Asia/Pacific News
Chimbusco Pan Nation Sees Hong Kong Biofuel Bunker Demand Potentially Doubling by 2031
Marine fuel supplier, trader and alternative fuels firm Chimbusco Pan Nation (CPN) has said Hong Kong's biofuel bunker market has the potential to double in size by 2031.
The firm expects Hong Kong's demand for biofuel bunker blends to grow by 1.5-2 times over the next five years, Calvin Chung, director of CPN, told Ship & Bunker.
"Singapore will remain a key hub, no doubt, but Hong Kong is emerging as a very promising market," Chung said.
"Hong Kong's legal and business environment is highly efficient, and its proximity to China - Asia's largest biodiesel produce - gives it a strategic advantage.
"A shorter supply chain means greater supply stability and lower sourcing costs.
"And more importantly, Hong Kong's flexible policy framework allows for more cost-effective biofuel blending, which is a meaningful differentiator compared to other regional ports."
More widely in the region, the company expects Asian biofuel demand to grow by 5-10% per year over the same period.
Product Authenticity
Collaboration in the marketplace will be key to ensuring buyers receive biofuels with the GHG savings they have paid for, Chung added.
"As demand grows, so does the risk of mislabelled or non-compliant material entering the market.
"This is where collaboration becomes critical. Suppliers and buyers need to work together to establish transparency, adopt third-party verification, and ensure clear documentation.
"These practices should become the norm, not the exception.
"As Hong Kong's largest marine biofuel supplier and a major seller in China, we've developed strong expertise in compliance and quality assurance.
"This allows us to uphold sustainability standards even in cross-border trading environments."
Ammonia and Methanol
Looking ahead to the longer term, the firm sees a slower path for alternative fuels like ammonia and methanol to be adopted in shipping.
"Widespread adoption is unlikely before 2030," Chung said.
"FuelEU Maritime currently mandates a 2% reduction in GHG emissions, with its next major update scheduled for 2030.
"Based on this timeline, we anticipate demand for methanol and ammonia to remain relatively stable over the next five years."
"Also, cost remains a significant barrier, and there's still a lot of uncertainty around regulations and infrastructure readiness.
"Infrastructure development will also play a decisive role. Establishing mature port facilities for methanol and ammonia bunkering typically takes three to five years.
"Hong Kong is actively working on this, and once the infrastructure is in place, we expect demand to grow more substantially.
"It's a long-term play—the shift toward methanol and ammonia—but one we're preparing for with care and commitment."
Chung is set to appear on a panel at the IBIA Annual Convention in Hong Kong later this month.
The event is being hosted at the Renaissance Hong Kong Harbour View Hotel from November 18-20 as part of Hong Kong Maritime Week, and will see bunker industry representatives from around the world discussing the latest developments affecting marine fuels.
For more information on the event and to register, click here.
