B100 seen attractive shipping fuel option after MEPC 83

: Oil products
25/04/25

More buyers in the shipping sector will consider biofuel blends of up to B100 now a greenhouse gas (GHG) pricing mechanism has laid out by the International Maritime Organization (IMO), according to panellists at the Argus Biofuels & Feedstocks Asia Conference.

Global biodiesel demand is likely to strengthen in the near-term following the emergence of clearer international pricing standards for GHG emissions, they said.

"B100 seems to have great momentum based on the [83rd Marine Environment Protection Committee] MEPC meeting," said French certification society Bureau Veritas' VeriFuel global business development director Bill Stamatopoulos. MEPC 83 is "a clear indication that we have to work together and work fast" because there is a cost penalty for not switching away from conventional marine fuels, said Danish tanker owner Hafnia's general manager of project and fleet sustainability, Pankaj Porwal.

Most maritime participants welcomed the two-tier GHG pricing framework approved by the IMO at MEPC 83 from 7-11 April, which is a key milestone as the maritime sector pushes for decarbonisation.

Biofuels like B24, B30, and B100 will gain more interest because of cost-savings for buyers when switching to cleaner fuels, said Singapore bunker supplier Equatorial Marine Fuel's (EMF) chief operating officer Choong Sheen Mao. B24 is 24pc of used cooking oil methyl ester (Ucome) blended with 76pc of conventional fuel, such as very-low sulphur fuel oil (VLSFO), while B100 is pure biodiesel not blended with fossil fuels.

Panellists said bunkering B100 would provide significant advantages for ships with voyages in EU waters, where firms can "pool" multiple vessels within the EU Emissions Trading System (ETS) and FuelEU Maritime Regulation to balance compliance surpluses and deficits. But vessel shipowners would need to be "absolutely sure" of the amount of fuel required for the voyage, to avoid any unknown consequences if excess biofuels were mixed with other fuel types, said Hafnia's Porwal.

The GHG pricing mechanism gives bunker buyers a "strong indication" of the cost of not switching to alternative marine fuels and this will drive biodiesel demand as buyers realise "they need to get involved in some way", said EMF's Choong, adding that suppliers can consider selling biodiesel if it is "commercially viable".

There will be a minimum cost of compliance in adhering with IMO decarbonisation targets, but smaller shipowners should start running trials and "building quality control systems for your marine fuels so you're prepared to take on greener fuels", said International Bunker Industry Association (IBIA) Asia chair Rahul Choudhuri.

"At the moment hedging is very much focused on VLSFO and gasoil… but as exposures change and regulations change, we'll see more instruments being used to counter [trading risks]," said shipbroker Braemar oil derivatives broker Rebecca Reed-Sperrin. As the decarbonisation mandates grow, "hopefully liquidity increases tremendously" for marine biofuels, she said.

Challenges

Panellists cited several barriers in the widespread uptake of biofuels in the shipping sector, such as availability of Ucome feedstock, controversies regarding feedstock origin, and limited biodiesel shelf life compared to conventional marine fuels.

Fuel pricing and costs associated with bunkering biofuels surfaced as key concerns. International regulations are complex and buyers have to assess "what is [the] real price" taking into account IMO regulations, said Bureau Veritas' Stamatopoulos.

Charterers and tanker operators face difficulties in securing a price without hidden costs involved, Italian ship owner Fratelli Cosulich biofuel trading advisor Sebastiaan Bruins. B100 is available but suppliers are not actively selling it as buying interest has been limited, Bruins said.

China will be a "dominant force" for B100 supplies because of a larger Ucome volume, and market developments would depend on how China portions domestic and export volumes of Uco, said Choong.

Long-term uptake agreements for biofuel with major shipowners would be important in scaling up biofuel bunker supplies, said Indonesian state-owned refiner PT Pertamina's marine fuels trading manager Justin Tan. Bunker buyers need to signal their interest regarding biofuels "so we know where to start too", he said.

The maritime sector is still looking at a multifuel future since the supply of "Ucome alone cannot meet shipping's needs", said Danish tanker owner Maersk senior green fuel originator Felicia Ng.

By Cassia Teo

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25/05/20

Brazil to walk tightrope in Cop 30 fossil fuel talks

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Zuglogistik vor Herausforderungen

25/05/20

Zuglogistik vor Herausforderungen

Hamburg, 20 May (Argus) — Die Versorgung der Tanklager per Kesselwagen gestaltet sich deutschlandweit immer schwieriger. Zunehmende Probleme durch Ausfälle treffen auf einen erhöhten Bedarf an Kesselwagen aufgrund des andauernden Rheinniedrigwassers. Das Logistiksystem der Bahn scheint an der Auslastungsgrenze zu sein. Vor allem Personalausfälle bei den Zugführern aufgrund von Krankheit und einer hohen Fluktuation belasten das System, so Marktteilnehmer. Die siebenwöchige Totalsperrung der Strecke 6081 zwischen Berlin und Eberswalde erhöht den Personalbedarf und verlängert die Transportwege seit dem 11. April. Kesselwagen, die Ware aus der PCK Raffinerie (226.000 bl/Tag) in Schwedt in Richtung Berlin und Südost transportieren, müssen derzeit einen Umweg von knapp 400 km in Kauf nehmen. Die Sperrung soll bis voraussichtlich Ende Mai anhalten. Darüber hinaus sinken seit Mitte Februar die Rheinpegel , wodurch sich das Ladevolumen der Binnenschiffe sukzessive verringert. Anbieter weichen daher für die Versorgung der Tanklager verstärkt auf Kesselwagen aus. Im April stieg zudem die Nachfrage vor allem nach Heizöl und Diesel, was die Situation zusätzlich verschärfte. Züge verzögerten sich daher erheblich oder fallen zum Teil ganz aus. Dies wirkt sich teilweise auch auf Transporte in die Schweiz aus, berichten Händler. Der Engpass in der Logistik führt dazu, dass Händler einzelne Tanklager bereits seit mehreren Wochen nicht anfahren können, um Ware zu verladen. Eine Entspannung der Situation ist nicht abzusehen. Nach einer kurzen Erholung sind die Pegel am Oberrhein wieder gefallen. Eine volle Auslastung der Ladekapazität wird auch im Mai voraussichtlich nicht möglich sein, laut der wahrscheinlichkeitsbasierten 14-Tage-Vorhersage der Bundesanstalt für Gewässerkunde. Und eine weitere Sperrung steht bevor: Die Deutsche Bahn plant eine Generalsanierung der Strecke zwischen Hamburg und Berlin. Diese wird ab August 2025 für neun Monate voll gesperrt sein. Von Gabriele Zindel Senden Sie Kommentare und fordern Sie weitere Informationen an feedback@argusmedia.com Copyright © 2025. Argus Media group . Alle Rechte vorbehalten.

US budget bill not enough of permitting fix: CEO

25/05/19

US budget bill not enough of permitting fix: CEO

Washington, 19 May (Argus) — Republican efforts to unilaterally overhaul federal pipeline permitting through a filibuster-proof budget bill will not provide the certainty needed to make major investments in new energy infrastructure, an industry executive said today. Republicans in the US House of Representatives will vote as early as this week on a bill that would offer fast-tracked approval of new pipelines and immunity from some lawsuits, in exchange for a fee of up to $10mn. But that bill, along with attempts by the White House to expedite project approvals by executive order, fall short of what industry officials would like to see on permitting, US midstream operator Howard Energy Partners chief executive Mike Howard said. "Permit reform through an executive order or a reconciliation bill, that doesn't give me the confidence to go spend billions of dollars on new infrastructure," Howard said at a conference held by the news publisher RealClear. "You have to have an act of Congress that both sides of the aisle agree to and make real laws." Energy industry officials have good reason to be skeptical that permitting provisions in the budget bill will remain intact over the years it can take to plan, permit and build large-scale energy infrastructure. Wind and solar developers, oil companies and others making investments based on the clean energy tax credits that Democrats passed through the Inflation Reduction Act now face a risk those credits will be gutted by the Republican budget bill . A bipartisan permitting deal would probably be far harder to negotiate if Republicans succeed in using the pending budget bill to dismantle the clean energy spending in the Inflation Reduction Act, given that any agreement would need to fast-track pipelines in exchange for faster approval of electric transmission lines needed for renewables. Pipeline officials say they are continuing to push for permitting legislation, along with other fixes to expedite projects. "We spend more money on our permitting process than we spend on the steel in modern pipeline projects today, so we are a lot more focused now on the regulatory process and really getting streamlined because we think there's a tremendous amount of value in getting that resolved," US gas infrastructure company Williams chief executive Alan Armstrong said today in an interview on CNBC. Last week, US gas producer EQT's chief executive Toby Rice said there needs to be "significant reform" on permitting to offer the industry the confidence needed to start investing again in new pipelines, after a series of major projects were blocked over the last five years. "We're going to have to have more conversations with the pipeline guys," Rice said at an event held by the US Energy Association. "We've had executives that have lost billions of dollars proposing pipelines and having them blocked, canceled or opposed." By Chris Knight Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

Phillips 66 vote could change company's course

25/05/19

Phillips 66 vote could change company's course

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German gasoil demand down on rising prices

25/05/19

German gasoil demand down on rising prices

Hamburg, 19 May (Argus) — Traders in Germany bought significantly less heating oil in the week to May 18, after many stocked up when prices fell in the previous week. Rising prices have dampened demand, and heating oil inventories are at their highest May level in four years. Traded spot volumes for heating oil reported to Argus fell by almost 45pc on the week as inland prices for heating oil and diesel rose notably in the week for the first time since the end of March. Spot sales in the week ending May 11 has resulted in national average heating oil inventories above 50pc, according to Argus MDX data. The last time German inventories were more than half full at this time of year was in May 2021. Given the unusually high inventories and rising prices, many heating oil buyers are waiting before becoming active again. Diesel demand also fell, with traded spot volumes reported to Argus down by 23pc in the week ending May 18. But industrial end-users' inventories are at their lowest May level in five years, according to Argus MDX data. By Johannes Guhlke Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

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