GLOBAL LOW-CARBON MARINE FUELS: Key market indicators Nov. 18-22

Prices

Platts, part of S&P Global Commodity Insights, assessed bunker fuels and low-carbon marine fuels as follows:

• LNG Bunker Singapore was assessed at $15.090/Gj Nov. 15, a premium of $1.534/Gj to 0.5%S fuel oil.

• LNG Bunker Rotterdam was assessed at $15.339/Gj Nov. 14, a premium of $2.827/Gj to 0.5%S fuel oil.

• Bio-LNG bunker in Rotterdam was assessed at $26.088/MMBtu Nov. 14, a premium of $9.905/MMBtu to fossil LNG.

• Bio-Bunkers B24 UCOME Singapore was assessed at $721.92/mt Nov. 14 and Bio-Bunkers UCOME Rotterdam at $792.75/mt.

• 20% sustainable Methanol Marine Fuel was assessed at $556/mt in Houston Nov. 14 and MMF delivered in Singapore at $523.80/mt.

Star Bulk banking on biofuel

Star Bulk -- one of the largest dry bulk shipping companies -- will start buying biofuels to power its fleet to comply with a new EU regulation from next year, its bunker director, Constantinos Capetanakis, told Commodity Insights in an interview.

Brussels is set to introduce FuelEU Maritime rules that mandate ship operators to cut the greenhouse gas emission intensity of fuels used by ships in EU-related trades by 2% from 2025, 6% from 2030, 14.5% from 2035, 31% from 2040, 62% from 2045 and 80% from 2050, against 2020 baselines.

With EU officials warning that shipping firms simply using conventional, oil-based fuels would not be able to comply, many analysts have predicted more biofuels will enter the bunker pool, as ships without propulsion systems for alternative fuels can use them on a drop-in basis.

"We will be using, going forward, some form of biofuels in order to achieve compliance," said Capetanakis. "We are making the calculations to see what the optimum choice of blend ratio is."

Hercules orders biofuel, methanol ships

Hercules Tanker Management, an affiliate of bunker supplier Peninsula, ordered up to 10 refueling ships capable of supplying methanol and 100% biofuels, the company said Nov. 12, as more shipping firms seek alternative fuels to cut GHG emissions.

The company booked six firm 7,700-dwt IMO II chemical tankers and four optional ones from the Jiangmen Hangtong shipyard in China, which will be delivered from 2026, according to a statement.

"We anticipate an evolving alternative fuels market, in which we will play a leading role with specialist supply assets," said John A. Bassadone, founder and CEO of both Hercules and Peninsula.

ZEMBA to issue tender requirements in January

The Zero Emission Maritime Buyers Alliance will issue its next "green" freight tender in January to transport containers on ships powered by synthetic fuels, the cargo owners' alliance said Nov. 13, eyeing a forecast increase in the low-carbon energy's supply despite project delays.

The tender, which is equivalent to 1.4 million twenty-foot equivalent units of containers shipped from Shanghai to Los Angeles, would reduce GHG emissions by 470,000 mt, according to ZEMBA.

The announcement came after ZEMBA and classification society Lloyd's Register said in a report in October that e-fuel availability is projected to reach 391,000 mt of heavy fuel oil equivalent by 2027 before growing further to 1.07 million mtHFOe by 2030.

ZEMBA is most likely to opt for eMethanol-powered ships in the next tender, given the expanding fleet of ships capable of running on methanol and rising eMethanol production, according to the report.