Biofuel Bunker Snapshot: Rotterdam’s B30-VLSFO premium over VLSFO narrows

Rotterdam's price for B30-VLSFO (POMEME) has risen $36 per metric ton in the past week, while conventional VLSFO's price has increased $54 per metric ton over the same period. This has reduced Rotterdam's B30-VLSFO premium over conventional VLSFO by $17 per metric ton to $174 per metric ton. Dutch suppliers can now issue ZRE A tickets for selling low-carbon fuels, which can be traded with other suppliers.

The price of these tickets remains at €240 per metric ton of CO2e ($269 per metric ton of CO2e) on Thursday, unchanged from last Thursday. These ZRE A tickets help lower Rotterdam's biofuel prices compared with other ports. Belgium lacks such a mechanism. Prima Markets' prices for ARA UCOME and POMEME barge cargoes, indicators of feedstock sourcing costs, have each risen $45 per metric ton in the past week to $1,755 per metric ton and $1,825 per metric ton, respectively.

This leaves UCOME at a $70 per metric ton discount to POMEME. Higher feedstock costs could explain Rotterdam's B30-VLSFO price rise. Rotterdam's B30-LSMGO (POMEME) price has gained $13 per metric ton to $1,430 per metric ton, slightly surpassing a $12 per metric ton rise in the port's conventional LSMGO price. This has increased Rotterdam's B30-LSMGO premium over conventional LSMGO by $2 per metric ton to $23 per metric ton.

B100 has been priced at $1,261 per metric ton in Rotterdam today, $76 per metric ton higher than last week. In neighboring Belgian port Antwerp, B100 is priced at $1,984 per metric ton today, up $52 per metric ton in the past week and $723 per metric ton more than Rotterdam. B30-LSMGO is priced at $1,570 per metric ton in Portugal's Aveiro, a $64 per metric ton premium over the port's conventional LSMGO price.

B-100 is priced at $1,712 per metric ton in Aveiro. Singapore's B30-VLSFO (UCOME) price has jumped $56 per metric ton in the past week to $1,150 per metric ton, while the port's conventional VLSFO price has only gained $12 per metric ton over the same period. This has increased Singapore's B30-VLSFO premium over conventional VLSFO by $45 per metric ton to $241 per metric ton.

Prima Markets' price assessment for China UCOME cargo, a key feedstock for Singapore's B30-VLSFO blend, has risen $5 per metric ton to $1,220 per metric ton. Logistics firm DSV will use CMA CGM's biofuel bunkering service to claim around 12,000 metric tons of CO2e emissions reductions for its ocean freight operations.