The arrival of specialised new bunker tanker newbuildings beginning in January 2024 will permit Vitol to offer a full range of biofuel bunker blends in Singapore.
The company said on Tuesday that upon delivery of the first ship, wholly owned subsidiaries V-Bunkers and Vitol Bunkers will be able to offer biofuel blends from B24, B30 and up to B100 if customers request it.
The company said that although still at a nascent stage, demand for biofuel is expected to grow significantly in the coming years as the shipping industry looks at ways to decarbonise and cut emissions.
In Singapore, volumes of B24 biofuel have increased, with sales of more than 50kt in August, Vitol said, citing data from the Maritime and Port Authority of Singapore. Year-to-date sales are already more than double those in 2022.
“This trend is expected to continue into 2024, particularly with the IMO’s interim guidelines on biofuels becoming effective from 1 October 2023. These stipulate that certified biofuel will be able to reduce a vessel’s Carbon Intensity Indicator due to its near zero carbon factor on a well-to-wake basis,” Vitol said.
The specialised 8,000-dwt International Maritime Organization type-2 product/chemical bunker tankers that Vitol will start taking delivery of from January next year will allow the company to sell biofuel blends with concentrations higher than 25%.
Currently, all vessels delivering bunker fuel in Singapore are pure product tankers. These are permitted to only supply a fuel blended with biofuel up to 25% concentration. Higher concentrations require the use of IMO 2-type chemical tankers as stipulated by regulations from the United Nations shipping regulator.
“The delivery of specialist barges is an exciting development for Vitol and its sustainability offerings in Asia,” said Mike Muller, head of Vitol Asia.
“As the shipping industry steps up its pursuit of decarbonisation solutions, barges that can deliver bunker fuel with a much higher concentration of biofuels represents a material step in the right direction.”
VesselsValue data indicates that Vitol operates a fleet of 24 bunker tankers in Singapore and has a further eight on order at shipyards in China.
