Bunker Fuel

ENGINE introduces price tracker of comparable alternative and conventional bunker fuels

Platform introduced its Fuel Switch Snapshot and also teamed up with price reporting agency and biofuels specialist PRIMA Markets on biofuel-blended bunker fuel benchmark prices.

Published

7 months ago

March 18, 2024

Admin

ENGINE introduces price tracker of comparable alternative and conventional bunker fuels

Bunker intelligence platform ENGINE on Wednesday (13 March) introduced its Fuel Switch Snapshot, a price tracker of comparable alternative and conventional bunker fuels in the world’s two biggest bunkering hubs, Singapore and Rotterdam.

Despite the EU Emissions Trading System’s (EU ETS) tax on carbon, burning HSFO, VLSFO or LSMGO and paying for the CO2 they emit still pays off when bio-blended alternatives are priced as high as they are today.

However, as time goes on and penalties increase, the switch to alternative fuels becomes a question of when, not if.

ENGINE’s weekly Fuel Switch Snapshot provides an apples-to-apples comparison of bunker fuels on the market, so buyers can consider not only the outright price of the fuels, but also how far their ships can sail on them and what they will pay to burn them on EU-linked voyages.

Once a week, ENGINE will publish a snapshot of alternative and conventional bunker fuel prices in the world’s two biggest bunkering hubs.

The prices will come adjusted for calorific contents – the bang for your buck – and with costs of emitting CO2 in the EU both included and excluded. This is to illustrate the impact of the EU ETS on pricing and provide the best possible generalised comparison tool in these fast-changing times.

ENGINE has also teamed up with price reporting agency and biofuels specialist PRIMA Markets on biofuel-blended bunker fuel benchmark prices.

Combining ENGINE’s conventional bunker fuel benchmarks with PRIMA Market’s assessed biofuel benchmarks, and backing them up with stems, generates robust B24 and B30 benchmarks for Rotterdam, Singapore and Los Angeles.

Together, we are launching a series of eight bio-bunker benchmark prices:

B30 VLSFO Rotterdam HBE
B30 LSMGO Rotterdam HBE
B30 UCOME VLSFO ARA
B30 UCOME LSMGO ARA
B24 UCOME VLSFO Singapore
B24 UCOME LSMGO Singapore
B30 UCOME VLSFO Los Angeles
B30 UCOME LSMGO Los Angeles

The two HBE prices listed above contain 30% biofuel produced from advanced bio feedstocks listed in Annex IX Part A of the EU’s recast Renewable Energy Directive (RED II). Advanced biofuel prices are effectively rebated through the Dutch hernieuwbare brandstofeenheden (HBE) system, and this HBE rebate is currently about 3-4 times greater than the EU Allowance (EUA) deduction for the same biofuels.

The six other used cooking oil methyl ester (UCOME) benchmarks represent biofuels produced from bio feedstocks listed in Annex IX Part B of RED II. These do not qualify for Dutch HBE rebates and are therefore typically priced higher than advanced biofuels in the Netherlands – the world’s biggest market for bio-bunkers.

All eight of these new benchmark prices will be displayed with market commentary in the news feed on the ENGINE marine fuel intelligence platform and the PRIMA CarbonZero data analytics platform.

ENGINE managing editor Erik Hoffmann, said: “Biofuels are increasingly making their way into the bunker blending pool as regulations on ship emissions tighten and incentives to burn more sustainable fuels grow.”

“Partnering with PRIMA Markets on bio-bunker price benchmarks makes a lot of sense for ENGINE because PRIMA is a trustworthy and rigorous price reporting agency that produces robust price assessments on bio feedstocks and finished biofuels.”

“In the marine space, ENGINE has developed the industry’s largest database of real bunker market transactions to bring transparency to this historically opaque market. Combining PRIMA’s biofuels expertise with ENGINE’s bunker market intelligence makes for a strong combination and we’re thrilled to be able to deliver these specialist benchmark prices.”

PRIMA Markets director Matthew Stone, said: "The marine market is the latest entrant to the booming renewables space. PRIMA Markets has a long history of helping firms across different verticals develop and execute their emissions reduction strategies.”

“PRIMA Markets provides the data, information frameworks and deep understanding of the market from feedstocks to renewable fuels to allow firms to execute successful strategies in Renewables.”

“PRIMA is proud to be working with ENGINE to extend its services to shipping firms, bunker blenders, and the end-users looking to reduce the emissions profile of their products as they cross the globe.”

Photo credit: ENGINE
Published: 18 March 2024

Biofuel

Argus Media: Bunkering sector needs deeper dive into B24 bio bunker fuel market

‘As we advance into 2025, the need to understand how B24 matures in terms of market fundamentals, pricing and dynamics will be a key indicator for the marine sector,’ says Mahua Chakravarty of Argus.

Published

1 day ago

October 4, 2024

Admin

Argus Media organises free admission ‘Argus Asia B24 Forum’ for bunkering sector

Ahead of Argus Asia B24 Forum, Manifold Times interviewed Mahua Chakravarty, Head of Marine Fuels Pricing (Asia) of independent global energy and commodity market intelligence provider Argus Media; she explains the growing prominence of B24 bunker fuel in the marine sector and believes it is imperative for the bunkering sector to deepen its knowledge on it:

MT: Why is it important for the bunkering sector to know more about the B24 bunker fuel market?

B24 has emerged as the first alternative marine fuel that allows ship-owners and charterers a drop-in fuel option, and make greenhouse gas (GHG) savings, for their voyages into EU and territorial waters.

It has proved to be the most practical solution for ship-owners that eliminates costly retrofitting charges. The easy availability of used cooking oil methyl ester (UCOME) as a blendstock from China and southeast Asia, also adds to its overall attractiveness as an alternative fuel.

B24 consumption in the port of Singapore recorded multi-fold jumps to touch 518,000t in 2023 as ship-owners fuelled for trials in preparation for the implementation of EU-led mandates like the EU Emissions Trading Scheme (ETS) and the Carbon Intensity Index (CII) rating. In 2024, B24 demand has continued to grow with 377,800t of consumption seen up to August, according to statistics from the Maritime and Port Authority of Singapore (MPA).

As we advance into 2025, the need to understand how B24 matures in terms of market fundamentals, pricing and dynamics will be a key indicator for the marine sector. Being the first generation of new marine fuels, B24 has shown the way that biofuel blends can provide a solution for ship-owners/charterers to meet compliance mandates set by the EU and IMO.

MT: Why has Argus developed its own B24 Singapore price index? What's so special about it and why should the industry adopt it as a benchmark?

Argus was the first to launch its spot B24 delivered on board (DOB) Singapore assessment in January 2023, thus introducing price discovery for this market at its point of inception. The past 1.5 years of daily price assessments of B24, using a robust market survey approach, has built Argus’ understanding of this market from the start.

We have seen the growth of liquidity and the quest among refiners, traders, ship-owners to find pricing solutions for a nascent market. We have been at the forefront of capturing spot liquidity growth and in assessing prices for this market.

This index is now considered a key price assessment by key refiners, traders, ship-owners and other stakeholders in the market.

MT: What takeaways can each segment of the bunkering sector such as bunker buyers, bunker traders, and shipowners receive from the upcoming Argus B24 forum?

The Argus B24 Asia Forum is aimed at showcasing some of these learnings by a global team that covers key markets like Singapore, China and Europe. Our global team will present their insights on the key trends driving demand for marine biodiesel globally.

As the marine sector marches onwards with the bunkering of higher biofuel blends, this forum will allow the audience to reflect on the key factors that have driven the marine biodiesel sector. It will provide insights to make better decisions about infrastructure, pricing, feedstock-related issues and what blends are likely to be prevalent in the coming year.

We will be hosting a panel discussion at this forum that will include key players driving the marine biodiesel space in Singapore and other regions.

The Argus Asia B24 Forum will be held in The Village Hotel (The Events Centre by Far East Hospitality), Sentosa, Singapore (Google Maps) on 8 October between 4.00pm to 7.00pm Singapore Time.

Participants are encouraged to register for the free event via the custom link here.

Photo credit: Argus Media
Published: 4 October 2024

Bunker Fuel

Brazil: Raízen launches new bunkering operation in Itaqui

Operation will support both coastal and oceangoing vessels at Off Port Limits, allowing the firm’s customers to avoid full port call fees and unnecessary deviations, says Paula Georgopoulos Tinoco.

Published

1 day ago

October 4, 2024

Admin

Brazil: Raízen launches new bunkering operation in Itaqui

Brazilian energy firm Raízen has launched its new bunkering operation in Itaqui at the Outer Anchorage Area, according to Paula Georgopoulos Tinoco, Bunker Sales Coordinator at Raízen on Wednesday (3 October).

The firm is providing local supplies for the grades VLSFO380 (max. 0.5%S) and LSMGO DMA (max. 0.1%S).

“The new bunkering operation will support both coastal and oceangoing vessels with different sizes and class at the Off Port Limits, allowing our customers to avoid full port call fees and unnecessary deviations at different bunkering ports,” she said in a social media post.

In September last year, Bunker Holding subsidiary Bunker One announced that it partnered with Acelen, the largest bunker producer in the Brazilian state of Bahia, to offer the only outer anchorage bunkering operation in Brazil at the time.

Starting September 2023, vessels such as large cargo ships and tankers can be supplied in the anchorage area of the Port of Itaqui in São Marcos Bay (MA).

Photo credit: Raízen
Published: 4 October, 2024

Business

Rahim Oberholtzer named as new Infineum Chief Financial and Strategy Officer

Oberholtzer, a finance executive with over 25 years of experience, joins Infineum from Shell, where he has held various senior positions including Senior Vice President of Shell Finance for Chemicals and Products.

Published

1 day ago

October 4, 2024

Admin

Rahim Oberholtzer named as new Infineum Chief Financial and Strategy Officer

International fuel additives company Infineum on Thursday (3 October) announced the appointment of Mr. Rahim Oberholtzer as the new Chief Financial and Strategy Officer, effective 1 October.

Oberholtzer will succeed Mr. Philippe Creteur, who has retired at the end of September 2024, after 18 years of dedicated service to Infineum.

Oberholtzer, a seasoned finance executive with over 25 years of diverse experience, joins Infineum from Shell, where he has held various senior positions. His most recent role was Senior Vice President of Shell Finance for Chemicals and Products.

During his career, Oberholtzer has acquired extensive expertise in public accounting, investment banking, and trading. He began his professional journey at KPMG in San Francisco as an auditor. He then moved on to Merrill Lynch, focusing on mergers and acquisitions and equity offerings within the energy sector, ultimately serving as Head of Structured Finance at Merrill Lynch Commodities.

In 2011, he joined Shell’s Mergers and Acquisitions team in the U.S., leading key projects such as the launch of Shell Midstream Partners and the Eagle Ford divestment. He subsequently managed finance teams in Trading & Supply, covering European Gas & Power, Global Crude, and Global Products & Operations.

Infineum CEO Aldo Govi, said: “We are deeply grateful for Philippe’s years of dedication and excellent contribution to Infineum. At the same time, I am thrilled to welcome Rahim to our corporate leadership team.”

Photo credit: Infineum
Published: 4 October, 2024