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Biofuel Quality Issues Largely Tied to Fuel Oil Content, Not Bio Component: LR
Quality problems with biofuel blends are rarely being encountered, and when they are it tends not to be the biofuel component to blame, according to Lloyd's Register.
It argues that when quality problems do occur, these are primarily due to the 70% VLSFO component rather than the 30% bio component.
A rise in the number of vessels that regularly bunkered biofuel blends or conducted trials to gain operational experience was observed in 2024, with B30-VLSFO emerging as a popular blending ratio, LR said in a FOBAS Fuel Insight report.
"It is important to realize that with 70% VLSFO, the majority of reported issues relate to this part of the blend rather than the 30% FAME," LR stated.
LR asserts that problems such as high sulfur, cat fines, and sediment formation are linked to VLSFO, while FAME itself does not contribute to these issues.
Where issues may arise is when the FAME itself does not meet the required quality standards, such as EN14214. So far, this has not been a major problem.
Going forward, LR warns that as FAME supply may struggle to keep up with rising demand, there is a potential risk of quality deterioration. This will need to be carefully monitored.
LR also notes that some vessels are using FAME-based blends marketed under brand names, where suppliers set their own quality specification limits.
However, a lack of transparency regarding the exact composition of these blends raises concerns, particularly for clarity in GHG calculations. The absence of a clear definition of the blended products can be an issue.
That said, LR's experience with some of the more popular blends has generally been positive so far.
Singapore has been the leading hub for FAME-VLSFO biofuel bunkering, but the blend is also gaining popularity in Algeciras and ports across the ARA region, it said.
To view the LR report in full, click here.
Key Bunker Prices More
| VLSFO | MGO | |||
|---|---|---|---|---|
| $/mt | +/- | $/mt | +/- | |
| Singapore | 532.00 | 3.00 | 658.00 | 4.00 |
| Rotterdam | 504.00 | 5.00 | 663.00 | 10.50 |
| Houston | 531.00 | 4.50 | 685.00 | 4.00 |
| Fujairah | 527.00 | 2.50 | 747.00 | 0.00 |
| Global 20 Ports Average | 560.00 | 2.00 | 760.00 | 2.00 |
| Global 4 Ports Average | 523.50 | 1.50 | 688.00 | 4.50 |
| Global Average Bunker Price | 597.50 | 2.50 | 792.00 | 4.50 |
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