Bunker hubs to keep biofuel market dominance in 2025 as demand lags in smaller ports

Rotterdam and Singapore expected to host the majority of biofuel-blended deliveries in 2025 despite rising demand from FuelEU Maritime

Supply bottlenecks

Current regulations of the International Maritime Organization do not allow most bunker barges to carry cargo comprising of more than 25% biofuels, despite IMO regulations allowing vessel to run with blends of up to 30%.

Biofuel blends above 25% require chemical tankers that fall under Marpol Annex II, as biofuel as cargo blended at more than 25% is considered a “noxious liquid substance”, whereas most bunker barges fall under Marpol Annex I.

These regulations put Rotterdam and some other ports at an advantage, as these ports can use inland bunker barges that are not regulated by the IMO.

India, South Korea and the International Bunker Industry Association had requested the IMO to consider allowing Marpol Annex I vessels to carry biofuel blends above 25% ahead of the UN agency’s most recent Marine Environment Protection Committee in April this year.

The IMO referred this issue to its technical sub-committee called the Evaluation of Safety and Pollution (ESPH).

“IBIA recognises that biofuels are an increasingly important part of the fuel mix for international shipping to achieve its climate ambitions over the next decade,” said Edmund Hughes, IBIA’s representative to the IMO.

“Through a submission to MEPC 81 in March on the supply of biofuels to a ship for use as fuel oil on board that ship, IBIA has demonstrated its desire to fully support the Member States and the wider shipping industry achieve that climate ambition.”

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