Biofuel Bunker Snapshot: Rotterdam's B30-VLSFO at steep discount to Antwerp's blend

ZRE A ticket prices drop

Antwerp's B30-VLSFO at large premium over VLSFO

Higher feedstock costs support Singapore’s bio-bunker prices

Europe

Rotterdam's B30-VLSFO (POMEME) price has dropped $32/mt in the past week, even as the Dutch port's conventional VLSFO price has gained $10/mt over the same period.

This has narrowed Rotterdam's B30-VLSFO price premium over conventional VLSFO by $42/mt to $170/mt.

Dutch suppliers can generate ZRE A tickets for selling low-carbon fuels, which can be traded with other suppliers. The price of these tickets has dropped from €190/mtCO2e ($216/mtCO2e) last Thursday to €175/mtCO2e ($199/mtCO2e) on Thursday this week.

These ZRE A tickets help lower Rotterdam's biofuel prices compared with other ports. Belgium has no such mechanism.

B30-VLSFO (UCOME) in the neighbouring Belgian port of Antwerp is priced at $1,125/mt, a $256/mt premium over Rotterdam's B30-VLSFO (POMEME).

This is despite indications of lower feedstock costs for Antwerp's blend.

Prima Markets' ARA UCOME and POMEME barge prices, both indicators of feedstock sourcing costs, have each gained $6/mt in the past week, to $1,995/mt and $2,065/mt respectively. That leaves UCOME at a $70/mt discount to POMEME.

UCO-based biofuels do not qualify for Dutch ZRE A tickets, which can be generated using only advanced feedstocks listed in RED III Annex IX Part A, such as palm oil mill effluent (POME).

Antwerp's B30-VLSFO is at a $457/mt premium over the port's conventional VLSFO price, compared with a $170/mt premium in Rotterdam.

Meanwhile, Rotterdam's B30-LSMGO (POMEME) price has gained $16/mt to $1,492/mt, outpacing a $4/mt rise in the port's conventional LSMGO price.

B100 has been priced at $1,362/mt in Rotterdam today, $56/mt lower than last week.

Gibraltar's B30-VLSFO (UCOME) price has gained $30/mt in the past week, while the port's conventional VLSFO price has remained largely unchanged. This has widened the port's B30-VLSFO premium over conventional VLSFO by $29/mt to $279/mt.

Lisbon's B30-LSMGO price has jumped $140/mt to $1,740/mt. It is at a slim $6/mt premium over the port's conventional LSMGO price.

Asia

Singapore's B30-VLSFO (UCOME) price has surged $55/mt in the past week to $1,105/mt, while the port's conventional VLSFO price has gained only $7/mt over the same period.

This has widened Singapore's B30-VLSFO price premium over conventional VLSFO by $48/mt to $224/mt.

Prima Markets' price assessment for China UCOME cargo, which is a key feedstock for Singapore's B30-VLSFO blend, has gained $35/mt to $1,230/mt. This could have supported the biofuel blend's price.

By Nachiket Tekawade

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