Lloyd’s Register FOBAS analysis highlights transparency and quality challenges in biofuels

The recent analysis of Lloyd’s Register FOBAS shows its concern about excessive bunker silt levels, sulphur compliance failures, and flash point abnormalities. The analysis advises caution on the quality of biofuels.

The FOBAS report, which covers the second half of 2024, shows a notable rise in demand for biofuels, which do well in the current tightening bunker fuel climate. They can earn substantial compliance surpluses under FuelEU Maritime’s well-to-wake carbon emissions regime in addition to having low sulfur content. When the Mediterranean Sulphur Emissions Control Area (SECA) goes into effect in early May—less than two months from now—they are probably going to become more and more well-liked.

Therefore, it should come as no surprise that the FOBAS data shows an increase in demand for fatty acid methyl ester (FAME) residual mixes at bunkering centres such as Singapore, Algeciras, and the Amsterdam-Rotterdam-Antwerp region.

Many businesses are utilizing fuels as essential elements of their bunker plans. However, FOBAS raises concerns over the lack of transparency regarding the composition of biofuels and the possibility of low-quality biofuels getting into the bunker supply chain.

B30-Very Low Sulphur Fuel Oil (VLSFO) is proving to be popular, according to the research, which also notes that the off-spec content pertains to 70% of VLSFO rather than 30% biofuel. However, the non-compliant fuels, which were originally identified in the first half of last year, continue to be a worry and a potential source of compliance issues.

FOBAS reported that the ISO8217 RMG380 grade, in particular, exceeded the 0.5% restriction by up to 0.53%, accounting for over 2.5% of the VLSFO samples examined. The high sulphur concentration is nevertheless a problem even if the fuels technically still meet Marpol Annex VI rules, accounting for test precision allowances. Over 0.53% was found in around one-third of the examined samples, which could put vessels in the non-compliance category.

Sediment quantities were one of the other issues mentioned in the classification society’s study. Antwerp and Houston were identified as high-risk areas.

In the meantime, there were more marine gas oil samples with flash values lower than 60ºC which is the SOLAS minimum. According to the FOBAS research, this creates non-compliance problems and safety risks and can be connected to purposeful or inadvertent mixing with automobile diesel, which has a lower flash point restriction.

Owners of vessels involved in European trade now have to consider adhering to the new Mediterranean SECA as of May 1. This will necessitate the adoption of scrubbers that can scrub down to this level or ultra-low sulphur fuel oil with a sulphur content of 0.1 per cent or less. According to bunker experts, this will probably have a big effect on bunkering tactics and the hubs that supply bunkers in the Mediterranean, as well as outside the Strait of Gibraltar and east of Suez.