Biofuel Bunker Snapshot: Rotterdam’s B30-VLSFO premium over VLSFO narrows

ARA feedstock costs rise

Antwerp B100 at $723/mt premium over Rotterdam’s B100

Singapore’s B30-VLSFO premium over VLSFO widens sharply

Europe

Rotterdam’s B30-VLSFO (POMEME) price has gained $36/mt in the past week, while the Dutch port’s conventional VLSFO price has jumped $54/mt over the same period.

This has narrowed Rotterdam’s B30-VLSFO price premium over conventional VLSFO by $17/mt, to $174/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 held at €240/mtCO2e ($269/mtCO2e) on Thursday this week, unchanged from last Thursday.

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

Prima Markets’ ARA UCOME and POMEME barge prices, both indicators of feedstock sourcing costs, have each gained $45/mt in the past week, to $1,755/mt and $1,825/mt respectively. That leaves UCOME at a $70/mt discount to POMEME.

Higher feedstock costs could have supported Rotterdam’s B30-VLSFO price.

Meanwhile, Rotterdam’s B30-LSMGO (POMEME) price has gained $13/mt to $1,430/mt, slightly outpacing a $12/mt rise in the port’s conventional LSMGO price.

This has widened Rotterdam’s B30-LSMGO premium over conventional LSMGO by $2/mt, to $23/mt.

B100 has been priced at $1,261/mt in Rotterdam today, $76/mt higher than last week.

In the neighbouring Belgian port of Antwerp, B100 has been priced at $1,984/mt today, up $52/mt on the week and $723/mt more than in Rotterdam.

B30-LSMGO is priced at $1,570/mt in Portugal’s Aveiro, a $64/mt price premium over the port’s conventional LSMGO price. B-100 is priced at $1,712/mt in Aveiro.

Asia

Singapore’s B30-VLSFO (UCOME) price has surged $56/mt in the past week to $1,150/mt, while the port’s conventional VLSFO price has gained only $12/mt over the same period.

This has widened Singapore’s B30-VLSFO price premium over conventional VLSFO by $45/mt, to $241/mt.

Prima Markets’ price assessment for China UCOME cargo, which is a key feedstock for Singapore’s B30-VLSFO blend, has edged up $5/mt to $1,220/mt.

In other biofuel news, logistics firm DSV will use CMA CGM’s biofuel bunkering service to claim around 12,000 mtCO2e of well-to-wake emissions reductions for its ocean freight operations.

By Nachiket Tekawade

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