Argus launches biofuel blended ship bunker price

Argus launched 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% used cooking oil methyl ester (UCOME) and 76% very-low sulphur fuel oil (VLSFO), delivered-on-board in Singapore.

The energy and commodity price reporting agency’s 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 optimise production, and in market analysis.

The shipping industry is under pressure to decarbonise. International Maritime Organisation regulations and changing consumer demand are driving the switch. Marine biodiesel such as B24 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 140,000t, with trade accelerating over the last three months of the year.