Biofuel Bunker Snapshot: Bio premiums widen in Rotterdam

Prices gain sharply in Rotterdam

Dutch rebates fall below $140/mt

Singapore

Singapore’s B24-VLSFO UCOME price has dropped by a sharp $13/mt in the past week, closely tracking a $14/mt decline in the underlying ENGINE conventional VLSFO price. Meanwhile, the B24-LSMGO UCOME price has seen a smaller decrease of $6/mt.

PRIMA Markets assessed the UCOME FOB China benchmark at $1,010/mt on Friday, unchanged on the week. UCOME offers during the week ranged between $1,000/mt and $1,030/mt, PRIMA said.

The cancellation of China’s 13% tax rebate for used cooking oil (UCO) exports, effective 1 December, is anticipated to boost the domestic availability of UCO, making more of the feedstock available for sustainable aviation fuel production and bunkering.

The port’s B24-VLSFO UCOME premium over pure VLSFO has remained steady at $134/mt, while its B24-LSMGO UCOME premium over pure LSMGO has widened by $3/mt to $110/mt.

Rotterdam

Rotterdam’s B30-VLSFO HBE and B30-LSMGO HBE prices have risen by $34-35/mt in the past week. These gains have been supported by an increase in the price of palm oil mill effluent methyl ester (POMEME).

PRIMA assessed the POMEME price in the ARA at $1,463/mt on Friday, up by a massive $71/mt in the past week. POMEME is one of the most popular advanced biofuel feedstocks, and POMEME-based biofuels qualify for advanced biofuel rebates through the Dutch HBE system.

The Dutch HBE ticket price for 2024 has eased from €17.50/GJ ($18.38/GJ) a week ago to €14.15/GJ ($14.86/GJ) on Friday. This is also down from €23/GJ ($24.15/GJ) noted two weeks ago and now equates to a theoretical rebate of $132/mt for B30-VLSFO HBE blends sold in Dutch ports.

Biofuel price premiums over pure conventional fuels in Rotterdam are $186/mt for B30-VLSFO HBE blends and $137/mt for B30-LSMGO HBE blends. These premiums have widened by $58-59/mt on the week.

UCOME-blends have seen more modest gains, with both Rotterdam’s B30-VLSFO UCOME and B30-LSMGO UCOME prices rising by $4/mt. As a result, the premium for B30-VLSFO UCOME over the rebated B30-VLSFO HBE price has narrowed from $157/mt last week to $126/mt.

By Nithin Chandran

Please get in touch with comments or additional info to news@engine.online