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ENGINE on Fuel Switch Snapshot: Bio-blends at a hefty price tag

Higher Brent drives VLSFO prices higher; Rotterdam’s LNG back at a discount to VLSFO; bio-blends now much costlier than LNG.
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ENGINE on Fuel Switch Snapshot: Bio-blends at a hefty price tag

Once a week, bunker intelligence platform ENGINE will publish a snapshot of alternative and conventional bunker fuel prices in the world’s two biggest bunkering hubs. The following is the latest snapshot:

  • Higher Brent drives VLSFO prices higher
  • Rotterdam’s LNG back at a discount to VLSFO
  • Bio-blends now much costlier than LNG

VLSFO benchmarks in Rotterdam and Singapore have jumped by $19/mt and $16/mt, respectively, over the past week. A rise in front-month ICE Brent futures has supported VLSFO values upwards.

Rotterdam’s sharp VLSFO price rise has taken the grade from a $13/mt discount to LNG to a $6/mt premium now.

When we include estimated EU Allowance (EUA) costs for voyages between two EU ports, LNG is now $12/mt cheaper than VLSFO in Rotterdam.

Rotterdam’s B24-VLSFO premium over LNG has gone up by $21/mt in the past week, to $180/mt. B24-VLSFO is $170-175/mt costlier than LNG when we add estimated EUA costs to bunker fuel prices, which penalise biofuel blends slightly less than LNG.

This means that fossil LNG is a much cheaper alternative to B24-VLSFO blends for ships with dual-fuel engines bunkering in Rotterdam. And this is true even when we include the estimated costs of complying with the EU ETS regulation.

HSFO remains the most affordable option for scrubber-fitted ships.

VLSFO

Brent futures rose above $87/bbl on Friday, supported by mounting tensions between Israel and Hezbollah and concerns that global oil supplies could be disrupted by a broader conflict in the Middle East.

This increase appears to have boosted Singapore and Rotterdam’s VLSFO prices.

Availability of the grade in Rotterdam remains normal. It has improved a bit in Singapore, with suppliers indicating lead times of 4-9 days, compared with 7-17 days the week prior.

Biofuels

Biofuel bunker blend prices in Rotterdam and other ARA ports are up by $20-21/mt with support from rising values for both conventional (+$19-20/mt) and bio (+$23/mt) components.

The price of B30-VLSFO UCOME ARA has risen in tandem with that of B30-VLSFO HBE Rotterdam in the past week, and the UCOME blend is still unattractive at a $67/mt premium over the rebated HBE price.

UCOME-based B24-VLSFO is the go-to biofuel bunker grade in Gibraltar and Algeciras, and it has risen by $19/mt in the past week. That widens its premium over Singapore’s equivalent grade to $67/mt.

Singapore’s $13/mt gain for B24-VLSFO outcompetes its B24-LSMGO grade but is still far off the price gains we have seen in the ARA in the past week.

A B24-VLSFO deal was reported in Singapore on Monday at $729/mt, or $8/mt below the benchmark from Friday. No further details of the stem’s size or lead time are known, but it was priced considerably lower than another indication of $745/mt in the market.

LNG

Rotterdam’s VLSFO-equivalent LNG bunker price has remained unchanged at $568/mt in the past week. The bunker price reflects a slight drop in the front-month NYMEX Dutch TTF Natural Gas benchmark, indicating stability in the European gas market.

The price has inched lower by just $1/mt when we take estimated EUA costs into account.

Meanwhile, Singapore’s LNG bunker price has increased by $7/mt in the past week.

A surge in demand across key Asian gas markets can tighten LNG supply, causing suppliers to prioritise deliveries to these high-demand destinations. This can in turn curb availability of LNG for bunkering in Singapore and exert upward pressure on prices.  

By Konica Bhatt

 

Photo credit and source: ENGINE
Published: 2 July 2024

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Biofuel

GREENMARINE and Vertoro to accelerate adoption of lignin-alcohol as marine fuel

Like fossil oil, liquid lignin can be used as a platform for fuel, chemical and material applications.
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3 days ago

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July 11, 2025

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Chuttersnap 1 1 MT

Methanol marine fuels consultancy GREENMARINE and Vertoro, a Maersk-backed Dutch start-up focused on developing liquid lignin technology which can be used as a bunker fuel, has signed an agreement to jointly accelerate the market validation and commercial roll-out of lignin-alcohol as sustainable marine fuels.

“We at GREENMARINE Group are excited to join forces with Vertoro to bring their revolutionary lignin alcohol blend fuel to market,” said Fredrik Stubner, founder and CEO of GREENMARINE Group.

“This breakthrough technology redefines sustainable maritime fuels, delivering environmental benefits and cost efficiencies, paving the way for a greener, more competitive shipping industry.”

Dr. Michael Boot Boot, co-founder & co-CEO Vertoro, replied, “GREENMARINE Group has an excellent track record as a match maker for green fuel producers with engine manufacturers and shipping companies, opening many doors for us on both the fuel validation and offtake side.”

Vertoro, founded in 2017, produces liquid lignin exclusively from sustainably sourced forestry and agricultural residues by means of a patented thermochemical process. Like fossil oil, liquid lignin can be used as a platform for fuel, chemical and material applications.

Related: Maersk invests in Dutch start-up Vertoro to develop green lignin marine fuels

 

Photo credit: CHUTTERSNAP from Unsplash
Published: 11 July 2025

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Newbuilding

Singapore: Pinnacle Marine’s first B100 fuelled utility boat starts 1,000-hour research trial

Newbuilding operated by Prestige Ocean Pte Ltd will capture data on bunker fuel emissions, marine fuel behaviour, and performance.
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5 days ago

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July 9, 2025

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President MT

The 50th vessel constructed by local boat builder Pinnacle Marine (Singapore) Pte Ltd, namely President 100, is starting 1,000 hours of real-time research trials in collaboration with several parties from Wednesday (9 July) onwards, it says.

Powered by B100 biodiesel, the newbuilding operated by Prestige Ocean Pte Ltd will capture data on bunker fuel emissions, marine fuel behaviour, and performance.

It will be participating in trials with Maritime Energy & Sustainable Development Centre of Excellence (MESD), Weichai Singapore, China Classification Society, Pacific International Lines (PTE) Ltd, Abo Shoten, Ltd. / 株式会社安保商店 , Abo Singapore, Wilmar International, Gulf Marine, Amspec Testing & Services, and AYK Engineering and Consulting.

President MT 02

The President 100, Pinnacle Marine’s first full biodiesel utility boat, was launched on Tuesday in the presence of over 100 guests.

“Our latest vessel, President 100, merges legacy and future. Named after our first aluminium boat (“President”) and inspired by B100 biodiesel, it leads the charge for our next 50 vessels — many of which will embrace green technology,” stated Pinnacle Marine in a LinkedIn post.

“The launch was amazing, with strong turnout from across the maritime sector — authorities, shipowners, operators, agencies, chandlers, researchers, offshore engineers, and petrochemical suppliers.”

It added: “We’re excited to see how it paves the way for wider adoption of B100 biodiesel — a cleaner, sustainable path for Singapore’s harbour craft sector.”

 

Photo credit: Pinnacle Marine (Singapore) Pte Ltd
Published: 9 July 2025

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Newbuilding

BHP awards charter contracts for two ammonia dual-fuelled bulk carriers

BHP continues to work with the maritime industry to develop an ammonia bunkering plan for the two vessels when they are delivered from 2028.

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5 days ago

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July 9, 2025

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BHP ammonia DF charters

Global resources company BHP on Wednesday (2 July) signed contracts with COSCO Shipping Bulk Co., Ltd., a subsidiary of COSCO shipping Group (COSCO Shipping) for the charter of two ammonia dual-fuelled Newcastlemax bulk carriers.

The new vessels to be built under this arrangement will be two of only a handful of vessels in the world capable of using ammonia as a bunker fuel.

The two vessels, expected to be delivered from 2028, will primarily transport iron ore from Western Australia to Northeast Asia.

When run on lower or low to zero greenhouse gas (GHG) emissions ammonia, these vessels will be capable of reducing GHG emissions by at least 50% and up to 95% on a per voyage basis compared to a conventionally fuelled voyage.

The five-year time charter contracts are expected to contribute towards a reduction in the GHG emissions intensity of BHP chartered shipping.

BHP continues to work with the maritime industry to develop an ammonia bunkering plan – the process of fuelling ships with ammonia – for the two vessels when they are delivered from 2028.

Sourcing lower and low to zero GHG emissions ammonia is subject to an ongoing tender process.

 

Photo credit: BHP
Published: 9 July 2025

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