Biofuel Bunker Snapshot: Rising ZRE A ticket price weighs on Rotterdam bio-bunker prices

In recent weeks, the price of pure B100 (POMEME) biofuel in Rotterdam has risen by $23 per metric ton, reaching $1,327 per metric ton. The price has been volatile, falling by $100 per metric ton from last Friday to Thursday, before seeing a sharp increase in the past day. Dutch suppliers can create ZRE A tickets for selling low carbon fuels, which can be bought and sold among other suppliers.

The prices of these tickets have surged from €165 per metric ton CO2e ($192 per metric ton CO2eq) a week ago to €200 per metric ton CO2e ($232 per metric ton CO2eq) today, peaking at €283 per metric ton CO2e ($329 per metric ton CO2eq) yesterday. Prima Markets analyst Ulrich Arnheiter explained that the increase in demand for these tickets is due to compliance buyers aggressively purchasing them, rather than speculative buying.

The rising demand for ZRE A tickets may suggest that suppliers are generating less compliance from biofuel bunkering than their obligations require. Additionally, the cost of biofuel feedstock has risen, with the POMEME barge price assessed by Prima Markets increasing $7 per metric ton to $2,024 per metric ton over the past week, a 7% increase or $131 per metric ton over the last month.

Meanwhile, Rotterdam's B30-VLSFO price has decreased by $19 per metric ton over the past week, despite a $17 per metric ton increase in the Dutch port's conventional VLSFO price during the same period. Rotterdam's B30-LSMGO price has increased by $68 per metric ton in the past week, with a $122 per metric ton surge in the port's conventional LSMGO price providing support.

In Gibraltar, the B30-VLSFO price is $1,155 per metric ton, a $50 per metric ton premium over Lisbon's B30-VLSFO price. Lisbon's B30-LSMGO price is $1,714 per metric ton, an $81 per metric ton premium over the port's conventional LSMGO price. Singapore's B30-VLSFO price has surged by $54 per metric ton to $1,105 per metric ton, while the port's conventional VLSFO price has increased by $35 per metric ton in the same period, likely supporting the biofuel blend's price.