“Looking ahead to 2025, we foresee a potential surge in biofuel (bunker) demand in Singapore,” Louise Tricoire, vice-president at TotalEnergies Marine Fuels said. —Reuters.
SINGAPORE: Marine biofuel demand at the world’s largest bunker hub in Singapore could potentially double by 2025 to almost one million tonnes from 2023 levels as shippers seek to cut emissions, a senior TotalEnergies executive says.
More shipping companies have been conducting refuelling trials using marine biofuel as an alternative to conventional fuel oil to reduce carbon emissions.
“Looking ahead to 2025, we foresee a potential surge in biofuel (bunker) demand in Singapore, potentially nearing one million tonnes a year,” Louise Tricoire, vice-president at TotalEnergies Marine Fuels told Reuters.
Bio-blended marine-fuel sales in Singapore more than tripled to over 500,000 tonnes last year, data from Singapore’s port authority showed.
Total sales in 2023 surpassed initial estimates as regulations on carbon intensity indicators (CII) boosted growth, said Tricoire.
A CCI is a measure of how efficiently a ship transports goods or passengers in grammes of carbon dioxide emitted per cargo-carrying capacity and nautical mile.
The International Maritime Organisation last year approved interim guidelines on how certified sustainable biofuels could be used to improve a ship’s CII rating.
However, the demand outlook is still contingent upon biofuel pricing and development of more infrastructure such as barging and tanking facilities, said Tricoire.
Bunker prices of B24 bio-marine fuel blend remain at least US$200 above 0.5% low sulphur fuel oil, a price gap that still deters mass adoption, industry sources said. — Reuters
