Argus Media
Jan 31, 20231 min
Global energy and commodity price reporting agency Argus launched Jan. 31 the world’s first independently assessed price for ship fuel that includes a biofuel component.
The new B24 daily assessment reflects the market value of “bunkers”—as ship fuel is known—made up of 24 percent used cooking oil methyl ester (UCOME) and 76 percent very-low sulfur fuel oil (VLSFO), delivered-on-board in Singapore.
The shipping industry is under pressure to decarbonize. International Maritime Organization regulations and changing consumer demand are driving the switch.
Marine biofuel such as B24 blends of biodiesel can be used with existing engine technologies, allowing it to deliver an immediate carbon reduction.
In Singapore, the world’s biggest bunkering hub, the B24 market is growing rapidly. Sales in 2022 were more than 140,000 tons, with trade accelerating over the last three months of the year.
The Argus B24 price assessment is underpinned by a transparent methodology based on market transactions, bids and offers.
It can be used by companies in contracts, for mark-to-market valuations, to optimize production, and in market analysis.
“The maritime industry is embracing the need to evolve and reduce greenhouse-gas emissions,” said Adrian Binks, Argus Media chairman and chief executive. “Our new B24 assessments are the world’s first biofuel bunker prices and bring vital transparency to this new and emerging market, which will play an increasingly important role while the industry transitions to develop cost-effective zero-carbon solutions."