Platts proposes to launch Singapore bio-bunker fuels market-based assessment

Platts, part of S&P Global Commodity Insights, on Tuesday (23 April) proposed to launch a new daily market-based delivered Singapore bio-bunker assessment, effective 1 August.

This proposal is on the back of growing interest for blended bio-bunkers in Singapore, the world’s largest bunkering hub, amid increasing pressure on the shipping sector to decarbonise.

The new assessment would reflect marine fuel blend of biodiesel with low sulphur fuel oil. Platts would publish the Singapore bio-bunkers market-based assessment as a differential to Platts Marine Fuel 0.5% (AMFSA00), and as an outright value.

The assessment specifications would be as follows:

Other delivery periods and volumes may be considered in the Platts Market on Close assessment process and normalised back to the above specifications.

Bio-bunkers stems must be incompliance with the EU’s Renewable Energy Directive, or RED requirements, and meet sustainability requirements such as ISCC or RSB sustainability criterions.

Platts will not consider bio-bunkers that use palm oil as a bio-component.

International Organization for Standardization is revising the ISO 8217 standards to include additional requirements for blended bio-bunker. The assessment would reflect standards set in the document ISO 8217:2024 Petroleum products — Fuels (class F) — specifications of marine fuels, as well as standards set by Singapore’s Maritime Port Authority on specifications of marine biofuels (WA 2:2022). Platts is seeking specific feedback on these standard requirements.

Platts is also seeking specific feedback on the reference density of blended bio-bunkers.

The assessment would be published on Platts Biofuels Alert (PBF2500), in the Bunkerwire Report, Bunkerwire Monthly, Biofuelscan report and Biomass-Based Diesel Report.

The new daily bio-bunkers assessment would be timestamped to 5.30 pm Singapore time and follow the Singapore publishing schedule.

Platts spot price assessments consider market information reported to Platts and published throughout the day, including firm bids and offers, transactions and indications of value. In the absence of observable spot market activity, Platts may consider other verifiable data reported. This information will be published as price heards.

At present, Platts publishes a daily cost-based B24 Singapore bio-bunkers assessment reflecting a ratio of 76% fuel oil based on Platts benchmark Marine Fuel 0.5% Bunker Dlvd Spore $/mt assessment (MFSPD00) and 24% used cooking oil methyl ester based on the Platts UCOME FOB Straits $/mt assessment (UCFCB00). This calculated price assessment will continue to be published alongside the proposed new assessment and will be renamed “Platts B24 calculated bio-bunker Singapore.”

Related: Platts launches new blended bio-bunkers assessment in Singapore

Photo credit: Justin Lim on Unsplash
Published: 25 April 2024