Marine fuels testing company VPS on Tuesday (10 December) shared more on a newly released paper on FAME bio bunker fuel from its latest collaboration with Global Centre for Maritime Decarbonisation (GCMD): 

The Biofuel Detectives - The Proof is in the Testing

Sustainability is fast becoming a common term within today’s society, certainly when linked to global decarbonisation. The world’s population has become increasingly more aware of the human carbon-footprint and the need to reduce green-house gas emissions.

As an industry, world shipping is not exempt and levels of environmental legislation and directives being placed upon this sector are rapidly multiplying in order to achieve net-zero-carbon dioxide (CO2) pollution. Due to this increasing drive to reduce shipping’s global emissions, the move away from the use of traditional fossil fuels is gathering momentum and heading towards using alternative low-to-zero carbon fuels.

One such fuel type is biofuel and in particular FAME-based biofuel. Whether it be 100% FAME, or blends of FAME with traditional marine fossil fuels, FAME, or Fatty Acid Methyl Esters, to give the full name, provides an immediate option to reduce shipping’s CO2 emissions.

However, how can it be proven that the bio-component of the biofuel, is truly sustainable?

A newly released paper detailing ground-breaking, innovative research and development through a collaboration between the Global Centre for Maritime Decarbonisation (GCMD) and the world’s leading Maritime Decarbonisation Testing and Advisory Services company, VPS, provides the solution.

The paper, entitled Rapid Forensic Analysis of FAME-based Biofuels is now available on the GCMD’s website.

The paper highlights how VPS’ extensive experience in marine fuel analysis and considerable expertise in the use of the high-end forensic analytical technique, gas chromatography (GC), can be utilised to identify the true source of the bio-component (the oil). This newly developed, unique proprietary test method from VPS, can be applied to all FAME-based biofuels, both 100% (B100) and blends, eg B30. This identification helps to determine whether or not, the FAME is produced from a sustainable source. 

It should be noted that not all FAME-based Biofuels have the same properties and since suppliers do not indicate the source oil, testing is so important to understand these properties. This is becoming increasingly important as the availability of FAME is driving suppliers to source FAME-based biofuels from an increasingly wide variety of exotic source oils.

VPS is now in a position to offer this unique and vital service to its customers, as a further means to support shipowners and operators in their drive to be compliant with both global and regional environmental legislation and ensure traceable sustainability of their operations.

The GCMD-VPS collaboration is proving to be a partnership which is delivering key solutions to the maritime sector, as shipping moves to becoming a truly sustainable industry.

Related: Singapore: GCMD introduces new technique for FAME bio bunker fuel fingerprinting

Photo credit: VPS
Published: 11 December, 2024

Glander International Bunkering (Glander) on Monday (9 December) said it arranged the successful supply of 250 metric tonnes (mt) of B24 biofuel blend with SK Trading International in Singapore. 

Glander said the collaboration marked an important step toward reducing carbon emissions in the maritime industry.

The delivery was made possible through SK Trading International, a supplier in Korea and Singapore. The delivery aligns with SK Trading International strategy, which aims to position the company as a global leader in the energy transition.

Dimitris Mertikas, Key Account Manager at Glander International Bunkering, said, “In this landscape, our Key Accounts team has positioned itself next to our customers, supporting them with the help of our trusted suppliers on the journey to new fuels every step of the way – from trial to adoption, one ship at a time. We will continue working closely with both our suppliers and clients to achieve our mutual environmental goals.”

Currently, Glander International Bunkering is capable of supplying second-generation biofuels in more than 100 ports worldwide.

“As the shipping industry increasingly prioritises decarbonisation, collaborations like this are expected to grow, solidifying Glander International Bunkering’s position as a leader in the transition to new fuels,” the firm added.

Photo credit: Manifold Times
Published: 10 December, 2024

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:

9 December 2024

• LNG premiums have soared
• Singapore’s LNG up to premium over B24-LSMGO
• Bio-bunker prices drop in key bunker ports

While VLSFO-equivalent prices for LNG and B24-VLSFO have shown little change over the past week, they have shifted sharply in the past month. LNG, which previously traded at a discount to B24-VLSFO, now commands a substantial premium in major ports like Rotterdam and Singapore.

Rotterdam’s LNG holds a significant $70/mt premium over its B24-VLSFO HBE price, compared to a $61/mt discount last month. Similarly, Singapore’s LNG has flipped from a $52/mt discount to an identical $52/mt premium over its B24-VLSFO UCOME price in the past month.

Singapore’s LNG has even climbed to a narrow $1/mt premium over its B24-LSMGO grade, a reversal from its $20/mt discount last week and $89/mt discount last month.

Meanwhile, LNG now stands at a whopping $228/mt premium over pure VLSFO in Rotterdam. In Singapore, LNG is $208/mt more expensive than pure VLSFO. LNG's premiums have jumped by more than $100/mt in a month.

VLSFO

VLSFO prices in Singapore and Rotterdam have remained almost unchanged in the past week. Rotterdam has seen a $3/mt gain, while Singapore has witnessed a $4/mt drop.

Availability of VLSFO remains tight in Singapore, where 10 days of lead time is recommended.

Supply pressures have eased slightly across VLSFO, LSMGO and HSFO grades in the ARA this week, a trader told ENGINE. VLSFO availability has returned to normal in the past week, with lead times of 3-5 days advised for the grade.

Biofuels

Singapore’s B24-VLSFO UCOME price has shed $3/mt in the past week, while its B24-LSMGO UCOME price has decreased by a sharp $15/mt. The bigger drop in the B24-LSMGO price is partly because of a $19/mt decline in the underlying ENGINE conventional LSMGO price.

The strengthening of used cooking oil (UCO) prices in China has exerted upward pressure on UCOME export prices, PRIMA Markets said.

Rotterdam biofuel benchmarks have almost mirrored the declines seen in Singapore. The B30-VLSFO HBE price in Rotterdam has edged down by $3/mt, while the B30-LSMGO HBE price has declined by a sharp $17/mt.

LNG

Rotterdam's LNG bunker price has dropped by $8/mt to $877/mt in the past week. The downward trend reflects a corresponding decrease in the underlying Dutch TTF Natural Gas contract. While European gas prices have dipped, colder-than-average temperatures across Northern Europe are expected to limit further price drops.

Singapore's LNG bunker price has gained by $6/mt in the past week, tracking gains in the NYMEX Japan/Korea Marker (JKM) contract. Despite a forecast for colder weather in Northeast Asia next week, demand prospects remains subdued for the near term.

By Konica Bhatt, Nithin Chandran and Debarati Bhattacharjee

Photo credit and source: ENGINE
Published: 10 December, 2024