Singapore Marine Biofuel Premiums Drop Further on Soft Demand

Sustainable Development Goals (SDGs) and Marine Biofuel Market in Singapore

Introduction

Singapore, April 11 (Reuters) – The marine biofuel market in Singapore, the world’s largest bunker hub, is experiencing weakened premiums due to slow demand, according to market sources.

Market Performance

Premiums for the flagship B24 marine biofuel blend have recently traded between $120 to $130 per metric ton over 0.5% low sulfur fuel oil quotes, on a delivered Singapore basis. This marks a decline from the early first quarter when the product traded down to about $140 a ton and between $145 and $170 at the end of 2023.

Despite some sellers attempting to hold offers at premiums of $140 to $150 in recent days, there has been muted buying interest.

Shippers’ Perspective

Shippers primarily purchase marine biofuel for trials rather than regular procurement as they explore alternative fuels to reduce carbon emissions.

B24 Blend

The B24 blend, which is the current benchmark grade for marine biofuel, consists of 24% used cooking oil methyl ester (UCOME) and 76% very low sulfur fuel oil (VLSFO).

Impact on Sustainable Development Goals (SDGs)

1. SDG 7: Affordable and Clean Energy – Marine biofuel contributes to the goal of promoting clean and sustainable energy sources in the maritime industry.
2. SDG 13: Climate Action – The exploration and use of biofuels align with efforts to mitigate climate change and reduce carbon emissions.
3. SDG 14: Life Below Water – The marine biofuel market supports the preservation and conservation of marine ecosystems by reducing pollution from traditional fossil fuels.
4. SDG 17: Partnerships for the Goals – Collaboration between bunker suppliers, trading firms, shipowners, and other stakeholders is essential to drive the adoption and development of sustainable biofuels.

Market Outlook

Singapore’s annual bio-bunker volumes more than tripled in 2023, but monthly volumes have slowed in 2024. Sales in February 2024 reached their lowest point since August 2022, according to the latest available data from Singapore’s port authority.

Conclusion

The marine biofuel market in Singapore is currently experiencing weakened premiums due to slow demand. However, the use of biofuels aligns with several Sustainable Development Goals, including affordable and clean energy, climate action, and the preservation of marine ecosystems. Continued collaboration and partnerships are crucial for the growth and development of sustainable biofuels in the maritime industry.

SDGs, Targets, and Indicators

1. SDG 7: Affordable and Clean Energy

   • Target 7.2: Increase substantially the share of renewable energy in the global energy mix.
   • Indicator: Percentage of renewable energy in the global energy mix.

2. SDG 13: Climate Action

   • Target 13.2: Integrate climate change measures into national policies, strategies, and planning.
   • Indicator: Existence of national policies, strategies, and planning that integrate climate change measures.

3. SDG 14: Life Below Water

   • Target 14.1: By 2025, prevent and significantly reduce marine pollution of all kinds.
   • Indicator: Amount of marine pollution, measured in metric tons.

Analysis

The article discusses the weakening premiums for marine biofuel at Singapore’s bunker hub. This issue is connected to several Sustainable Development Goals (SDGs) and their corresponding targets:

SDG 7: Affordable and Clean Energy

The use of marine biofuel as an alternative fuel aims to reduce carbon emissions, contributing to the goal of affordable and clean energy. The article mentions slow demand for marine biofuel, indicating that the transition to renewable energy sources is not progressing as quickly as desired.

SDG 13: Climate Action

The integration of climate change measures, such as the use of biofuels, into national policies and strategies is a target under SDG 13. The article highlights the exploration of biofuel by shippers to reduce carbon emissions, indicating efforts towards climate action.

SDG 14: Life Below Water

The prevention and reduction of marine pollution is a target under SDG 14. Marine biofuel, as a cleaner alternative to traditional fuels, can contribute to reducing marine pollution. The article mentions the B24 blend, which combines used cooking oil methyl ester with low sulfur fuel oil, indicating a potential reduction in marine pollution.

Based on the article’s content, the following targets and indicators can be identified:

Target 7.2: Increase substantially the share of renewable energy in the global energy mix.

• Indicator: Percentage of renewable energy in the global energy mix.

Target 13.2: Integrate climate change measures into national policies, strategies, and planning.

• Indicator: Existence of national policies, strategies, and planning that integrate climate change measures.

Target 14.1: By 2025, prevent and significantly reduce marine pollution of all kinds.

• Indicator: Amount of marine pollution, measured in metric tons.

Table: SDGs, Targets, and Indicators

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Source: gcaptain.com

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