EMEA News
Pricier Biofuel Could Depress Marine Demand in Rotterdam
Marine biofuel demand in Rotterdam could be curtailed under changes to the market-based mechanism, hernieuwbare brandstofeenheden (HBE).
HBE is there to encourage the take up of renewable fuels but a change to the blend ratio of biofuel that qualifies for the HBE could push up the price and make it less attractive, Johannes Schurmann of biofuel supplier Good fuels has said.
Dropping the multiplier from 0.8 to 0.4 means that a smaller amount of blended marine biofuel can be counted towards renewable energy targets (REDII).
For a marine biofuel blender, the net result will make supply more expensive compared to what it was.
Schurmann doesn't think that the multiplier will add up to a squeeze on supply but it could impact demand.
"There is enough supply, but the demand might drop due to the increased price," he told Ship & Bunker.
Biofuels are one among a number of alternative bunkers designed to move shipping along its decarbonisation path. The Dutch marine biofuel bunker segment is making strides globally, a fact that shouldn't be obscured by being overly concerned with what is going on in the road sector.
"The Dutch Government tends to prioritize roads," Schurmann said. "But the marine biofuel bunker market is important as we are a global frontrunner in this field," he added.
