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Bunker Fuel

Argus Media viewpoint: HSFO to face continued strain

Supply pressures will continue to elevate European fuel oil prices in 2024 while bunkering hubs outside Europe might grow in prominence; market is predicting lower demand for bunker fuels in Europe in 2024.

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Supply pressures will continue to elevate European fuel oil prices in 2024, with relief coming from hitherto less significant exporters a possibility, while bunkering hubs outside Europe might grow in prominence.

18 December 2023

EU states pivoted away from Russia for their high-sulphur fuel oil (HSFO) imports after sanctions started in 2023. Vortexa data show that after 5 February, half of HSFO departures signalling for European ports — excluding those in Turkey — came from the UAE, Saudi Arabia and Iraq. In contrast, across all of 2022, Russia accounted for nearly 80pc of seaborne HSFO deliveries.

Relying on these middle Eastern countries for HSFO and crude oil supplies in 2024 will probably tighten supplies over the summer, as was the case in 2023, when HSFO discounts to Ice Brent crude futures flipped to a premium for the first time in 30 years.

Further establishing flows between newer exporters will be important to European buyers and refiners in 2024. Venezuela, whose oil industry was sanctioned by the US until October, has been touted as a potential supplier of sour crude and fuel oil to the west in the coming months, which could provide some relief to HSFO undersupply in northwest Europe. Likewise, Venezuelan volumes going to the 

Mediterranean may incentivise transportation of the product within the region, where HSFO paucity has at times disincentivised refiners from paying rising freight costs to move smaller than desired cargoes.

HSFO demand from non-European countries such as China may also draw the attention of large exporters of sour crude and feedstocks. China recently released a new set of import quotas for foreign HSFO after independent refiners reached their crude import limit.

Demand for imported fuel oil from the Chinese refining sector has approached historic highs this year. But some refinery sources in China reckon the government’s tax rebate policy will be adjusted to reduce these flows.

Eastern promises

The market is predicting lower demand for marine fuels, largely consisting of very-low sulphur fuel oil (VLSFO), in Europe across 2024, partly because of the marine sector preparing for its greenhouse gas emissions to be incorporated in the EU’s emissions trading scheme (ETS).

From January, the ETS will cover CO2 emitted from all large vessels entering EU ports, with shipping companies in 2025 having to surrender emissions allowances for 40pc of those emissions. In the short run this will push vessels to bunker outside EU waters, as the transition to green marine fuels gets underway.

Bunker fuel demand has generally tapered off towards the end of 2023, leading many suppliers to shift large volumes to Singapore, the world’s main bunkering hub. Singaporean demand for bunker fuels generally rallied in the last quarter.

VLSFO stocks have also been moved east out of Europe because of the tightness of supply in Singapore in recent months, a knock-on effect of technical disruption at refineries east of Suez. Producers and suppliers in Europe are keeping a weather eye on the state-owned 615,000 b/d al-Zour refinery in 

Kuwait, a potentially huge supplier of VLSFO in the east next year. Al-Zour was hit by many technical disruptions in the latter part of 2023, at one point having to draw operations to a near complete halt

With a consequently reduced output of VLSFO, producers in Europe have been able to capture margins by selling to Singaporean buyers. In 2024, whether KPC can end problems at al-Zour will play a big part in determining whether the 0.5pc sulphur product continues to flow east, and whether pressure on stocks in Europe will rise or fall.

By Bob Wigin

Photo credit and source: Argus Media
Published: 19 December, 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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