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Glander International Bunkering highlights regulations driving up bio bunker fuel uptake

Increased regulations in shipping means biofuel use is heavily incentivised in the short term as use of conventional fuels becomes more constrained by regulatory costs, says firm.

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Global bunker trading firm Glander International Bunkering, which recently received ISCC EU and ISCC Plus certificates for its biofuel operations in Norway and Geneva offices, continued its guide on what to look out for when procuring biofuel bunkers, focusing on volumes as well as regulations in this article:

Biofuels have rapidly emerged as one of the most popular alternative marine energy choices over the past few years as the shipping industry bears down on its greenhouse gas emissions.

The advantages of using biofuels are clear: they work as a drop-in alternative to conventional bunkers, with little or no changes needed to ships’ engines or delivery infrastructure to use them, and result in net reductions in GHG emissions based on their full lifecycle assessment when produced from second or third generation (sustainable) feedstocks.

Biofuels already help buyers today meet their ESG targets and will soon be one of the solutions to meet the mandatory blend-in requirements as set out in the FuelEU Maritime Regulation, starting in 2025.

Bunker buyers can take on these fuels immediately, without significant up-front investment or any long-term commitment to them.

Biofuel volumes

Demand for these fuels has grown rapidly during the past months. Rotterdam saw 791,000 mt of sales for biofuel/marine fuel blends last year, up by 163% from 2021, while Singapore kicked off biofuel sales in 2022 with 140,000 mt of blended product sold in total. The main products in ARA are B30 and in Singapore B24, which means 30% respectively 24% of biofuel blended with conventional marine fuel. The fuels are already available at a wide range in other ports, and volumes can be expected only to climb in the coming years.

These sales initially came in the course of trials from shipping companies looking to try out the fuels in their engines on a one-off basis, but regular sales are now increasingly being seen.

The first thing to note about biofuels in the marine fuel space is that when we talk about them, it’s almost always blends being referred to, typically with up to about 30% biofuel content mixed with VLSFO, HSFO or MGO. Higher ratios of biofuel content, even up to 100%, have been shown to work in conventional engines but are as yet rarely used.

Regulations driving biofuel uptake

There is no doubt that one of the main drivers for the shipping industry’s transition towards carbon neutrality is the increasing and rapidly developing regulatory requirements.

Firstly, IMO has now set a firm target for reaching net-zero greenhouse gas emissions from international shipping approaching the year 2050.The target includes checkpoints for 2030 and 2040 of 20 and 70% respectively absolute reductions (striving for 30% and 80%). In addition, the uptake of zero or near-zero fuels are to represent at least 5% by 2030. Consequently, the shipping industry cannot just wait until 2050, but will be working on reaching these targets already now. The targets of absolute emissions reductions can only be reached by transitioning from traditional to alternative fuels.

Secondly, the CII regulations has now entered into effect. From this year all vessels larger than 5,000 GT will have calculated for them a CII rating based on historical data submitted to the IMO. The rating is a calculation of the CO2 the vessel emitted per unit of cargo capacity per nautical mile.

The rating will come as a letter between A and E, with A at the top of the scale, and ratings will be determined on an annual basis. Ships receiving a D rating for three years or an E rating for a single year will need to implement a corrective action plan as part of the ship energy efficiency management plan (SEEMP) setting out their plans to improve their performance and rating. Alternative fuel such as biofuel will have a significant positive impact on the rating.

Finally, IMO is set to adopt further regulation – such as a price on carbon emissions as well as a green fuel standard – in the coming years to further drive the transition.

But separately from the global effort on decarbonisation led by the IMO, the European Union has also been pursuing its own regulatory agenda.

Last year the EU came to a deal on including shipping within the union’s emissions trading system (ETS). All ships over 5,000 GT in size will be included in the ETS, covering 100% of CO2 emissions from intra-EU voyages and 50% of emissions from voyages between EU ports and the rest of the world. In practice, this means that all vessels calling a European port will be affected by the EU ETS.

The system will be phased in starting in 2024 with 40% of emissions covered, 70% in 2025 and 100% from 2026 onwards. Shipping companies will be required to buy an equivalent number of “EU Allowances” (representing one tonne of CO2 emissions) to match their annual total fleet emissions, and deliver these to the authorities each year.

Europe also has a separate regulation called FuelEU Maritime, which will require shipping firms to gradually incorporate renewable fuels in their bunker purchases in order to lower the GHG intensity of the fuel burned. Like the ETS it is a gradually phased in system with the same coverage in terms of ship size and geographical scope. Meanwhile, the FuelEU Maritime sets requirements not only for CO2, but for other greenhouse gases as well.

These regulatory drivers are just the start; further developments can be expected from the IMO in the coming years, and over the longer term the US and China may also seek to impose their own rules if they are dissatisfied with the global regulations.

All of this will mean biofuel use is heavily incentivised in the short term as the use of conventional fuels becomes more constrained by regulatory costs.

Related: Glander International Bunkering provides guide on buying bio bunker fuels

Photo credit: Glander International Bunkering
Published: 28 August, 2023

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Milestone

China: Xiamen port records 16.37% jump in bunker sales volume in 1H2025

Total of 416 international ships, an increase of 6.12% on year, received marine fuel in bunkering operations during the same period.

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Xiamen port bunkering

The Port of Xiamen recorded bonded bunkering volume of 274,500 metric tonnes (mt) in the first half (1H) of 2025, representing a jump of 16.37% on year, reported Xiamen Daily on Thursday (10 July).

A total 416 international ships, an increase of 6.12% on year, received marine fuel in bunkering operations during the same period.

The report noted Xiamen Port to be increasing bunker players while optimising its bonded marine fuel supply chain system in recent years.

Before February 2025, there were only two bonded bunker fuel suppliers with national licenses operating at Xiamen Port.

The port welcomed Xiamen Kunlun Fuel Oil [厦门昆仑燃料油] as a new marine fuel supplier on 1 February; the company was awarded the first Xiamen local license by both Xiamen Customs and the local government.

Followingly, Xiamen Kunlun Fuel Oil performed its first bonded bunkering operation at Xiamen port on 26 February.

Xiamen Port earlier launched a pilot programme called “two warehouse functions superposition” which combines the functions of both bonded oil storage warehouse and export supervision warehouse into one unit.

Using just a single oil storage tank allows bunker fuel suppliers at Xiamen to save on renting tanks, reduce time spent on tank unloading, improve utilisation rates, and shorten bunker delivery times.

Related: PetroChina subsidiary wins first bonded bunkering licence in Xiamen

 

Photo credit: Xiamen Port Authority, China
Published: 11 July 2025

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Newbuilding

China: Steel cutting ceremony for methanol bunkering tanker “Lucia Cosulich” held

A steel cutting ceremony was held for the 7,999 DWT IMO Type 2 chemical bunker tanker at Taizhou Maple Leaf Shipyard, China.

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Lucia Cosulich

Fratelli Cosulich Marine Energy on Wednesday (9 July) announced the steel cutting ceremony of Lucia Cosulich, a 7,999 DWT IMO Type 2 chemical bunker tanker – the second vessel in a series of four – at Taizhou Maple Leaf Shipyard, China.

“This milestone marks another bold step in our Marine Energy business unit’s commitment to clean fuel readiness and operational excellence,” said the company.

The vessel will be fully methanol-ready, capable of carrying, burning, and bunkering methanol safely and efficiently, with full regulatory compliance standards.

It will feature an integrated Nitrogen Generator System, ensuring safe and inert tank operations at all times. Equipped with advanced safety systems specifically engineered for low-flashpoint fuel handling, the vessel sets a new benchmark in future fuel readiness.

A complete methanol bunkering setup will come as standard, including the Quick Connect/Disconnect Couplings (QCDC), dedicated transfer lines and comprehensive monitoring and control systems to ensure efficient and secure fuel handling.

“Built on state-of-the-art architecture, she is designed not only to meet but to exceed the evolving demands of tomorrow’s energy supply chain,” noted the firm.

Lucia Cosulich embodies our vision to lead the transition within the maritime fuel landscape.”

 

Photo credit: Fratelli Cosulich
Published: 11 July 2025

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Financial Result

Glander International Bunkering reports EBT of USD 22 million for FY2025

‘This fiscal year, we focused on staying close to our clients, while adapting to a fast-changing market,’ says CEO Carsten Ladekjær.

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Glander Result 2024 2025 MT

Global bunker trading and energy solutions provider Glander International Bunkering on Thursday (10 July) posted financial results for the year ended on April 30, 2025 – reflecting stable performance amid ongoing changes in global maritime and regulations.

The company reports a turnover of USD 3 billion and earnings before tax (EBT) of USD 22 million, including a non-recurring item.

“These results demonstrate consistent performance compared to the previous fiscal year, as the company continues to focus on conventional fuels, new fuels, risk management and extensive global reach,” CFO David Varghese comments.

Navigating change in maritime

Throughout the 2024-25 fiscal year, the bunker industry faced critical challenges including the escalation of the US-China trade conflict, ongoing Red Sea and Suez Canal security risks, and the first full-year impact of the EU Emissions Trading System (EU ETS) for maritime shipping.

Compliance with IMO CII measures and the uptake of new fuel products also influenced bunker demand patterns and pricing strategies.

“This fiscal year, we focused on staying close to our clients, while adapting to a fast-changing market,” says CEO Carsten Ladekjær. “In a time of uncertainty and transformation, we focused on staying agile, supporting customers with conventional fuels, and laying the groundwork for new fuel solutions.”

New fuels and other key achievements

Glander International Bunkering made significant progress in 2024-25: completing bioLNG deliveries, expanding biofuel supply, and launching a compliance calculator to help customers navigate FuelEU Maritime. Compared to the previous fiscal year, the company achieved a 71% increase in biofuel volume and 85% increase in LNG volume, along with the sale of nearly 100,000 EUAs.

Other achievements throughout the year include the renewal of its ISCC certifications, membership in the Smart Freight Centre, and Great Place to Work certification for the 7th consecutive year.

Looking ahead, Ladekjær says, “We will do what we have always done since 1961– adapt to new changes and be there for our clients.” He added that Glander International Bunkering is prepared for the next phase of change in global shipping, as decarbonisation, regulatory expansion and geopolitical developments continue to shape the bunker fuel market.

 

Photo credit: Glander International Bunkering
Published: 11 July 2025

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