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ENGINE: Chinese ports pricing B24 bio bunker fuel lower than Singapore’s

Suppliers in the Chinese ports of Guangzhou, Shenzhen and Dongguan are pricing B24-VLSFO about $40/mt lower than Singapore’s B24-VLSFO.

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Guangzhou China

Suppliers in the Chinese ports of Guangzhou, Shenzhen and Dongguan are pricing B24-VLSFO about $40/mt lower than Singapore’s B24-VLSFO.

Bunker fuel blends sold in Chinese ports don’t qualify as bonded bunkers in mainland China, in which value-added tax (VAT) is waived for VLSFO sold to ocean-going vessels. The lack of VAT waiver for biofuel blends discourages 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. It remains unclear whether the Chinese authorities will consider including marine biofuel blends sold to ocean-going vessels under VAT waiver scheme in the near term, a source says.

Singapore’s B24-VLSFO price has typically been at a discount to B24-VLSFO prices in most Chinese ports, including Zhoushan. It has now swung to a premium of $42/mt over Guangzhou’s B24-VLSFO price, according to ENGINE data.

Dutch marine biofuel blends have also lost some of their price advantages over Singapore and Chinese ports, after the Dutch government slashed its rebate multiplier for marine biofuel sales from 0.80 to 0.40.

Rotterdam’s B24-VLSFO discount to Singapore’s B24-VLSFO has narrowed from $225/mt on 27 December, to $149/mt now. Its B24-VLSFO discount to Guangzhou’s B24-VLSFO stands at $107/mt.

By Nithin Chandran

 

Source: ENGINE
Photo credit: Max Zhang on Unsplash
Published: 16 January, 2024

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Biofuel

Stolt Tankers opts for HVO20 bunker fuel to power over 30 inland tankers

HVO20, is an 80/20 blend of hydrotreated vegetable oil, which is expected to reduce carbon emissions from the fleet by around 18% in December, compared to the ULSD fuel that is traditionally used.

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Stolt Tankers opts for HVO20 bunker fuel to power over 30 inland tankers

Stolt Tankers on Monday (2 December) said it will use a biofuel bunker blend on all ships in its Stolt-Nielsen Inland Tanker Service (SNITS) fleet – more than 30 in total. 

The bunker fuel, HVO20, is an 80/20 blend of hydrotreated vegetable oil (HVO), which is expected to reduce carbon emissions from the SNITS fleet by around 18% in December, compared to the ultra-low sulphur diesel (ULSD) fuel that is traditionally used. 

Maickel Uijtewaal, SNITS General Manager, said: “We are delighted to be undertaking this initiative to bunker renewable fuel on all our vessels this month. It underlines our commitment to exploring and implementing energy-efficiency measures where possible and we hope it inspires our customers and others in the industry to do the same.”

This is the latest in a series of sustainability milestones for the SNITS fleet. In 2023, SCR exhaust aftergas treatment systems were installed on Stolt Rhine and Stolt Merwede to significantly reduce nitric oxide and nitrogen dioxide (NOx) emissions. 

At the same time, SNITS became a Green Award incentive provider. This is a quality assessment certification scheme that awards ships that exceed industry standards in terms of safety, quality and environmental performance.

In August 2024, Stolt Main bunkered 100% renewable HVO100 fuel for the first time, and five other vessels moved to renewable biofuels in 2024.

 

Photo credit: Stolt Tankers
Published: 4 December, 2024

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Events

Argus Media organises Green Marine Fuels Asia Conference in Singapore

Conference will explore Argus’ global analysis on alternative bunker fuels, LNG benefits in the net zero pathway, global clean fuel policy and regulation, and growing demand of biofuels in the region.

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Argus Media organises Green Marine Fuels Asia Conference in Singapore

Independent global energy and commodity market intelligence provider Argus Media is organising the Argus Green Marine Fuels Asia Conference on 18 to 19 February in Singapore.

The event will be held at the PARKROYAL COLLECTION Marina Bay, 6 Raffles Boulevard, Singapore 039594.

With Argus’ expertise in the biofuels, methanol, ammonia, hydrogen and LNG sectors – the conference will bring together key players from across these value chains to meet with port authorities, shipowners, charterers, technology, finance, regulators, storage and terminals.

Over 40 experts and key industry stakeholders will be offering diverse insights into the competitive and progressively complex global marine fuels market in this key region.

Key speakers for the event include Kenneth Lim, Assistant Chief Executive (Industry & Transformation), Maritime and Port Authority of Singapore (MPA); Torben Nørgaard, Chief Technology Officer - Energy & Fuels, Maersk Mc-Kinney Moller Center; Jerid Soo, Assistant General Manager (Global Sustainability and ESG), Pacific International Lines; Kazuki Yamaguchi, General Manager and Head, Maritime Energy Solution, Energy Transformation Business Group, Sumitomo Corporation; and Mahua Chakravarty, Editor, Marine Fuels (Asia), Argus.

The conference’s agenda will include as Argus’ global analysis on alternative bunker fuels, LNG benefits in the net zero pathway, global clean fuel policy, incentives and regulation, perspectives by shipowners and charterers on new fuels investments and the growing demand of biofuels in the region.

The event will offer plenty of opportunities for networking including extended coffee and lunch breaks, networking drinks reception and using the networking platform and app to schedule meetings with attendees in advance.

Note: More information on the Argus Green Marine Fuels Asia Conference can be found here including an early bird rate if registrations are completed by 10 January. 

 

Photo credit: Argus Media
Published: 3 December, 2024

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Alternative Fuels

Titan to supply biomethane bunker fuel to UECC multi-fuel ships with new deal

UECC multi-fuel will sail on biomethane supplied by Titan for rest of 2024 and most of 2025, expanding upon UECC and Titan’s established commitment to using biomethane.

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Titan and UECC enter biomethane bunker fuel supply agreement

Titan Clean Fuels (Titan) on Monday (2 December) said it has signed a new agreement with United European Car Carriers (UECC) that will see the vast majority of Liquified Gas supplied by Titan to UECC’s multi-fuel ships to have them run on biomethane (LBM/bio-LNG) for the remainder of 2024 and then most of 2025.

This deal expands upon UECC and Titan’s established commitment to using LBM. Since 1 July, over 95% of the fuel delivered to UECC’s pure car and truck carriers (PCTCs) by Titan has been LBM; resulting in avoiding more than 30,000 tonnes of green houses gasses emitted.

According to Titan’s analysis, the quantity of LBM in 2025, which Titan and UECC are realistically targeting, will avoid more than 75,000 tonnes of greenhouse gases being emitted.

That reduction is equivalent to the annual emissions of around 10,000 EU citizens or 540 million kilometers driven in an average car. Using LBM over oil-based fuels also virtually eliminates harmful local emissions Black Soot and other Particular Matters (PM), Nitrogen Oxides (NOx) and Sulphur Oxides (SOx).

Daniel Gent, Energy & Sustainability Manager at UECC, commented: “Through our CO2 registry, this agreement offers our customers the opportunity to significantly reduce their scope three emissions, and we appreciate those that have already jumped at the offer. Toyota Motor Europe, Ford of Europe and another major European vehicle manufacturer quickly signed up to Green Gas Month in July 2024, and following its success every month will now essentially be Green Gas Month!

“The engagement in Sail for Change from our customers, alongside Titan’s in-depth expertise in clean fuel supply and bunkering, have allowed us to almost entirely transition from LNG to LBM, and to swiftly scale up our use of biomethane. With this expansion, we look forward to hearing from more customers who want to reduce their scope three emissions and use sustainable shipping services today.”

Caspar Gooren, Commercial Director Renewable Fuels, said: “As frontrunners with a strong and clear renewable fuels strategy, UECC has been pivotal in propelling the uptake of LBM, and we are excited to be supporting them as they sail towards a sustainable future. This agreement highlights that, just like LNG before it, LBM is quickly becoming a standardised product and gaining popularity as it is recognized as future fuel.

“The LBM delivery scale and consistency we’re able to achieve is, in part, thanks to robust mass balancing processes and related liquefaction LNG terminal infrastructure in the region. It’s now time for the whole of Europe and the world to follow suit. Looking ahead, both Titan and UECC are aligned on the need to geographically expand biomethane supply and diversify waste feedstocks to ensure certified LBM is accessible to those in shipping that want and need it.”

The announcement follows news that UECC has invested in two new multi-fuel car carriers to be delivered in 2028, with the option to add two more. 

Related: UECC in fleet expansion with order of up to four multi-fuel battery hybrid PCTCs

 

Photo credit: Titan and United European Car Carriers
Published: 3 December, 2024

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