SINGAPORE biofuel-blended bunker sales exceeded those in Rotterdam for the first time on record in the third quarter, driven by rising demand in the world’s top refuelling hub on the back of more competitive pricing and regulatory certainty.

Biodiesel-blended fuel sales reached 227,000 tonnes in Singapore during the third quarter, compared with Rotterdam’s 139,000 tonnes, marking the lowest quarterly volume since 2021 at the Dutch port, according to figures from the two port authorities.

Dutch renewable fuel subsidies (HBE) boosted biodiesel bunkering in Rotterdam in recent years, with bio-blended sale volumes remaining above 200,000 tonnes in the previous three quarters.

In Singapore, biodiesel bunkering has risen consistently in recent years owing to voluntary demand from shipping companies. Rising supply in Singapore helped propel biodiesel bunker prices to more competitive levels with Rotterdam in 2024.

The price of a 24% biodiesel / 76% very low sulphur fuel oil blend (B24) in Singapore averaged $716 per tonne in the third quarter, compared with $834 in the same period last year, according to price reporting agency Argus Media.

In the third quarter, Singapore B24 prices were at a $34 premium to Rotterdam’s biodiesel-blended VLSFO prices (B20), sharply down from $147 in July-September 2023, Argus data shows.

Uncertainty around renewable fuel regulations in Rotterdam put Singapore at an advantage along with competitive prices, according to Johannes Schürmann, commercial director at Dutch biodiesel supplier FincoEnergies.

Because of regulatory complexities in Rotterdam such as proof of sustainability and feedstock types could prompt some shipping companies to move their demand to Singapore, said Schürmann.

There are questions around the compatibility between Dutch renewable fuel subsidies and proof of sustainability certificates including the International Sustainability and Carbon Certification.

FincoEnergies also viewed a slower push from cargo owners for green fuels, caused partly by carbon accounting uncertainties and economic headwinds.

Singapore and Rotterdam could compete for biodiesel deliveries to ships in the coming months, as the FuelEU Maritime legislation will boost demand.

Voluntary demand is likely to remain a key factor for biodiesel sales, as Maersk’s bunker subsidiary was the top biodiesel supplier in Singapore last year partly owing to its Eco Delivery scheme that allows cargo owners to reduce Scope 3 emissions by using biodiesel bunkering on vessels carrying their cargo.