Global energy and commodity price reporting agency Argus today launched the world’s first independently assessed price for ship fuel that includes a biofuel component. The new B24 daily assessment reflects the market value of "bunkers” – as ship fuel is known – made up of 24% used cooking oil methyl ester (UCOME) and 76% very-low sulphur fuel oil (VLSFO), delivered-on-board in Singapore.
The shipping industry is under pressure to decarbonise. International Maritime Organisation regulations and changing consumer demand are driving the switch. Marine biodiesel such as B24 can be used with existing engine technologies, allowing it to deliver an immediate carbon reduction.
In Singapore, the world’s biggest bunkering hub, the B24 market is growing rapidly. Sales in 2022 were more than 140,000t, with trade accelerating over the last three months of the year.
The Argus B24 price assessment is underpinned by a transparent methodology based on market transactions, bids and offers. It can be used by companies in contracts, for mark-to-market valuations, to optimise production, and in market analysis.
Argus Media chairman and chief executive Adrian Binks said: “The maritime industry is embracing the need to evolve and reduce greenhouse gas emissions. Our new B24 assessments are the world’s first biofuel bunker prices and bring vital transparency to this new and emerging market, which will play an increasingly important role while the industry transitions to develop cost-effective zero carbon solutions.”