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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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Methanol

World Fuel and partners complete first green methanol bunkering of car carrier in Shanghai

Operation involved the delivery of approximately 2,800 MT of green methanol to “Arctic Tern” via a ship-to-ship transfer using SIPG Energy’s dedicated methanol bunkering vessel “M/V Hai Gang Zhi Yuan”.

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World Fuel and partners complete first green methanol bunkering of car carrier in Shanghai

Marine fuel provider World Fuel on Tuesday (21 July) said it successfully completed the first green methanol bunkering of M/V Arctic Tern, with EUKOR Car Carriers and SIPG Energy at the Port of Shanghai. 

Arctic Tern is the first vessel in the new Shaper Class series of car carriers. 

The operation involved the delivery of approximately 2,800 MT of green methanol to Arctic Tern via a ship-to-ship transfer using SIPG Energy’s dedicated methanol bunkering vessel M/V Hai Gang Zhi Yuan, the largest vessel of its kind in operation. 

The bunkering operation was carried out at Haitong Terminal, Waigaoqiao Port Area, Shanghai Port, with cargo handling operations conducted simultaneously during bunkering.

This marks EUKOR Car Carriers’ first green methanol operation and the first time Arctic Tern has bunkered methanol since its delivery on 9 July. The operation marked the first bunkering at Shanghai Port of green methanol produced locally in Shanghai for an international PCTC operator. 

It also demonstrated the city’s integrated green methanol value chain, spanning local production, storage and bunkering, and established a replicable “Shanghai Model” for green methanol supply.

World Fuel arranged the supply and delivery of the fuel on behalf of EUKOR Car Carriers, working with SIPG Energy as the physical supplier at the Port of Shanghai.

The green methanol supplied was produced from municipal solid waste, ISCC-EU certified, and had a carbon intensity value below 25 gCO₂e/MJ.

Arctic Tern is the first of fourteen Shaper Class vessels ordered by Wallenius Wilhelmsen. With a capacity of 9,300 car equivalent units and methanol dual-fuel capability, the vessel will be operated by EUKOR Car Carriers, jointly owned by Wallenius Wilhelmsen and Hyundai Motor Group. Following her first green methanol bunkering, Arctic Tern will continue her maiden voyage from Asia to Europe.

Xavier Leroi, COO Shipping Services at Wallenius Wilhelmsen and CEO of EUKOR Car Carriers, said: “Completing Arctic Tern’s first green methanol bunkering shortly after delivery is a significant milestone towards our decarbonisation ambition for both EUKOR Car Carriers and Wallenius Wilhelmsen. It demonstrates how investments in next-generation vessel technology and fuel flexibility are being translated into real-world operations. 

“This achievement reflects the strong collaboration between all parties involved. Together, we have shown how partnerships across the maritime value chain can help make lower-emission fuels available and operationally viable at scale.”

Mark Tamsitt, SVP Global Marine Sales at World Fuel, said, “The first bunkering event with a new fuel is a significant moment for any shipowner, and our role is to make it as seamless as possible. By connecting EUKOR Car Carriers with SIPG Energy’s proven green methanol capability at the Port of Shanghai, we were able to deliver on reliable supply, fuel quality, and safe processes. As more of our customers bring methanol dual-fuel tonnage into service, we are committed to being the partner that makes these kinds of operations routine.”

Mr. Zhang Da, General Manager of SIPG Energy, said, “Welcoming Arctic Tern to the Port of Shanghai for her first green methanol bunkering demonstrates the strength and maturity of our supply capability. Building on our well-established methanol ship-to-ship bunkering services for container vessels, we have already extended such services to pure car and truck carriers (PCTCs). This bunkering sets a new record for the largest single SIMOPs green methanol bunkering for PCTCs in China, marking another step in building Shanghai’s position as a global green energy hub for international shipping.”

This operation follows Wallenius Wilhelmsen’s announcement on 9 July that Arctic Tern would complete her first methanol bunkering shortly after delivery. The vessel entered service on routes between Asia and Europe immediately following handover from China Merchants Jinling Shipyard in Nanjing.

 

Photo credit: World Fuel
Published: 22 July, 2026

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Ammonia

HPA and MB Energy develop safety concept for STS ammonia bunkering

HPA says the Port of Hamburg will become “bunker ready” for ammonia, laying the groundwork for safe and reliable ammonia bunkering in the future.

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HPA and MB Energy develop safety concept for STS ammonia bunkering

The Hamburg Port Authority (HPA) and integrated energy company MB Energy on Tuesday (21 July) said they have completed a comprehensive risk analysis and developed a dedicated safety concept for ship-to-ship ammonia bunkering.

MB Energy said the analysis lays the groundwork for the safe introduction of ammonia as a future marine fuel.

“With our planned ammonia import terminal in Hamburg-Blumensand, MB Energy intends to provide the reliable land side supply infrastructure needed to support this transition across northern German ports,” it said in a social media post. 

Mabanaft Group was renamed to MB Energy last year and merged over 50 existing brands under one identity. 

Separately, HPA said the Port of Hamburg will become “bunker ready” for ammonia, laying the groundwork for safe and reliable ammonia bunkering in the future.

“The focus is in particular on container ships, cruise ships as well as RoRo and ConRo (Container/RoRo) ships,” it said. 

“We expect ammonia to establish itself as an alternative marine marine fuel in the coming years. With our preparatory work, we are already creating the conditions to welcome the first ammonia-powered ships in Hamburg and to bunker them safely.:

HPA added that the import terminal for ammonia planned by MB Energy from 2029 will make a decisive contribution to ensuring the reliable availability of ammonia as a bunker fuel in northern German ports in the long term. 

“The use of an ammonia bunker barge is considered a possible addition to the landside infrastructure to enable ship bunkering in the port and beyond in the future,” it said.

Related: Mabanaft Group renames as MB Energy, merging over 50 brands under one identity

 

Photo credit: Hamburg Port Authority
Published: 22 July, 2026

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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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