Biofuel Bunker Snapshot: Bio-bunker prices gain with oil in major ports
Both HBE-rebated and UCOME bio-bunker prices move up
B100 considerably cheaper in Rotterdam than in Singapore
FincoEnergies launces FuelEU pool to sell biofuel overcompliance
Rotterdam
Rotterdam’s price for HBE-rebated B30-VLSFO has edged up by $3/mt in the past week. The price has risen on the back of a $14/mt gain in pure VLSFO, while headwinds have come from a $3/mt dip in POMEME CIF ARA barges and a $5/mt higher HBE rebate for B30 biofuel blends – both assessed by PRIMA Markets.
B30-VLSFO HBE is now $218/mt more expensive than pure VLSFO in Rotterdam, down from $229/mt last week. These prices are outright and do not take different energy contents and EU regulation costs into account.
The ARA’s B30-VLSFO UCOME price has moved up by a greater $8/mt on the week. Some downward pressure has come from similar $3/mt drop in UCOME FOB ARA barges (as for POMEME CIF ARA barges), assessed by PRIMA. As UCOME does not qualify for HBEs, the HBE ticket increase did not make a dent to this bunker price.
HBE-rebated B100 has been indicated between $1,140-1,160/mt in Rotterdam in the past week. This grade is with palm oil mill effluent (POME) as a feedstock. B100s based on other feedstocks like cashew nut shell liquid (CNSL) and fatty acid methyl ester (FAME) residue continue to be offered at $200-300/mt lower prices, but not everyone want them.
Singapore
B24-VLSFO UCOME has gained $3/mt on the week in Singapore, helped by an $8/mt increase for pure VLSFO. There has been some counterpressure from an $8/mt drop in PRIMA’s UCOME FOB China cargo price. China is a major UCOME source for Singapore, and the freight rate for a relevant cargo shipment to Singapore has come off by $1/mt to $15.25/mt.
B24-VLSFO UCOME now commands a $182/mt premium over conventional VLSFO in Singapore. That is $5/mt less than a week ago.
B100 UCOME has been indicated around $1,340/mt in Singapore this week, which is about $220/mt more expensive than POME-based, HBE-rebated B100 in Rotterdam.
Other bio-bunker news
Dutch biofuel bunker supplier FincoEnergies has launched a FuelEU Maritime pool that lets non-compliant ships buy surplus credits from biofuel-powered ships to become compliant with the regulation. The FuelEU came into effect from 1 January this year and requires ships sailing to EU ports to cut their greenhouse gas (GHG) intensity by 2% between 2025-2029.
Several other FuelEU pools have been set up by various players in recent months. LNG and liquefied biomethane (LBM) bunker supplier Gasum has a compliance pool, and so do non-supplier startups like BetterSea and Ahti.
B100 could potentially reap high returns under the IMO’s new Net-Zero Framework. Since B100’s GHG intensity (16.23 gCO2e/MJ in FuelEU Maritime) could be well below both of the IMO’s upcoming compliance targets, it could earn a potential surplus of around $860/mt in 2028, according to ENGINE calculations. While the value of this surplus is expected to decline as targets become more stringent, B100 is still estimated to earn around $520/mt in 2035 (with a GHG intensity at the FuelEU level).
By Erik Hoffmann
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