Biofuel Bunker Snapshot: Costly feedstock supports Rotterdam bio-bunker prices

POMEME feedstock prices increase

Gibraltar’s B30-VLSFO price premium narrows

Singapore’s B30-VLSFO premium sharply up in August

ARA

Rotterdam’s B30-VLSFO (POMEME) price has increased $27/mt over the past week, despite a $21/mt decrease in the Dutch port’s conventional VLSFO price.

Prima Markets has assessed ARA POMEME and UCOME barge prices increasing $55/mt over the last week to $1,880/mt and $1,810/mt, respectively. This may have helped counter the downward pressure from the conventional VLSFO price.

The port’s pure B100 bunker price has made a $63/mt increase over the week.

Meanwhile, Rotterdam’s B30-LSMGO blend has dropped $11/mt in the past week, despite a $39/mt increase in the port's LSMGO price.

Low-carbon advanced biofuel bunker sales, like POMEME-blends, can generate ZRE A tickets that hold value. This helps lower the price of biofuel bunkering in the Netherlands considerably.

The price of these tickets has been assessed at €135-149/mt ($157-173/mt) this week.

Mediterranean

Gibraltar’s B30-VLSFO price has slumped by $118/mt, far exceeding a modest $16/mt fall in the port’s conventional VLSFO price. This has narrowed Gibraltar’s B30-VLSFO premium over VLSFO by $102/mt in a single week.

In Portugal’s Aveiro, B100 has been priced at $1,780/mt this week, and B30-LSMGO at $1,451/mt.

Singapore

Singapore’s B30-VLSFO (UCOME) price has dropped $24/mt in the past week.

The port’s conventional VLSFO price has fallen by a steeper $51/mt.

Singapore’s B30-VLSFO price has increased by $30/mt over the past month, while its conventional VLSFO price has increased by $10/mt.

Consequently, Singapore’s B30-VLSFO premium over VLSFO has increased by $65/mt to $231/mt.

The Prima Markets-assessed China UCOME cargo price, which is known to influence bunkering prices in Singapore, has edged $5/mt higher to $1,190/mt in the last week.

In other biofuel bunker news, the Union of Greek Shipowners (UGS) said it wants emission targets determined by what the bunker market can actually supply, ahead of IMO talks on 1 September.

Australia has laid out a plan to grow demand and supply for low- and zero-emission bunker fuels and expand bunker infrastructure, as it looks to align its shipping sector with the IMO's 2050 net-zero ambition.

By Nachiket Tekawade

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