Connect with us

Biofuel

ENGINE: Biofuel bunkers are making waves

ENGINE team launched a project to map out all the physical bunker suppliers that offer biofuels in ports and investigated what was available in different regions.

Admin

Published

on

RESIZED Shaah Shahidh on Unsplash

As a growing part of the shipping industry is exploring ways to trim its carbon footprint, the ENGINE team reports that biofuels are making waves and finding their way to bunker ports around the world.

We often get asked variants of the question: “Where can we bunker biofuels?”

For every region and port that was enquired about, we had to investigate what was available. As the information accumulated in leaps and bounds, we decided to launch a project to map out all the physical bunker suppliers that offer biofuels in more and more ports.

It’s a moving target, and this is some of what we have uncovered so far.

East of Suez

266810eb 8bdd 4ae6 87a5 6963a1d3ae64 1200w

Biofuels are starting to become more common in Singapore, but so far they have only made up a fraction of the port’s total bunker sales. B24 (24% biofuel) is the standard blend ratio as sea-going bunker barges are restricted to carrying 25% biofuel and as suppliers seek to err on the safe side of that requirement. Prices are often quotes as a premium over very low sulphur fuel oil (VLSFO) and the typical biofuel grade is fatty acid methyl ester (FAME), which is also called biodiesel.

A couple of Chinese bunker suppliers have started offering biofuel blends for delivery in Zhoushan and Guangzhou, and another two have brought them to Hong Kong. As biofuel blends don’t qualify as bonded bunkers in mainland China, in which value added tax (VAT) is waived for VLSFO, it makes less sense for Chinese refiners and blenders to blend them with VAT-exempt VLSFO. The suppliers therefore import finished B24-VLSFO blends from Singapore and other places before they are sold in Chinese ports.

B35-MGO blends are available in Indonesian ports because of a national 35% minimum biofuel blending mandate. But these derive from palm oil and are not sustainable. Palm oil’s close connection to deforestation means they won’t qualify under the International Sustainability and Carbon Certification (ISCC) programme or as renewable fuels towards upcoming European Union (EU) regulations.

In the Middle East there is one major producer and wholesaler of waste-based biofuels. The UAE-based producer has struck supply deals with two physical bunker suppliers in the country, where it collects used cooking oil (UCO) from McDonalds restaurants and other sources. One of the suppliers has so-called ISCC-certification, which requires the biofuel to meet certain sustainability criteria throughout its lifecycle. From a small base, the producer says that bunker demand has doubled in each of the past three years, and that demand is expected to grow exponentially in the years to come.

Europe & Africa

16a13c7a 84cb 4dd1 87b4 cdca94ca57ce 1200w

Rotterdam dominates the global biofuel bunkering scene. Around 6% of all of the bunkers sold in the first half of this year was blended with biofuels, and that was down from an even stronger 8% last year. More biofuel trials and regular refuelling of ships have taken place in Rotterdam than in any other port and a greater number of suppliers offer biofuels there.

Local biofuel processing capacity, imports from China and competition between bunker suppliers in a burgeoning biofuel bunker market provide economies of scale in Rotterdam and contribute to keep prices in check.

But perhaps the biggest reason behind its growth is simple. Rotterdam is Dutch, and the Netherlands has generous market mechanisms in place for biofuels sold for bunkering, particularly for advanced waste-based biofuels. In fact, the price incentives have worked too well and pulled biofuel feedstock away from the road fuels market. The road fuels market faces tougher blending mandates, and more biofuels are needed to meet them, the government told ENGINE.

To rebalance the biofuel scales between road and marine, the Dutch government has launched a consultation with a proposal that could effectively halve the biofuel rebate multiplier. This could see Rotterdam’s discount of more than $200/mt to Singapore be slashed to about half that.

Mediterranean bunker suppliers are also starting to catch the biofuel wave. A few suppliers across Gibraltar, Spain, Malta and Italy now offer blends. Some typically need a week or two of lead time to source, blend and deliver the fuel to ships. One supplier has struck a deal with a ferry company that has tested biofuels blended in small ratios on a ferry with the upcoming FuelEU Maritime regulation in mind.

A lack of biofuel demand in South Africa and Mozambique has meant that suppliers have so far held back on bringing it to market. Some are saying they hope to pursue biofuel in the future.

Americas

US biofuel bunkering is struggling to gain traction in the absence of government subsidies. While harbour crafts and road vehicles enjoy subsidies, ocean-going vessels do not. This has meant that comparable B30 biofuel blends have been prohibitively expensive in Houston compared to Rotterdam for example.

Unlike Rotterdam and the rest of the EU’s upcoming CO2 and greenhouse gas (GHG) regulations, there are also no nationwide US environmental regulations to incentivise uptake of biofuel blends by ships. Customer demand will therefore likely come from ship types close to the end consumer, like ferries, cruise ships and container ships.

Some bunker suppliers have already announced readiness or intent to offer. These include California, where local environmental regulations have boosted uptake of 99% renewable diesel (R99), which differs from FAME in that it is not chemically esters. Canada’s Vancouver, the US Gulf Coast, Colombia’s Cartagena and Brazil make up some of the other places with biofuels on offer.

The Panama Canal is likely the biggest bunker area in the Americas, but a joint venture of companies that was previously buoyant about the prospect of building at least one biorefinery and importing biofuels for bunkering and other transport fuel markets has more recently cast doubts about its feasibility. “The issue is feedstock and competing with current subsidies in the US and EU markets that hog and distort [the] price of feedstock,” one of the companies told ENGINE.

Meanwhile, a recent entrant to the US Gulf Coast’s biofuel bunker market has been championing a mass balancing approach. Its pricing is based on the feedstock type, but thanks to mass balance accounting the feedstock purchased does not necessarily need to be the feedstock in the fuel consumed by that buyer’s ship. Blends based on UCO, soybean oil and tallow are current options, and more waste-based biofuel alternatives is expected to follow in the future.

To help shipowners get more clarity around what’s available where, ENGINE will come out with more detailed overviews of biofuel bunker supply by region and port later this year.

By the ENGINE team: Shilpa Sharma, Nithin Chandran, Queeneerich Kharmawlong, Konica Bhatt, Debarati Bhattacharjee, Aparupa Mazumder, Tuhin Roy and Erik Hoffmann

Source: ENGINE
Photo credit: ENGINE / Shaah Shahidh on Unsplash
Published: 16 October, 2023

Continue Reading

Biofuel

NYK to launch Japan’s first antioxidant for biodiesel bunker fuel in August

When added to biofuel, BioxiGuard slows progression of oxidative degradation and helps deter issues such as metal corrosion, strainer blockage, and cleaning-system fouling often triggered by oxidised fuel.

Admin

Published

on

By

Japan’s first antioxidant by NYK for biodiesel bunker fuel set to release in August

Nippon Yuka Kogyo (Nippon Yuka), an NYK Group company specialising in chemical R&D as well as the manufacture and sale of chemical products, on Wednesday (21 May) announced the upcoming release of BioxiGuard, the Japan’s first antioxidant specially developed for marine biodiesel, from 10 August.

NYK said compared with conventional petroleum-based fuels, biofuel contains a higher proportion of unsaturated fatty acids, making it more susceptible to oxidative degradation. Once oxidised, the biofuel can produce acidic substances and sludge, adversely affecting vessel fuel efficiency by reducing the fuel’s calorific value.

Developed by Nippon Yuka based on property analyses of the biofuel used in NYK-operated vessels, BioxiGuard is specifically formulated to enhance the oxidation stability of biodiesel. When added to biofuel, BioxiGuard slows the progression of oxidative degradation and helps deter issues such as metal corrosion, strainer blockage, and cleaning-system fouling often triggered by oxidised fuel.

According to laboratory tests conducted by Nippon Yuka researchers, the addition of BioxiGuard at a concentration of 1 part per 500 resulted in an approximate 50% reduction in the rate of biofuel degradation compared to untreated biofuel. 

This significant improvement underscores the potential for vessel operators to not only extend the useful life of biofuel on board but also maintain more stable and cost-effective vessel operations.

 

Photo credit: NYK
Published: 22 May, 2025

Continue Reading

Alternative Fuels

UECC: Liquefied biomethane bunker fuel to enable compliance surplus under FuelEU

Company says bunkering liquefied biomethane will give it a significant compliance surplus under FuelEU that can be monetised through the regulation’s pooling mechanism.

Admin

Published

on

By

UECC: Liquefied biomethane bunker fuel to enable compliance surplus under FuelEU

United European Car Carriers (UECC) on Monday (19 May) said bunkering liquefied biomethane (LBM), also known as bio-LNG, will give it a significant compliance surplus under FuelEU that can be monetised through the regulation’s pooling mechanism.

UECC’s Senior Manager of Business Planning & Sustainability, Masanori Nagashima, said bio-LNG is now seen by the company as the key fuel to achieve its target of a 45% reduction in carbon intensity by 2030 versus a 2014 baseline and net zero by 2040 – ahead of the 2050 deadline set by both the IMO and EU.

The marine fuel is being bunkered on UECC’s dual and multi-fuel LNG PCTCs – three of which have battery hybrid capability – under Sail for Change that was launched by UECC last year and currently has participation by automotive giants including Toyota, Ford and JLR. 

The company also has on order two multi-fuel LNG battery hybrid newbuild PCTCs due for delivery in 2028 that could be enlisted into the programme. 

The overall carbon intensity of the UECC fleet, using the same gCO2e/MJ (grams of CO2 equivalent per megajoule) metric as FuelEU, is calculated at 68 gCO2e/MJ to achieve an interim target of a 25% carbon intensity reduction in 2025, though the company is expected to achieve 57 gCO2e/MJ this year based on its supply plan, according to Nagashima.

This is significantly below the current FuelEU threshold of 89.3 gCO2e/MJ – a 2% reduction from the baseline of 91.16 gCO2e/MJ – and still lower than the threshold of 77.9 gCO2e/MJ from 2035 that is a 14.5% reduction versus the baseline figure.

“The low carbon intensity of our fleet means all of our vessels are expected to gain a C rating or above with the IMO’s Carbon Intensity Indicator (CII)” Nagashima explained.

“It also gives us a significant compliance surplus under FuelEU that can be monetised through the regulation’s pooling mechanism, allowing a great commercial opportunity to offset regulatory costs for customers and eliminate FuelEU surcharges.”

“UECC will continue to accelerate its progress in improving decarbonisation of its fleet by further optimising our fuel mix strategy going forward to incorporate more high-impact fuels as these become viable.”

 

Photo credit: Titan Clean Fuels
Published: 22 May, 2025

Continue Reading

Biofuel

Wallem publishes whitepaper on best practice guidance for bio bunker fuels

Study offers comprehensive guidance on the precautions owners and crew need to consider before and during use to ensure ships, ships systems and crews are fully prepared to load, store and use biofuels.

Admin

Published

on

By

RESIZED Chris Pagan

Hong Kong-based ship manager Wallem Group on Tuesday (20 May) published a new whitepaper to ensure ships, ships systems and crews are fully prepared to load, store and use biofuels in everyday vessel operations.

The company said ‘Marine Biofuels: Adoption, use and best practice’ offers a comprehensive guidance on the precautions owners and crew need to consider before and during use.

With a lower calorific value than fossil fuels, biofuels present adoption challenges that require close attention from procurement, technical and vessel operating personnel, noted Abhijit Ghosh, Head of Maritime Technology and Innovation, Ship Management, Wallem Group.

The whitepaper examined the regulatory landscape surrounding marine biofuels, but also the specifics of IMO compliance, and the transparency needed to use fuels that vary batch to batch. It explains how these blends of Fatty Acid Methyl Ester (FAME) and residual or distillate fuels impact storage tanks, fuel systems, machinery, and crew training, also reflecting on the need for additional insurance cover.

Based on experience, Wallem has particular recommendations for owners on the assurances they need from equipment suppliers before introducing biofuels. It also explores the consequences for biofuel users of improper blending, acidity, biodegradation and microbial growth, fouling, waxing and clogging.

The publication provides best practice recommendations for testing, materials selection, segregation, temperature control, tank cleaning and fuel line flushing. 

For long-term biofuel use, Wallem recommended that engines be retrofitted with hardened fuel pumps and corrosion-resistant coatings.

The whitepaper also considered crew training gaps and offered recommendations for monitoring, measuring, and checking biofuel use to ensure that personnel, systems, and the ship remain safe.

“The combination of a centralised digital system for real-time tracking and analysis of biofuel consumption and a skilled and well-trained crew can be transformative for enabling the future-ready maritime fleet”, said Ghosh.

Note: The whitepaper ‘Marine Biofuels: Adoption, use and best practice’ can be downloaded here

 

Photo credit: Chris Pagan on Unsplash
Published: 21 May, 2025

Continue Reading

Trending