In the United Kingdom, S&P Global Platts reports that some market participants have been promoting the blending of biofuels as a way of reducing emissions in preparation for the International Maritime Organization’s tighter sulfur emission standards, but actual uptake is slow. Installing scrubbers to collect excess sulfur from traditional marine fuel is one way to meet the new IMO stadnards that come into force in 2020, but increasing biofuels is being promoted as of late as an alternative to the scrubbers.
“If [the biofuels] are cheaper than other cutterstocks, suppliers will use them,” one global bunker buyer told S&P Global Platts, adding that some physical bunker suppliers in the Mediterranean are already blending biofuel into their products.
S&P Global Platts reports, however, that there are still challenges with biofuel in the shipping sector, like what country the ship flies from, the nationality of the bunkering company, where the refueling port is located, as well as other issues like biofuel cold weather properties, energy content, and more.
Category: Producer News