Demand for marine biofuels in Singapore, the world’s largest bunkering hub, will nearly double from 2023 levels to nearly 1 million tonnes by 2025 as shippers seek to cut emissions, Reuters reports A Total Energy executive said there is a possibility that
To reduce carbon emissions, a growing number of shipping companies are conducting refueling trials using marine biofuels as an alternative to traditional fuel oil.
Louise Tricoire, vice president of Total Energy Marine Fuels, told Reuters: “Looking ahead to 2025, Singapore’s biofuel (bunker) demand could potentially surge to 1 million (metric) tonnes per year. It’s possible we’re getting closer.”
Sales of bio-blend marine fuel in Singapore more than tripled last year to more than 500,000 tonnes, according to data from the Port Authority of Singapore. Total sales in 2023 exceeded initial expectations as regulations on carbon intensity index (CII) boosted growth, Tricoire said. CII measures how efficiently a ship transports goods and passengers in grams of carbon dioxide emitted per cargo capacity and nautical mile.
Industry sources say fuel oil prices for B24 biomarine fuel blends remain at least $200 more than 0.5% low-sulfur fuel oil, a price differential that still prevents mass adoption.
TotalEnergies Marine Fuels will be one of Singapore’s major marine biofuel suppliers in 2023, but declined to comment on specific quantities. The company’s biofuel products are second generation products and are ISCC certified. Global demand for low-carbon marine fuels is expected to increase from this year, as the European Union’s emissions trading scheme kicks into gear in the shipping industry. This means ships have to pay for the emissions they produce, so burning lower carbon marine fuels can help reduce costs. Testing by the Global Center for Ocean Decarbonization found that using biofuel blends can reduce net carbon emissions by nearly 20% compared to using conventional fuel oil.