Alternative marine fuels
Overview
The marine fuel sector is decarbonising. International Maritime Organization (IMO) requirements and EU legislation is driving this change alongside consumer demand for low carbon solutions.
These drivers have prompted shipowners to invest in alternative marine fuels including; marine biodiesel, bio-methanol, grey methanol, LNG, ammonia and hydrogen.
Argus provides pricing, insights, and intelligence for the fast-growing alternative marine fuels market with independent news, analysis, and market commentary on emerging changes and trends so you can stay ahead.
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Rotterdam biomarine sales fall in 1Q
Rotterdam biomarine sales fall in 1Q
London, 16 April (Argus) — Marine biodiesel blend sales fell by 35pc in the first quarter compared with the fourth quarter of last year, but were roughly steady compared with the first quarter of 2025. Participants pointed to lacklustre demand in January and February, with an uptick in March as the US-Iran war led to Dutch B100 flipping to a discount against MGO . But these discounts failed to support significant demand growth , as volatility weighed on marine fuel trading activity and buyers hesitant to make significant changes to their procurement strategy based on an acute price spread. Rotterdam's loss has been Singapore's gain. Data from the Port of Singapore showed roughly a 13pc growth in marine biodiesel blend sales on the quarter to the first quarter of 2026. This demand is attributed to FuelEU Maritime requirements, which came into effect in 2025 and require ships coming in, out of, and operating within EU waters to reduce emissions. Shipowners bunkering marine biodiesel in Singapore for EU-bound voyages can use it for FuelEU Maritime compliance. And compliance generated from bunkering marine biodiesel in Singapore can then be used to achieve compliance on vessels operating European routes, via the pooling mechanism, in which obligated companies can combine their compliance balance with other vessels. Bio-LNG sales firmed by 28pc on the quarter in the first quarter of 2026, generating over-compliance which has sold at a significant premium to cost . This may have also weighed on marine biodiesel blend sales, as bio-LNG volumes bunkered would have generated FuelEU compliance surpluses that can then be sold on to vessels that do not have LNG-capable engines. This would then potentially dampen FuelEU-driven demand from those vessels for marine biodiesel blends, and many shipowners did opt to buy surpluses to meet FuelEU requirements. But this dynamic may soon change because of the US-Iran war, where the FuelEU used cooking oil methyl ester (Ucome)–MGO abatement ex-emissions trading system (ETS) price was negative on 7 April. It has since returned to positive levels, marked at €61.45/tCO2e on 15 April. But this remains significantly below FuelEU compliance surplus levels, with offers seen at €175-210/tCO2e, meaning it is currently cheaper to generate compliance using marine biodiesel blends than to buy surpluses to meet the FuelEU requirements. By Hussein Al-Khalisy Rotterdam bunker sales t Fuel 1Q 2026 4Q 2025 Q1 2025 q-o-q % y-o-y % ULSFO 162,142 219,039 187,031 -26 -13 VLSFO 439,804 745,786 789,218 -41 -44 HSFO 619,010 804,962 829,197 -23 -25 MGO/MDO 360,517 402,781 393,071 -10 -8 Conventional total 1,581,473 2,172,568 2,198,517 -27 -28 Biofuel blends 104,630 161,934 104,037 -35 1 LNG (m3) 267,454 192,433 261,200 39 2 Bio-LNG (m3) 15,260 11,932 na 28 na Biomethanol 996 na 5,490 na -82 Port of Rotterdam Send comments and request more information at feedback@argusmedia.com Copyright © 2026. Argus Media group . All rights reserved.
Multi-fuel most sustainable future for bunkers: Panel
Multi-fuel most sustainable future for bunkers: Panel
Singapore, 16 April (Argus) — Ensuring availability of bunkering options for multiple fuels at key ports is the most viable approach to supporting an energy transition in the shipping industry and the establishment of green shipping corridors between key ports, said participants at the Argus Green Marine Fuels conference in Singapore. The US/Israel-Iran war and the subsequent disruptions to conventional bunker fuel supplies from the Middle East has shown that availability of a wider range of fuels will make shipowners less likely to be caught out by supply disruptions, especially for fossil fuels. The port of Rotterdam is preparing for a multi-fuel future like Singapore, said the port's program manager for sustainable transport Naomi van den Berg. "We see it has having a large part to play in moving towards a sustainable fuels future," she said. But infrastructure at ports must be available to support distribution of alternative fuels such as LNG, methanol and ammonia. Ports in Hong Kong are looking to mainland China for support in supplying alternative fuels, said Amy Chan, deputy secretary for transport and logistics for the Hong Kong Special Administrative Region government. Hong Kong is set to announce a partner for its own shipping green corridor later this year, Chan said. LNG remains by far the fuel of choice, based on order books for vessels . But most shipowners are still opting for dual use or considering triple-use engines to ensure they have the flexibility to refuel at ports that offer the best value fuel. The choice of LNG also means shipowners have the option to switch to bio-LNG. Availability of fuels and pricing remain key concerns, particularly in a challenging market, said Rohit Radhakrishnan, chair of the marine fuels committee in the Singapore Shipping Association. Investment in infrastructure is key to ensuring progress and while there are some existing facilities to support the transition to a multi-fuel future, there are still not sufficient infrastructure to fulfill the shipping industry's needs, said conference participants. By Siew Hua Seah Send comments and request more information at feedback@argusmedia.com Copyright © 2026. Argus Media group . All rights reserved.
US-Iran war sends FuelEU abatement price negative
US-Iran war sends FuelEU abatement price negative
London, 8 April (Argus) — The FuelEU used cooking oil methyl ester (Ucome)–marine gasoil (MGO) abatement ex-emissions trading system (ETS) price was negative on 7 April, underscoring how the US-Iran war has distorted marine fuel economics by driving fossil fuel prices sharply higher. The abatement price — which reflects the cost of meeting FuelEU requirements by using biodiesel instead of conventional MGO — fell below zero on 2 April for the first time since the assessment began at the start of 2025. It has remained negative since then, standing at -€23.46/t CO2 equivalent (CO2e) on 7 April. It follows a sharp rally in oil markets triggered by the conflict. The front-month Ice gasoil futures contract reached an all-time high of $1,569.75/t on 2 April, lifting MGO values and narrowing the cost gap between fossil fuels and biofuels. As a result, the typical "green premium" associated with biodiesel use was eroded. FuelEU Maritime regulations, which entered into force in 2025, require vessels operating in EU waters to cut greenhouse gas intensity by 2pc. The negative abatement price indicates that, at current values, using Ucome-based marine fuel is cheaper than using MGO on a compliance-adjusted basis. The shift follows an earlier distortion seen during the conflict, when B100 advanced fatty acid methyl ester (Fame) delivered into the Netherlands moved to a discount to MGO delivered into the Amsterdam-Rotterdam-Antwerp (ARA) hub once ETS costs were included. In parallel, traded FuelEU compliance surpluses for 2026 were reported at around €185/tCO2e on 8 April. This means it is currently cheaper to generate compliance using marine biodiesel blends than to buy surpluses to meet the FuelEU requirements. This is in stark contrast to last year, when shipowners largely opted to purchase overcompliance instead of using biodiesel — mainly due to cheaper compliance generated via manure-based bio-LNG . Despite these shifts, physical demand for marine biodiesel has yet to rise meaningfully. Market participants have reported limited increases in buying, but overall demand remains subdued even where biodiesel blends now offer a lower compliance-adjusted cost. This may be because of ongoing price volatility and uncertainty about the direction of the US-Iran war, which is keeping many shipowners focused on securing fossil fuel supplies for their vessels for the coming weeks. Another reason could be a lack of availability of marine biodiesel blends at smaller ports, and concerns from shipowners about engine compatibility for pure biodiesel. Demand for FuelEU compliance surpluses for 2026 has also softened, with plenty of offers but no bids. By Hussein Al-Khalisy Send comments and request more information at feedback@argusmedia.com Copyright © 2026. Argus Media group . All rights reserved.
Biomarine discounts fails to spur demand gains on war
Biomarine discounts fails to spur demand gains on war
London, 12 March (Argus) — Marine biodiesel discounts to fossil bunker fuels have yet to support demand growth as market volatility as a result of the Iran-US war is weighing on marine fuel trading activity. B100 advanced fatty acid methyl ester (Fame) dob Netherlands flipped to a discount to marine gasoil (MGO) dob ARA when accounting for EU emissions trading system (ETS) costs on 2 March, the first trading session after the start of the US-Iran war . The marine biodiesel product has since sustained this discount, reaching $83.66/t on 11 March. And B100 was also marked at an outright price discount to MGO dob ARA on 9 March, not accounting for ETS costs. Market participants told Argus that the new dynamic will have to be sustained for a while longer for significant demand shifts to materialise — with shipowners and buyers hesitant to make significant changes to their procurement strategy based on an acute price spread. Shipowners are also staying out of the spot market for non-urgent volumes because of bunker fuel price volatility, and many are concerned about pre-agreed contract volumes for near-term voyages. Some told Argus that their focus is on ensuring that those volumes are met as suppliers could call in a force majeure if product shortages emerge from a prolonged war in the Mideast Gulf. Others added there were concerns about engine compatibility as well as the lower energy content of B100 product versus conventional fuels. Other marine biodiesel blends have also flipped to ETS-inclusive discounts to conventional counterparts in recent sessions. B24 dob Algeciras-Gibraltar achieved an $11.92/t discount to very-low sulphur fuel oil (VLSFO) prices in the west Mediterranean hub on 9 March, once ETS costs were accounted for. And B30 Advanced Fame and MGO dob Netherlands was also at a discount to MGO dob ARA on 4 and 9 March, inclusive of ETS costs. Beyond consideration of ETS-inclusive price spreads, FuelEU Maritime requirements, which set a 2pc greenhouse gas (GHG) reduction for vessels operating in EU waters this year. FuelEU used cooking oil methyl ester (Ucome)-MGO abatement ex-ETS prices averaged €85.78/tCO2e between 2-11 March. This compares with FuelEU compliance surplus values seen at €170-185/tCO2e for 2026 compliance and €185-200/tCO2e for 2025 compliance during the same period. This means that it is currently cheaper for shipowners to generate FuelEU compliance using marine biodiesel blends instead of MGO volumes, than it is to buy FuelEU compliance surplus. By Hussein Al-Khalisy Send comments and request more information at feedback@argusmedia.com Copyright © 2026. Argus Media group . All rights reserved.
Market outlook: What's next for agricultural biofuels feedstocks?
Market outlook: What's next for agricultural biofuels feedstocks?
Webinar: Biofuels Waste-Based Feedstocks Market Overview and Outlook
Webinar: Biofuels Waste-Based Feedstocks Market Overview and Outlook
Webinar: SAF Horizons - Global Market Dynamics, Policy Shifts, and Forecasts
Webinar: SAF Horizons - Global Market Dynamics, Policy Shifts, and Forecasts
Webinars
Biofuels Waste-Based Feedstocks Market Overview and Outlook
As of mid-2025, the waste-based feedstocks market for biofuels in Europe and Asia is experiencing a mix of stability and pressure, shaped by regional dynamics, policy shifts, and changes in global trade flows.
On demand Webinar - 25/06/12SAF Horizons - Global Market Dynamics, Policy Shifts, and Forecasts
We will hear from our freight experts as SAF policy and demand create global trading opportunities in this market.
On demand Webinar - 25/05/21Zooming into the US feedstock market and futures contracts
North America market updates, including recent regulatory changes like 45Z that are driving these markets
On demand Webinar - 25/05/06A webinar series exploring the shifting dynamics in the oil market
Explore how tariffs could influence global oil demand and reshape production dynamics.
Related documents
Alternative marine fuels key prices
Argus Marine Fuels features a comprehensive range of alternative marine fuels prices (in $/t VLSFO, $/t HSFO, and $/t MGO equivalents and $/mn Btu).
Latest events
Argus Biofuels Europe Conference & Exhibition
Argus Biofuels Europe Conference & Exhibition
Argus Biofuels & Feedstocks Asia Conference
Argus Biofuels & Feedstocks Asia Conference
Argus Green Marine Fuels Asia Conference
Argus Green Marine Fuels Asia Conference
Global alternative fuels vessel databases
Argus Marine Fuels includes access to proprietary data in three downloadable databases, providing essential insights into the changing marine fuels market:
Spot deals and firm quotes
This list of spot deals gives buyers and sellers understanding where they stand price-wise compared with their competitors. Argus’ daily deals/quotes detail the port, type of fuel, size of the deal, price, delivery method and delivery dates. It does not include counterparties’ names.
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Alternative fuels vessels and supplier list
Argus lists vessels that are burning alternative marine fuels, including methanol, biofuels, ammonia, hydrogen, LNG, LPG, as well as those running on batteries. The database is updated every month.
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Scrubbers
The database is updated every month. It contains over 4,300 records and counting.
View sample data