Vitol targets Singapore biofuel growth

Vitol is strengthening its position in Asia’s expanding biofuel market, with the delivery of specialised bunker barges to Singapore in 2024.

From early next year, Vitol through its wholly-owned subsidiaries V-Bunkers and Vitol Bunkers will be able to offer a range of biofuel blends, from B24, B30 and even up to B100 if customers request it.

Currently, all vessels delivering bunker fuel in Singapore are oil tankers. These are permitted to only supply a fuel blended with biofuel up to 25% concentration. Any greater and IMO regulations stipulate an IMO Type 2 chemical tanker ship is required.

The first IMO-Type 2 barge ordered by V-Bunkers will be delivered in January, to be followed by several more throughout 2024. Depending on demand, these vessels could also be upgraded to supply methanol.

In Singapore, volumes of B24 biofuel have increased, with sales of more than 50,000 tons in August, according to the Maritime and Port Authority of Singapore (MPA). And year-to-date sales are already more than double those in 2022.

 This trend is expected to continue into 2024, particularly with the International Maritime Organisation’s (IMO) interim guidelines on biofuels becoming effective from the start of this month. These stipulate that certified biofuel will be able to reduce a vessel’s Carbon Intensity Indicator (CII) due to its near zero carbon factor on a well-to-wake (WTW) basis.