TFG Marine supplies first carbon offset bio-blend bunker fuel to Western Bulk

TFG Marine has supplied its first carbon offset bio-blend bunker fuel to global dry bulk shipping company Western Bulk Chartering, as it aims to offer its customers various carbon reduction initiatives targeting emissions mitigation objectives, the company said.

"TFG Marine now regularly delivers biofuels to customers in the ARA region and is supporting customers such as Western Bulk to minimize and offset the carbon emissions generated from their shipping voyages through Trafigura's portfolio of carbon reduction projects that are verified by leading registries," Kenneth Dam, TFG Marine's global head of bunkering, said in a statement on Feb. 7.

"We assist customers with the measurement and reporting of the emissions associated with each voyage and offer a range of carbon reduction initiatives to help them achieve their emissions reduction goals," Dam added.

By blending biofuel into traditional VLSFO, 750 mt of bio-blend or B30 grade marine fuel was supplied to the Beks Ceyda bulk carrier, reducing greenhouse gas emissions by about 25% when compared with traditional VLSFO alone, according to the company, which is the global marine fuel supply and procurement joint venture between Trafigura and shipping firms Frontline and Golden Ocean.

Bio-blend fuels accounted for over 300,000 mt at the port of Rotterdam in 2021, the authority reported. This is the combination of fossil bunkers and bio-components, although the exact ratio was not given.

This comes after TFG Marine partnered with the d'Amico Group and other industry stakeholders on a joint industry project launched in June 2021 to test B30 derived from renewable feedstock to power a d'Amico Group LR1 product tanker. The aim of the project was to study findings in terms of the decline of CO2 emissions, reduced carbon intensity, and stable nitrogen oxide emissions.

The results of the trials showed that the B30 biofuel blend is a viable solution to comply with EU fuel regulations being introduced from Jan. 1, 2025 on the use of renewable and low-carbon fuels in maritime transport, TFG Marine said separately on Feb. 1.

The trials also showed that depending on the scale-up of feedstock production worldwide, adding the biofuel blend as a "drop in" to traditional maritime fuels is a viable measure to reduce emissions, TFG Marine said.

Carbon offsets

Carbon offsets are growing more expensive. EU Emissions Trading Scheme carbon prices have reached new all-time highs, surpassing Eur96/mtCO2e in early February, on the back of increasing demand from compliance entities amid ongoing investor interest in reforms to the carbon market and uncertainty over EU energy stocks.

S&P Global Platts Analytics expects daily EU carbon allowance prices to reach Eur100/mt in February, then to start easing with seasonal demand changes during spring. Platts Analytics does not expect policy intervention in either the EU ETS or UK ETS, as carbon prices remain below policy trigger thresholds.