China is planning to ship a biofuel blend overseas in its first export quota for the greener bunkers.
The move is being made partly to support biofuel producers hit earlier this year by European Union anti-dumping tariffs, according to two traders and a Chinese consultancy cited by Reuters.
The government is considering contracts to export 500,000 tonnes of the B24 blend, the report said.
The business is tipped to go to China’s state oil firms CNPC, Sinopec and CNOOC, according to one trader and consultancy JLC.
The quotas will mean additional demand for product tankers loading in China.
The B24 product contains 24% biodiesel and 76% low-sulphur fuel oil. Quotas will be separate from other fuels.
Deals could be awarded towards the end of 2024 or early next year, according to the state oil trader and JLC.
EU tariffs imposed in August have caused biofuel exports to fall.
The bunkers could end up on long-haul tankers heading to the EU.
Demand rising at big refuelling hubs
China’s Zhoushan port could also boost sales through the tenders.
China’s ministry of commerce has not commented.
Owners have been seeking more B24 fuel at hubs such as Singapore and Rotterdam this year as they aim to cut emissions.
Singapore Port Authority data suggests more than 650,000 tonnes have been sold so far in 2024, up from 520,000 tonnes last year.
Earlier on Monday, Norwegian car carrier owner Wallenius Wilhelmsen said it had figured out how to start pricing in alternative fuels and wants the rest of the industry to follow its lead.
The giant owner is set to launch its Bunker Adjustment Factor 2.0, or BAF2.0, in the new year, slowly phasing new fuel types into its fuel surcharge calculation.
