November 2022. As marine gasoil supply tightens and shipowners seek more sustainable options, marine biodiesel, a blend of Advanced Fame 0 and very low sulphur fuel oil (VLSFO), could provide a reasonably competitive, low sulphur and low carbon alternative. This white paper examines dynamics including demand and pricing for the fuel.
A suite of marine biodiesel indexes for northwest Europe compliant with the Renewable Energy Directive on a delivered on board basis for Amsterdam-Rotterdam-Antwerp. The price suite includes B10, B20, B30, B50 and B100 indexes that are published daily in Argus Biofuels and Argus Marine Fuels reports.
Marine fuel suppliers and shipowners often use very-low sulphur fuel oil (VLSFO) wholesale (barge and cargo) prices and crude (Brent and Dubai) prices to hedge their VLSFO for bunkering sales and purchases. The significance of VLSFO wholesale and crude as hedging tools fell this year. Argus’ outright VLSFO bunker assessments are informed by a robust number of daily deals and are the best tool to use in contact indexations.
April 2022. California starting next year will require commercial harbor craft vessels in the state to burn renewable diesel (R99) instead of ultra-low sulphur diesel (ULSD), increasing their marine fuel bills. The state’s environmental agency, California Air Resource Board (CARB), expects the switch to R99 to reduce nitrogen oxide (NOx) emissions by 30pc and particulate matter emissions by 10pc.
We discuss the current state of the European conventional bunker market and the latest developments in alternative marine fuels, touching on the European bunker markets’ recovery from Covid-19, pricing themes between the key European bunker ports, Argus’ new bunker indexes for the ARA and West Med hubs and more.