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T&E: Biofuels and e-fuels in trucks will make it harder for aviation and shipping to go green

Including biofuels and e-fuels in road transport would reduce available volumes for hard-to-decarbonise sectors, while doing nothing to bring down e-fuel prices for aviation and shipping, says T&E.




RESIZED Chris Pagan

Transport & Environment (T&E) on Tuesday (8 November) said biofuels and e-fuels in road transport would reduce available volumes for hard-to-decarbonise sectors, while doing nothing to bring down e-fuel prices for aviation and shipping. 

In a brief explainer, T&E said the EU climate targets will slash demand for oil and gas. As a result, fuel suppliers are investing in e-fuels and biofuels to replace them. 

“It is in their interest to maximise the number of sales markets for those fuels, despite hard-to-abate sectors such as aviation and shipping needing to prioritise fuels based on green hydrogen (and advanced biofuels in the case of aviation) for their own use,” it said. 

“However, as part of its market maximisation strategy, the fuels industry tries to convince aviation and shipping actors that they would benefit if road transport also used biofuels and e-fuels. They claim that ‘using e-fuels in trucks and buses will help scale up production, reduce their costs, and make them more available for planes and ships’. They also claim that ‘Road hauliers will bear most of the high cost, making e-kerosene almost free for airlines.’ This is incorrect, as this simple explainer will make clear.”

Currently, T&E said fuel suppliers are correctly incentivised to focus on aviation and shipping in the Renewable Energy Directive (REDIII) thanks to multipliers as well as an indicative RFNBO supply target for shipping.

The 1% transport sub-target for RFNBOs can be met by providing the required minimum supply of e-fuels

needed to meet sub-targets under ReFuelEU and FuelEU Maritime, without any need for additional e-fuels to be used in road transport. The aviation and shipping regulations provide the right regulatory incentives to prioritise truly advanced and sustainable biomass feedstocks for hard-to-abate sectors instead of using them to produce liquid and gaseous biofuels for road transport.

“However, opening the door to fuels in road transport could incentivise the exact opposite. If e-fuels

and biofuels are credited in the CO2 standards for heavy-duty vehicles (HDVs), fuel producers would have an incentive to only provide the minimum volume of e-fuels and biofuels to the aviation and shipping sector that is needed to fulfil regulatory sub-targets,” T&E said. 

“They would tool their refineries to the detriment of kerosene output and try to maximise the fuel volume going into road transport. The same logic applies to advanced biofuel feedstocks, where competing uses are already limiting access to sustainable sources, which should therefore be prioritised in non-electrifiable transport modes.”

“The adoption of this crediting system could jeopardise the aviation and shipping industries’ access to sustainable, affordable, and scalable renewable fuels and their chance to cut emissions and move towards climate neutrality.”

Note: The full briefing by T&E can be found here.

Photo credit: Chris Pagan on Unsplash
Published: 9 November, 2023

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LNG Bunkering

Singapore: Pavilion Energy supplies LNG to TFG Marine dual-fuel bunker tanker

“MT Diligence” was refuelled with 34 cubic metres of LNG bunker fuel, supplied by Pavilion Energy, marking the first LNG bunkering of TFG Marine’s bunker vessel.





Singapore: Pavilion Energy supplies LNG to TFG Marine bunker tanker

Global marine fuel supply and procurement firm TFG Marine on Monday (20 May) announced the completion of the first liquefied natural gas (LNG) refuelling of its dual-fuel bunker tanker MT Diligence this week in Jurong Port, Singapore.

The 34 cubic metres (m3) of LNG to power the MT Diligence was supplied by the Marine division of Singapore-headquartered Pavilion Energy. 

“Deploying a vessel that can be powered by LNG as well as conventional low sulphur marine fuels helps TFG Marine to meet its licence requirement with the Maritime and Port Authority of Singapore (MPA),” TFG Marine said in a social media post.

Singapore: Pavilion Energy supplies LNG to TFG Marine dual-fuel bunker tanker

“Built and operated for TFG Marine by CBS Ventures Pte Ltd, the 5,000 dwt MT Diligence has been designed to our technical specifications, including stringent safety considerations and has joined our supply fleet this year in the major bunkering centre of Singapore.”

Manifold Times previously reported TFG Marine christening the first LNG dual-fuel bunker tanker to join its fleet.  

The newbuild vessel, MT Diligence, has joined the company's low sulphur fuel oil and biofuel supply operations in the major bunkering centre of Singapore.

Related: LNG dual-fuel bunker tanker “MT Diligence” joins TFG Marine fleet for Singapore ops


Photo credit: TFG Marine
Published: 21 May 2024

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Bunker Fuel

Bunker Holding, 123Carbon and BV launch carbon insetting solution

Bunker Holding has concluded its first blockchain-powered carbon insetting operation in a new partnership with 123Carbon and Bureau Veritas.





Bunker Holding:Bunker tanker vessel supplying marine fuel to a cargo ship at anchorage

Marine fuel supplier Bunker Holding on Thursday (16 May) said it has concluded its first blockchain-powered carbon insetting operation in a new partnership with carbon insetting experts 123Carbon and Bureau Veritas.

This insetting partnership allows for the additional cost delivery of lower carbon, alternative marine fuels – such as sustainable biofuel – to be shared by carriers, freight forwarders, and cargo owners within the same value chain; allocated based on a globally accepted book and claim methodology.

“We’re excited to work with 123Carbon and Bureau Veritas, as we believe in complete transparency of how insets are created and transferred. Insetting is not new, but one concern within the maritime sector is under what circumstances alternative fuels are supplied, and who owns the emissions reductions,” said Tobias Troye, Head of Carbon Solutions at Bunker Holding.

By combining its alternative fuel supply expertise, its global access to low-carbon fuels and extensive carrier network with 123Carbon’s secure platform, Bunker Holding said it can offer carriers, freight forwarders, and cargo owners complete transparency and assurance regarding how their insets reduce maritime emissions.

“We are delighted that Bunker Holding not only uses our advanced platform for the issuance of the certificates, but has also chosen a fully branded solution to deliver the certificates in a secure environment to its customers,” said Jeroen van Heiningen, Managing Director of 123Carbon.

Working with 123Carbon’s blockchain-based insetting platform, and Bureau Veritas as third-party assurance partner to verify the fuel intervention and all related documentation, ensures that all insets are issued according to Smart Freight Centre’s Book & Claim methodology and 123Carbon’s assurance protocol.

To facilitate the intervention, Bunker Holding connected three different parties: the cargo owner, who wishes to reduce their scope 3 emissions and is willing to pay the “green premium”, the ship operator, to decarbonise its vessels through the use of biofuels, and the biofuel supplier, to deliver safe, high-quality low-carbon fuels. Due to the commitment from the cargo owner to purchase scope 3 insets, Bunker Holding was able to offer the biofuel at a more competitive cost to the ship operator, enabling the carrier to use biofuels instead of conventional fossil fuels.

“As a group, we are operationalising our decarbonisation strategy, and one key component has been to develop our alternative marine fuel supply capabilities, among others by securing fully certified biofuel availability in more than 100 ports around the world. The relative higher cost of alternative fuels may still prevent carriers to bunker it. However, carbon insetting helps bridge that gap, as it enables cost sharing and also sends an important demand signal to alternative fuel producers to scale up production,” said Valerie Ahrens, Senior Director of New Fuels and Carbon Markets at Bunker Holding.


Photo credit: Bunker Holding
Published: 21 May 2024

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Bunker Fuel

ENGINE on Fuel Switch Snapshot: LNG rises towards VLSFO

Singapore’s LNG bunker price soars; bio-premiums over LNG narrow substantially; VLSFO benchmarks remain stable.





ENGINE on Fuel Switch Snapshot: LNG rises towards VLSFO

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:

20 May 2024

  • Singapore’s LNG bunker price soars
  • Bio-premiums over LNG narrow substantially
  • VLSFO benchmarks remain stable

Rotterdam's fossil LNG bunker price has edged closer to its VLSFO by $7-8/mt over the past week, now making it 54-66/mt cheaper than VLSFO.

The price gap between LNG and VLSFO has narrowed even further by $34/mt in Singapore because of the sharp rise in LNG bunker price. LNG bunker price in Singapore is now at a $30-36/mt discount to its VLSFO, depending on whether the estimated EU Allowance (EUA) costs are added to their bunker fuels costs.

Singapore’s biofuel price premiums over fossil LNG has narrowed by $41/mt to $142/mt in the past week. In Rotterdam, the bio-bunker premium over LNG has narrowed by $14/mt to $179/mt.

B24-VLSFO price premiums over pure VLSFO are $125/mt in Rotterdam and $113/mt in Singapore.


Rotterdam’s VLSFO benchmark inched $1/mt lower in the past week. When we add estimated EUA costs, there is only a slight decline of $1-2/mt, depending on whether we are looking at voyages between EU ports or between EU ports and non-EU ports.

VLSFO availability remains good in the wider ARA hub. Lead times of 3-5 days are currently advised for the grade in Rotterdam, down from 4-5 days seen earlier, a trader said.

Singapore’s VLSFO benchmark also remained relatively steady in the past week, with a modest $4/mt decline.

VLSFO availability has improved in Singapore, with most suppliers suggesting lead times of 4-7 days, much shorter than the previous week's 6-12 days.


Rotterdam’s B24-VLSFO HBE bunker price has moved $8/mt lower in the past week.

Prices for palm oil mill effluent methyl ester (POMEME) have declined by $25/mt to $1,298/mt in the past week. This has partly contributed to the bio-bunker price declines in Rotterdam. POMEME-based biofuels can qualify for advanced biofuel rebates through the Dutch HBE system.

Singapore’s B24-VLSFO UCOME bunker price has declined by $11-12/mt in the past week, depending on whether the price is adjusted with estimated EUA costs.

The prices have come down amid a $30/mt drop in UCOME FOB China prices, which is down because of weak demand from the EU.


Rotterdam’s LNG bunker benchmark has seen a modest $6-7/mt gain in the past week, depending on whether estimated EU ETS costs are included in the cost of fuel. The gains have mirrored increases in the front-month NYMEX Dutch TTF Natural Gas benchmark.

Despite the EU's gas storage levels being full at 67%, which is higher than last year, the TTF benchmark has increased. Analysts predict that Europe will head into the next winter with full storage, potentially leading to lower prices, head of commodities strategy at ING Warren Patterson said.

Singapore’s LNG bunker price has surged by $29-30/mt in the past week. This steeper increase is partly linked to the underlying NYMEX Japan/Korea Marker contract (JKM), which has rolled from the June to the higher-priced July contract, elevating the JKM benchmark and bunker prices.

By Konica Bhatt


Photo credit and source: ENGINE
Published: 21 May 2024

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