Bio-LSMGO prices gain, most bio-VLSFOs steady

Bombshell ISCC proposal from the EU

Bio-bunker firsts in Portugal and Panama

Rotterdam

The price of B30-VLSFO HBE has been roughly steady compared to a week ago in Rotterdam, only gaining $2/mt. Support has come from a $16/mt rise in the POMEME CIF ARA barge price assessed by PRIMA Markets, as well as a $5/mt gain in ENGINE’s pure VLSFO price.

The HBE ticket market has been active in recent days and a $5/mt increase in the PRIMA’s assessed HBE rebate has countered almost all the POMEME and VLSFO support.

B30-VLSFO HBE is at a $236/mt premium over pure VLSFO in Rotterdam, similar to a week ago.

Rotterdam’s B30-VLSFO HBE benchmark is up by a greater $14/mt on the week on the back of a $20/mt increase in pure LSMGO.

ARA B30-VLSFO UCOME has moved up by $7/mt. PRIMA’s UCOME FOB ARA barge price has made the same $16/mt weekly gain as POMEME to support the B30 blend. There are no HBE rebates for UCOME in the Netherlands, or Belgium for that matter, and B30 prices are consequently not impacted by any changes in HBEs.

Singapore

Singapore’s B24-VLSFO UCOME price is almost unchanged, edging up by $1/mt on the week. PRIMA’s assessed cargo price for UCOME FOB China has not moved, while ENGINE’s pure VLSFO price is up by $5/mt in support of the B24 blend. Freight costs for a relevant UCOME cargo from China to Singapore has slipped $0.25/mt lower on the week, to $17.00/mt.

B24-VLSFO UCOME’s premium over VLSFO has come off by $4/mt to $178/mt.

All bunker vessels are now allowed to carry and deliver B30 biofuel blends in Singapore, following an announcement from the Maritime and Port Authority of Singapore (MPA) at the beginning of March. Since then, we have seen more B30-VLSFO being offered in Singapore, at levels varying from $35-55/mt above B24-VLSFO.

Other bio-bunker news

The European Commission is considering suspending recognition of ISCC-EU certification for waste-based biofuels for 2.5 years, sparking backlash from the International Sustainability & Carbon Certification (ISCC) system. The ISCC says the move is “ad hoc and immature” and warns it could disrupt the global waste-based biofuels market.

Meanwhile, FincoEnergies is shaking up the Dutch biofuel bunker market by introducing a Proof of Compliance (PoC) document, making it the first supplier to offer shipping companies an official ISCC-certified sustainability record with rebated biofuel stems.

Portuguese biofuel producer PRIO Energy has started supplying B100 (100% biofuel) in Portugal and expects biofuel bunker demand to pick up pace.

Monjasa has announced it delivered the first ISCC-certified biofuel bunker stem in Panama. Early last month it supplied 900 mt of B30-VLSFO to NYK Line’s Hestia Leader in Cristobal.

By Erik Hoffmann

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