HBE biofuel prices gain in Rotterdam

Dutch biofuel rebates steady

Singapore

Singapore’s B24-VLSFO UCOME price has increased by $8/mt in the past week. The port’s B24-LSMGO UCOME price has shed $4/mt, mirroring a $4/mt drop in the underlying ENGINE LSMGO price. This has narrowed the B24-LSMGO premium over B24-VLSFO from $118/mt to $106/mt.

Singapore’s B24-VLSFO UCOME is priced about $130/mt higher than pure VLSFO, while B24-LSMGO UCOME carries a premium of around $117/mt over pure LSMGO. These premiums have remained steady in the past week.

The Maritime and Port Authority of Singapore (MPA) has introduced new concessions on port dues for ocean-going vessels using biofuels. Ships powered by B100 (100% biofuel) qualify for a full 100% concession. Those using blends between B50 and B99 are eligible for a 30% concession, while blends ranging from B24 to B49 can avail a 20% concession.

This new policy replaces the previous rule, which provided a single 30% concession for vessels using B20 or higher. It will be in effect from 1 January 2025 to 31 December 2027 and apply to ships calling at the port for stays of up to four days.

Rotterdam

Biofuel benchmarks in Rotterdam continue their upward trend. Both HBE biofuel benchmarks have risen over the past week, with B30-VLSFO and B30-LSMGO HBE prices increasing by $10-12/mt.

PRIMA assessed palm oil mill effluent methyl ester (POMEME) in the ARA at $1,418/mt on Friday, up by $24/mt on the week. This has put upward pressure on both HBE benchmarks. POMEME-based biofuels qualify for advanced biofuel rebates through the Dutch HBE system. As a result, Rotterdam’s B30-VLSFO HBE is priced about $106/mt lower than Rotterdam’s B30-VLSFO UCOME price, which does not qualify for Dutch rebates.

The 2025 ticket price for advanced HBE was accessed by PRIMA at €10.45/GJ ($10.89/GJ) on Friday, slightly down from €10.50/GJ ($10.94/GJ) a week ago. This translates to a theoretical rebate of $97/mt for B30-VLSFO sold in Dutch ports.

By Nithin Chandran

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