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.

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

Photo credit: Argus Media
Published: 4 October 2024

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).

Related: Brazil: Bunker One and Acelen partner to launch bunkering operation outside Port of Itaqui

Photo credit: Raízen
Published: 4 October, 2024 

A new report released on Thursday (3 October) by the Zero Emission Maritime Buyers Alliance (ZEMBA) and Lloyd’s Register Maritime Decarbonisation Hub found that e-fuel-powered shipping services are projected to be available for ZEMBA’s next tender. 

Specifically, the report – which summarises the findings from a request for information (RFI) that the two organizations co-ran earlier in 2024 – found sufficient predicted supply of both e-methanol and e-methanol-capable vessels in the container segment to support ZEMBA’s focus on e-fuel deployment. 

ZEMBA’s next tender is expected to launch in early 2025, with the aim to purchase the environmental attributes associated with e-fuel powered services starting in 2027.

“ZEMBA's aim is to open the door to new and increasingly scalable solutions through each of our tender processes,” said Ingrid Irigoyen, President and CEO of ZEMBA.

 “Because there are scale limitations to those low carbon fuels that rely on biogenic feedstocks, rapid deployment of hydrogen-derived e-fuels this decade is crucial to ensure that the maritime sector gets on a 1.5 aligned pathway toward full decarbonisation by 2050, at the latest.

“We’re pleased that the RFI results suggest that the maritime sector will be ready to provide ZEMBA’s climate-leading freight buyer members with e-fuel powered shipping for our next tender.” 

Nearly 50 ship operators and fuel suppliers from around the world responded to the ZEMBA RFI, which was intended to assess the market readiness of commercial deployment of e-fuels in shipping. 

The report focuses on the implications of the RFI's results for ZEMBA’s next tender and how these findings relate to overarching trends in commercial deployment of e-fuels in the maritime sector. The RFI did not ask about the projected cost or price of e-fuel-powered services.

“The results of the RFI offer a valuable glimpse into the emerging market for e-fuels and e-fuel-capable vessels,” said Dr Carlo Raucci, Director of Sustainable Fuels and Strategy at Lloyd's Register Maritime Decarbonisation Hub. 

“Despite the current gap between e-fuel supply and vessel availability, it's encouraging to see the potential for e-fuels to make a significant impact on the maritime sector. We're excited to collaborate with ZEMBA on their second tender, which could be instrumental in driving the widespread adoption of scalable e-fuels in shipping.”

ZEMBA’s upcoming tender builds upon lessons learned during its inaugural tender, which was successfully completed in April 2024. Global carrier Hapag-Lloyd was the winner of the first tender and is supporting members to collectively avoid at least 82,000 metric tonnes of CO2e in 2025 and 2026. 

The majority of RFI respondents predicted that commercial e-fuels deployment in the maritime sector would be feasible starting in 2027 and 2028, with limited deployment potentially as early as late 2026. However, in the next few years, the RFI results identified a mismatch in the supply of certain e-fuels and corresponding e-fuel capable vessels on a fuel-by-fuel basis. 

Containerships capable of operating on e-methane are already available now, but the RFI found no e-methane production projects post-final investment decision (FID). 

Conversely, e-ammonia production projects under construction appear to be sufficient to meet ZEMBA’s estimated demand, but the first e-ammonia-capable containerships are unlikely be on the water by 2027. 

The RFI suggests e-methanol is the most likely pathway for ZEMBA’s next tender because of alignment between sufficient projected e-methanol fuel production and e-methanol-capable containership vessels on the water in 2027. 

However, across fuel types, the report highlights that a significant number of e-fuel projects remain at pre-FID stage, casting doubt on whether those projects would begin production on their projected timelines and, related, if e-fuel-capable dual fuel vessels will actually run on e-fuels. 

One finding from ZEMBA’s inaugural tender was that announcements for e-fuel development projects often do not correlate to commercial readiness within predicted timeframes. ZEMBA received no e-fuel-powered bids for its first tender. 

Commitments from ZEMBA members for e-fuel-powered shipping services through the next tender will aim to provide encouragement to ship operators and others across the maritime value chain to enter into longer term offtake e-fuel contracts of their own. 

ZEMBA intends to announce details about its next e-fuel-focused tender before the end of 2024, with the aim to solicit bids in early 2025. Ahead of this tender, ZEMBA is recruiting additional climate-leading companies who are seeking to credibly reduce their Scope 3 emissions, manage long-term cost of the energy transition, and kickstart a zero-emission market in the maritime sector. 

Note: The report can be found here.

Photo credit: Chris Pagan on Unsplash
Published: 4 October, 2024