Malaysia to roll out 20pc biofuels mandate in 2022

Market: Agriculture, Biofuels
05/01/22

Malaysia will increase its on-road biodiesel blending mandate to 20pc (B20) in Sabah and peninsular Malaysia by the end of this year, delegates were told today at the annual Malaysian Palm Oil Council industry seminar.

Kuala Lumpur has already pushed back a nationwide rollout several times because of funding pressure from the Covid-19 pandemic and possibly as record-high crude palm oil (CPO) feedstock prices inflated the cost of subsidising the programme.

Bursa Malaysia-listed CPO futures dropped off towards the end of 2021 after the active third-month contract reached an all-time high of 5,081 ringgit/t ($1,210/t) on 20 October. But supply concerns among buyers following recent flooding across peninsular Malaysia drove an increase back over the 5,000 ringgit/t threshold by today's Singapore close.

The government is now working to upgrade infrastructure at 30-35 fuel depots before the B20 mandate can be launched, which will cost around 50mn ringgit in total.

Biodiesel blending for industrial applications remains at 7pc, with no date set yet for increasing the mandate to B10.

Malaysia has around 2mn-2.5mn t/yr of biodiesel capacity, with a full B20 mandate expected to consume roughly 1.1mn t/yr, leaving plenty of excess volumes for export. Malaysian palm methyl ester biodiesel exports dropped to 306,910t in 2021, the lowest volume in at least four years, according to cargo surveyor AmSpec.

By Lauren Moffitt

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23/04/25

Brazilian wildfires burn 70pc less area in 1Q

Sao Paulo, 23 April (Argus) — Wildfires in Brazil scorched an area almost equivalent to the size of Cyprus in January-March, but still 70pc less than in the same period in 2024 as the rainy season was above average in most of the north-central part of the country this year. The wildfires spread out over 912,900 hectares (ha) in the first three months of 2025, down from 2.1mn ha in the same period of 2024, according to environmental network MapBiomas' fire monitor researching program. The reduced burnt areas are related to the rainy season in most of the country, but still-high wildfire levels in the Cerrado biome showed that specific strategies are necessary for each biome to prevent further climate-related impacts, researchers said. The Cerrado lost 91,700ha to wildfires in the first quarter, up by 12pc from a year before and more than double from the average since 2019. Burnt areas in the Atlantic forest also increased 18,800ha in the period, up by 7pc from a year earlier. Wildfire-damaged areas in the southern Pampa biome, or low grasslands, grew by 1.4pc to 6,600ha. The Amazon biome lost over 774,000ha to wildfires in the first quarter of 2025, a 72pc drop from a year earlier, while it accounted for almost 52pc of burnt areas in March. The loss represented 84pc of the total burnt land in the period. Burnt areas in the central-western Pantanal biome, or tropical wetland, fell by 86pc in the first quarter to 10,900ha. The northeastern Caatinga biome, or seasonally dry tropical forest, lost around 10,000ha in burnt areas, down by 8pc from the same period in 2024. Reductions may not persist as a drought season will begin in May and is expected to be severe, according to Mapbiomas. Last year, an extended drought season prompted burnt areas to grow by 79pc from 2023. Northern Roraima state was the state to suffer the most from wildfires in the period, with 415,700ha lost to wildfires during its distinct drought season in the beginning of the year, while other states faced a rainy season. Northern Para and northeastern Maranhao followed, with 208,600ha and 123,800ha of burnt areas, respectively. Wildfires hit over 24,730ha of soybean fields in the period, a 29pc decrease from a year earlier, while burnt areas in sugarcane fields fell by 31pc to around 7,280ha. Wildfires hit 106,600ha of the country in March, a 86pc decrease from 674,900ha a year earlier. By João Curi Burnt areas in March ha 2025 2024 Amazon 55,172 732,929 Cerrado 37,937 20,995 Atlantic Forest 9,262 4,509 Caatinga 2,296 755 Pampa 1,514 127 Pantanal 562 21,799 Total 106,641 781,114 — Mapbiomas - Monitor do fogo Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

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Bio-bunker sales in Rotterdam down in 1Q

23/04/25

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23/04/25

Bio-bunker sales in Rotterdam down in 1Q

London, 23 April (Argus) — Sales of marine biodiesel blends in Rotterdam fell for the third consecutive quarter in January-March as demand shifted east of Suez. Port data for the first quarter of 2025 show marine biodiesel blend sales declined by 12pc compared with the previous three months and by 60pc compared with the same period last year. The decline was underpinned by lower prices in Singapore. B24 dob Singapore — a blend comprising very low sulphur fuel oil (VLSFO) and used cooking oil methyl ester (Ucome) — averaged a $36/t discount against B30 advanced fatty acid methyl ester (Fame) 0 dob ARA in the first quarter, and a $129.74/t discount against B30 Ucome dob ARA. This price dynamic made Singapore an attractive bunker hub for those shipowners opting to use biodiesel blends to help their customers meet sustainability goals. It also attracted demand from shipowners bound by the FuelEU maritime regulations introduced in January this year. The regulations require a reduction in greenhouse gas (GHG) emissions from ships travelling into, out of and within EU waters, but energy consumed from blends bunkered in Singapore can be mass balanced to be fully accounted for under the scope of the rules. A pooling mechanism within the regulations also allows vessels operating on the east-west route to utilise compliance generated from marine biodiesel blends bunkered in Singapore across other ships that operate solely in Europe. While biodiesel bunker sales in Rotterdam fell, biomethanol sales at the port soared almost sixfold in January-March compared with a year earlier. The sharp rise in demand reflects the rollout of FuelEU Maritime , higher mandates in Europe for the use of renewables in transport this year and changes to regulations on the carryover of renewable fuels tickets in Germany and the Netherlands . Sales of conventional bunker fuels in Rotterdam edged up by a more modest 1pc on the quarter and by 7pc on the year. Sales of high-sulphur fuel oil (HSFO) overtook those of very low sulphur fuel oil (VLSFO), reversing the trend of the previous quarter despite the imminent addition of the Mediterranean Sea as an Emission Control Area (ECA). Ships without scrubbers that sail through ECA zones must use fuels with a maximum sulphur content of 0.1pc, such as marine gasoil (MGO) and ultra low sulphur fuiel oil (ULSFO). LNG bunker sales in Rotterdam fell by the 13pc on the quarter in January-March, reflecting a price rally at the Dutch TTF gas hub in late January and early February. The Argus northwest Europe LNG bunker price stood at a two-year high of €64.35/MWh on 6 February. LNG bunker sales were still higher than in the first quarter last year, which likely stems from the introduction of the FuelEU Maritime regulations. By Hussein Al-Khalisy, Natália Coelho, Gabriel Tassi Lara, Evelina Lungu and Cerys Edwards. Rotterdam bunker sales t Fuel 1Q25 4Q24 1Q24 q-o-q % y-o-y % VLSFO 789,218 810,831 680,782 -2.7 15.9 ULSFO 187,031 193,567 176,797 -3.4 5.8 HSFO 829,197 780,437 818,028 6.2 1.4 MGO & MDO 393,071 395,903 383,409 -0.7 2.5 Conventional total 2,198,517 2,180,738 2,059,016 0.8 7 Biofuel blends 104,037 118,201 262,634 -12 -60.4 LNG (m³) 230,129 263,068 215,247 -12.5 6.9 biomethanol 5,490 930 0 490.3 na Port of Rotterdam Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

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NEa tracks first maritime CO₂ submissions

22/04/25

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22/04/25

NEa tracks first maritime CO₂ submissions

Amsterdam, 22 April (Argus) — The Netherlands Emissions Agency (NEa) has reported that shipping companies are being held financially accountable for the first time for their CO₂ emissions under the EU Emissions Trading System (ETS). The companies are now required to report their 2024 emissions and will have to surrender corresponding carbon allowances by 30 September. Of the 378 shipping companies assigned to the Netherlands by the European Commission, roughly 60pc met the initial 31 March deadline for submitting verified emissions reports. The group represents more than 1,400 vessels, around 75pc of which are operated by companies registered in the Netherlands and 25pc outside the EU. An additional 14pc of companies filed their reports after the deadline, bringing overall compliance to 74pc as of mid-April. NEa expects more reports to follow. Under the revised EU ETS , shippers have to surrender ETS allowances for 50pc of GHG emissions for extra-EU journeys. Surrender obligations for intra-EU shipping are phased in at 40pc of verified emissions reported for 2024, 70pc for 2025 and 100pc for 2026 onwards. From 2026, shipping firms will also have to report emissions of methane (CH₄) and nitrous oxide (N₂O). The EU sees the move as essential to meeting its climate targets, as shipping alone accounted for over 124mn t of CO₂ emissions in 2021, according to the commission's report. By Anna Prokhorova Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

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Bulk organic imports avoid US fees on Chinese ships

22/04/25

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22/04/25

Bulk organic imports avoid US fees on Chinese ships

Minneapolis, 22 April (Argus) — The fees imposed by the US on Chinese-built vessels will not significantly impact maritime organic imports to the US due to exceptions for small bulk vessels, but containerized imports will face some fees. The US announced Thursday that it will impose fees of $50/net ton (nt) on Chinese ship operators and $18/nt, or $120/container, on Chinese-built ships. Most organic imports to the US, especially for corn and organic soybeans, use bulk vessels to ship to the US. During the 2024-25 marketing year through March, no bulk vessel bringing organic corn and soy products into the country exceeded 70,000 dwt, according to bill of lading data. The fees will exclude any Chinese-built bulk vessel with a capacity of under 80,000 dwt, according to the US Trade Representative (USTR). As a result, bulk organic imports into the US will avoid these fees, even if imported on a Chinese ship. Some organic imports are brought in using containers. For a container with 21 metric tonnes (t) of organic soybeans, a fee of $120/container would be $0.16/bushel. The fee would be similar for a container of organic corn, but organic corn is rarely imported via container. The fee for a container with 21t of organic soybean meal will be $5.18/short ton. Some exporters to the US are more exposed to the fees on containers because of higher use of containerized freight. Shipments from the Black Sea used entirely bulk vessels over the past year, which will avoid the fees. Exporters in Africa and India, however, use containers for most exports and will be more exposed. Africa supplied 50pc of US maritime organic soybean meal imports during the 2023-24 marketing year, according to Argus estimates. All imports of organic soybeans from Argentina since last May used bulk vessels because of the higher cost of containerized freight to the US. If containerized freight rates between the US and Argentina fall, some organic commodities could be exported to the US by containers. Organic imports could also face some delays because of these fees, market contacts said. Some containers may wait at port longer until a non-Chinese-built vessel is available to ship the product to the US. This would lead to longer shipping times into the US and potentially to demurrage charges. The fees will take effect in October and will escalate over the next three years. The fees on a container brought in on a Chinese-built vessel will grow each year from $120/container in 2025 to reach $250/container in April 2028. By Alexander Schultz Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

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IMO incentive to shape bio-bunker choices: Correction

21/04/25

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21/04/25

IMO incentive to shape bio-bunker choices: Correction

Corrects B30 pricing in paragraph 5. New York, 21 April (Argus) — An International Maritime Organization (IMO) proposal for ship owners who exceed emissions reduction targets to earn surplus credits will play a key role in biofuel bunkering options going forward. The price of these credits will help determine whether B30 or B100 becomes the preferred bio-bunker fuel for vessels not powered by LNG or methanol. It will also influence whether biofuel adoption is accelerated or delayed beyond 2032. At the conclusion of its meeting earlier this month the IMO proposed a dual-incentive mechanism to curb marine GHG emissions starting in 2028. The system combines penalties for non-compliance with financial incentives for over-compliance, aiming to shift ship owner behavior through both "stick" and "carrot" measures. As the "carrot", ship owners whose emissions fall below the IMO's stricter compliance target will receive surplus credits, which can be traded on the open market. The "stick" will introduce a two-tier penalty system. If emissions fall between the base and direct GHG emissions tiers, vessel operators will pay a fixed penalty of $100/t CO2-equivalent. Ship owners whose emissions exceed the looser, tier 2, base target will incur a penalty of $380/t CO2e. Both tiers tighten annually through 2035. The overcompliance credits will be traded on the open market. It is unlikely that they will exceed the cost of the tier 2 penalty of $380/t CO2e. Argus modeled two surplus credit price scenarios — $70/t and $250/t CO2e — to assess their impact on bunker fuel economics. Assessments from 10-17 April showed Singapore very low-sulphur fuel oil (VLSFO) at $481/t, Singapore B30 at $740/t, and Chinese used cooking oil methyl ester (Ucome), or B100, at $1,143/t (see charts). If the outright prices remain flat, in both scenarios, VLSFO would incur tier 1 and tier 2 penalties, raising its effective cost to around $563/t in 2028. B30 in both scenarios would receive credits putting its price at $653/t and $715/t respectively. In the high surplus credit scenario, B100 would earn roughly $580/t in credits, bringing its net cost to about $563/t, on par with VLSFO, and more competitive than B30. In the low surplus credit scenario, B100 would earn just $162/t in credits, lowering its cost to approximately $980/t, well above VLSFO. At these spot prices, and $250/t CO2e surplus credit, B100 would remain the cheapest fuel option through 2035. At $70/t CO2e surplus credit, B30 becomes cost-competitive with VLSFO only after 2032. Ultimately, the market value of IMO over-compliance credits will be a major factor in determining the timing and extent of global biofuel adoption in the marine sector. By Stefka Wechsler Scenario 1, $70/t surplus credit $/t Scenario 2, $250/t surplus credit $/t Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

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