Biofuel Bunker Snapshot: Dutch biofuel rebates for B30 surpass $100/mt

Singapore overtakes Rotterdam as biggest biofuel bunker hub

Bio-premiums narrow in Rotterdam

Singapore

Singapore’s B24-VLSFO UCOME price has increased sharply in the past week, supported by an $11/mt rise in the underlying ENGINE conventional VLSFO price, while the port’s B24-LSMGO UCOME price has edged up by a modest $3/mt.

The rising China UCOME price has exerted further upward pressure on both biofuel benchmarks. PRIMA Markets assessed the UCOME FOB China benchmark at $970/mt on Friday, up by $20/mt from the previous week.

The strengthening of domestic prices for waste-based oils, including UCO, has lent support to UCOME price, PRIMA said. “Various [market] sources in the domestic sector have been seeing rising waste oil prices locally, with the rally in vegetable oils such as CPO providing positive support for the feedstock,” it added.

Biofuel price premiums over pure conventional fuels in Singapore are $116/mt for B24-VLSFO UCOME blends and $103/mt for B24-LSMGO UCOME blends. These bio premiums have widened by $2-5/mt on the week.

Rotterdam

Rotterdam’s B30-VLSFO HBE price has declined by $8/mt, while its B30-LSMGO HBE price has climbed in the past week. The $19/mt rise in the B30-LSMGO HBE price was driven by a notable $38/mt increase in the underlying ENGINE conventional LSMGO price.

Singapore overtook Rotterdam to become the biggest biofuel bunker hub. Rotterdam sold around 137,000 mt of bio-blended bunkers in Q3 2024, about 40% less than the 227,000 mt sold in Singapore during the same period. Rotterdam’s Q3 sales fell by 41% from the previous quarter, marking the lowest since Q4 2021.

Singapore's B24-VLSFO UCOME is priced around $22/mt higher than the rebated B24-VLSFO HBE price in Rotterdam, which includes POMEME-based biofuels. In contrast, Rotterdam's B24-VLSFO UCOME is about $55/mt more expensive than its Singapore equivalent, as UCOME blends do not qualify for Dutch advanced biofuel rebates.

The Dutch HBE A ticket price has risen sharply in the past week, making B30-VLSFO HBE blends even more appealing for bunkering in Dutch ports. PRIMA assessed the HBE A ticket price at €10.70/GJ ($11.55/GJ) on Friday, up from €9.85/GJ ($10.64/GJ) the week before. This rise results in a theoretical rebate of $103/mt for B30-VLSFO HBE blends, increasing by $8/mt from the previous week’s $95/mt rebate.

Rotterdam’s B30-VLSFO HBE premium over pure VLSFO has narrowed by $8/mt to $186/mt, while its B30-LSMGO HBE premium over pure LSMGO has narrowed by a sharp $19/mt to $144/mt.

By Nithin Chandran

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