used as a bunker fuel, has signed an agreement to jointly accelerate the market validation and commercial roll-out of lignin-alcohol as sustainable marine fuels.

“We at GREENMARINE Group are excited to join forces with Vertoro to bring their revolutionary lignin alcohol blend fuel to market,” said Fredrik Stubner, founder and CEO of GREENMARINE Group.

“This breakthrough technology redefines sustainable maritime fuels, delivering environmental benefits and cost efficiencies, paving the way for a greener, more competitive shipping industry.”

Dr. Michael Boot Boot, co-founder & co-CEO Vertoro, replied, “GREENMARINE Group has an excellent track record as a match maker for green fuel producers with engine manufacturers and shipping companies, opening many doors for us on both the fuel validation and offtake side.”

Vertoro, founded in 2017, produces liquid lignin exclusively from sustainably sourced forestry and agricultural residues by means of a patented thermochemical process. Like fossil oil, liquid lignin can be used as a platform for fuel, chemical and material applications.

Related: Maersk invests in Dutch start-up Vertoro to develop green lignin marine fuels

 

Photo credit: CHUTTERSNAP from Unsplash
Published: 11 July 2025

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Newbuilding

Singapore: Pinnacle Marine’s first B100 fuelled utility boat starts 1,000-hour research trial

Newbuilding operated by Prestige Ocean Pte Ltd will capture data on bunker fuel emissions, marine fuel behaviour, and performance.
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July 9, 2025

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The 50th vessel constructed by local boat builder Pinnacle Marine (Singapore) Pte Ltd, namely President 100, is starting 1,000 hours of real-time research trials in collaboration with several parties from Wednesday (9 July) onwards, it says.

Powered by B100 biodiesel, the newbuilding operated by Prestige Ocean Pte Ltd will capture data on bunker fuel emissions, marine fuel behaviour, and performance.

It will be participating in trials with Maritime Energy & Sustainable Development Centre of Excellence (MESD), Weichai Singapore, China Classification Society, Pacific International Lines (PTE) Ltd, Abo Shoten, Ltd. / 株式会社安保商店 , Abo Singapore, Wilmar International, Gulf Marine, Amspec Testing & Services, and AYK Engineering and Consulting.

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The President 100, Pinnacle Marine’s first full biodiesel utility boat, was launched on Tuesday in the presence of over 100 guests.

“Our latest vessel, President 100, merges legacy and future. Named after our first aluminium boat (“President”) and inspired by B100 biodiesel, it leads the charge for our next 50 vessels — many of which will embrace green technology,” stated Pinnacle Marine in a LinkedIn post.

“The launch was amazing, with strong turnout from across the maritime sector — authorities, shipowners, operators, agencies, chandlers, researchers, offshore engineers, and petrochemical suppliers.”

It added: “We’re excited to see how it paves the way for wider adoption of B100 biodiesel — a cleaner, sustainable path for Singapore’s harbour craft sector.”

 

Photo credit: Pinnacle Marine (Singapore) Pte Ltd
Published: 9 July 2025

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Newbuilding

BHP awards charter contracts for two ammonia dual-fuelled bulk carriers

BHP continues to work with the maritime industry to develop an ammonia bunkering plan for the two vessels when they are delivered from 2028.

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July 9, 2025

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Global resources company BHP on Wednesday (2 July) signed contracts with COSCO Shipping Bulk Co., Ltd., a subsidiary of COSCO shipping Group (COSCO Shipping) for the charter of two ammonia dual-fuelled Newcastlemax bulk carriers.

The new vessels to be built under this arrangement will be two of only a handful of vessels in the world capable of using ammonia as a bunker fuel.

The two vessels, expected to be delivered from 2028, will primarily transport iron ore from Western Australia to Northeast Asia.

When run on lower or low to zero greenhouse gas (GHG) emissions ammonia, these vessels will be capable of reducing GHG emissions by at least 50% and up to 95% on a per voyage basis compared to a conventionally fuelled voyage.

The five-year time charter contracts are expected to contribute towards a reduction in the GHG emissions intensity of BHP chartered shipping.

BHP continues to work with the maritime industry to develop an ammonia bunkering plan – the process of fuelling ships with ammonia – for the two vessels when they are delivered from 2028.

Sourcing lower and low to zero GHG emissions ammonia is subject to an ongoing tender process.

 

Photo credit: BHP
Published: 9 July 2025

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