Off-spec bio-blends widen pricing spread

Market: Biofuels, Oil products
15/02/24

The range of prices for marine biodiesel blends in Europe has widened as cheaper product that does not meet the region's road diesel engine specifications — as defined by the European EN14214 standard — gains market share.

Indicated values and fixed deals in Rotterdam for delivered bunker fuel made of pure biodiesel (B100) from advanced feedstocks — defined by Annex IX Part A of the EU's recast Renewable Energy Directive — were broadly reported at $897-1,000/t between 26 January and 7 February. But some suppliers quoted prices as high as $300/t higher for B100 blends meeting the EN14214 standard.

Argus assessed the calculated B100 advanced Fame 0°C CFPP dob ARA range price at an average of $1,127.95/t over the same period, with the price standing at $1143.36/t on 13 February. The calculated dob ARA range price incorporates a deduction for HBE-Gs, which are used by companies that bring liquid or gaseous fossil fuels into general circulation and are obligated to pay excise duty or energy tax on fuels, but it is also based on assessments for EN14214 standard biodiesel.

Shipowners may be tempted to burn cheaper fuels, but doing so could prove to be risky. Original equipment manufacturers of ship engines such as MAN and Wartsilla currently licence their engines to utilise and combust fuels that are in line with current ISO specification list, ISO8217:2017.

According to MAN service letters, biodiesel properties should meet either EN14214 or ASTM D6751 standards in order to be used for their engines. This means that shipowners using fuels that do not meet these standards are at risk of potentially voiding their warranty or insurance cover in the case of any damage to engines caused by off-spec fuels.

However, some market participants said shipowners can obtain a green light from their insurance provider by providing a specification sheet ahead of bunkering.

ISO is currently developing a new specification standard, ISO 8217:2024, which many market participants expect to broaden the coverage of alternative marine fuels and potentially establish a standard that is more flexible and applicable to the maritime sector. MAN said if a biodiesel standard is established in a new ISO 8217 edition, it will recommend following this version.

By Hussein Al-Khalisy

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Republican floats repeal of 45Z clean fuel credit

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27/01/25

France imported record amount of US crude in November

Barcelona, 27 January (Argus) — French crude imports in November included a new high from the US. Customs data show imports at 4.3mn t (1.04mn b/d), up by 7pc on the year and down from 4.5mn t a month earlier. Deliveries of US crude were just over 1.25mn t, up from the previous record of slightly more than 1.2mn t in October and December 2023. The latter month had been the highest, but a downwards revision gave that spot to November 2024. US crude imports have been arriving on very large crude carriers (VLCC) at the Mediterranean port of Fos-Lavera. A VLCC of WTI grade crude unloaded there in October, in November and in January. Argus ' tracking shows US crude as the largest single source of imports at the port . Each delivery has been for Rhone Energies' 133,000 b/d Fos refinery. This has been operated since November by a consortium comprising trading firm Trafigura and US-based energy infrastructure company Entara. Kpler data show all three VLCCs were arranged by trading firm Vitol. The US is now by far the biggest supplier to France. It provided 10.2mn t of crude in the January-November period, up from 7.8mn t on the year, ahead of Nigeria with 5.8mn t, Kazakhstan on 4.9mn t and Algeria on 4mn t (see chart) . There is the possibility of further increases in US shipments this year. Rival light sweet grades from Libya are prone to disruption, Nigerian demand for domestic crude is growing as the 600,000 b/d Dangote refinery ramps up, and Kazakhstan is under pressure to compensate for exceeding its Opec+ output target and could limit deliveries of CPC Blend. While imports were high in October, overall French crude receipts in the first 11 months of last year were 42.9mn t, lower by 2.4pc on the year, the result of planned and unplanned refinery downtime. By Adam Porter French crude imports mn bl Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

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Q&A: Ewaba says EU biofuels policy should end loophole

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27/01/25

Q&A: Ewaba says EU biofuels policy should end loophole

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24/01/25

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24/01/25

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