In an exclusive interview with Singapore-based bunkering publication Manifold Times, Morten Østergaard Jacobsen, Managing Director Asia of international bunkering firm Monjasa, recently highlighted the company’s next steps in biofuel and other alternative marine fuels following its inaugural biofuel bunkering in Singapore as well as the importance of International Sustainability & Carbon Certification (ISCC) EU certificate and Proof and Sustainability:

MT: Could you share with us your recent biofuel delivery milestone in Singapore?

Monjasa supplied 2,000 metric tonnes (mt) of B24 to container vessel YM Wonderland on 24 July 2024. The supply was organised and supplied by Monjasa using barge MT Radiance, which is one of three barges controlled by Monjasa in the Port of Singapore.

MT: Following Monjasa’s inaugural biofuel bunkering operation at Singapore port on 24 July, what long term plans does the firm have to expand its biofuels bunkering foothold at the world’s largest bunkering port?

We are pleased to have successfully sourced, shipped and delivered biofuels in the Port of Singapore for the first time. An important milestone for our seafarers, trading and operations departments towards enabling the low-carbon fuel mix.

Looking at the overall biofuels landscape in Singapore, we expect to see more and more inquiries, not least because of our global operations and 15 offices which enables us to organise biofuels supplies on a string of supply locations across the Americas, Europe, the Middle East and Asia.

MT: Why is it necessary for bunkering firms to obtain ISCC EU certification and Proof and Sustainability (PoS) documents for biofuel bunkering operations worldwide?

We believe that there are several advantages of being ISCC-certified and able to issue a PoS along with a biofuel delivery. The PoS is for shipowners the first step towards compliance with maritime decarbonisation legislation, as it provides a credible and verified account of the emission savings associated with the biofuel product.

MT: Do scenarios exist where biofuel bunkering operations can be conducted without the above credentials? And what are the risks shipowners take when they lift a biofuel bunker stem without these credentials?

It is not a legal requirement to be ISCC-certified or issue a PoS with a biofuel delivery. At the end of the day, it is the responsibility of the shipowner to document savings, which is not possible without a PoS. The risks linked to delivering a non-certified product is that the product does not live up to expected standards.

In the biofuels feedstock market, products can easily be claimed to be sustainable, but it is the PoS that ensures the product is in fact sustainably produced, sourced, etc. This is why the ISCC system brings value by verifying the supply chain.

MT: Aside from PoS documents, what other checks does Monjasa conduct to ensure biofuels supplied comes from legitimate sustainable sources?

In addition to the ISCC, Monjasa conducts internal due diligence with respect to our ISO standards, including HSEQ and compliance evaluations. We also conduct prior checks of suppliers on certification alignment with the ISCC database.

MT: Even though palm-based biofuel is not recognised by the EU as a sustainable energy source, the product may still be useful as a bunker fuel for ships travelling outside EU. Will Monjasa consider including palm-based biofuel within its product portfolio for clients plying non-EU routes? And what are the commercial benefits in doing so?

In general, Monjasa will deliver the product requested by a customer, but if the feedstock is not RED-compliant, we are not able to issue a PoS along with the delivery.

MT: Since biofuels are produced from a variety of sources, how does Monjasa balance interests between clients choosing biofuels produced from particular feedstocks given limited avails while ensuring quality in these cases? 

Monjasa seeks to establish supply chains, where there is availability and demand, for it to make commercial sense. Yes, there is limited availability of certain types of biofuels, which means we sometimes have to source from multiple suppliers to establish one delivery and meet customer requirements.

ISCC does not ensure quality. This is ensured through other standards, such as the ISO 8217. Currently, there is no universal reference to an industry standard, but we are hopeful that the recently issued ISO8217:2024 can become a commonly referred to standard for biofuels within the industry. Until then, we continue to observe market developments on biofuel quality standards as well as conduct tests on the products delivered in alignment with the standard preferred by the customer.

MT: Besides biofuels, does Monjasa have any plans to introduce other alternative fuels to the Singapore bunker market?

Our ambition is to remain a relevant trading partner and offer the full fuel mix requested by the shipping industry. Right now, our focus is on educating our colleagues on the new fuel types to ensure that Monjasa is ready to supply these products once a more liquid low-carbon fuels market emerges. But it’s not up to the bunkering industry alone.

We need to work together, shipping companies, suppliers and authorities to establish a viable way forward. Right now, I believe that we are all awaiting further regulation to push demand up and ensure the green shipping transition in due time.

MT: With SIBCON 2024 around the corner, are there any exciting announcements/plans that Monjasa will be sharing on its operations in Singapore and Asia?

We have recently added a third barge, the newbuild MT Zale, to our supply operations in the Port of Singapore, which already consists of MT Zmaga and MT Radiance. As a direct result, we are servicing more customers than ever and seeing a substantial increase in volumes compared to previous years.

Looking at the wider Asian region, we are ready to size new opportunities when the timing is right. Just like we did when expanding to Ho Chi Minh City and Shanghai during the recent years.

Related: Monjasa to add two bunker tankers in Singapore later this year

Photo credit: Monjasa
Published: 28 August, 2024