Global energy trader Vitol is gearing up to make a significant contribution to the maritime industry's decarbonization efforts by delivering specialized bunker barges to Singapore in early 2024. This move comes as the demand for biofuel bunkering gains momentum, especially in the world's largest bunker hub, Singapore, as the maritime sector seeks eco-friendly alternatives to traditional, environmentally harmful bunker fuels.
Vitol, through its subsidiaries V-Bunkers and Vitol Bunkers, will introduce a range of biofuel blends to cater to the evolving needs of the shipping industry. Starting from early 2024, Vitol will offer various biofuel blends, including B24, B30, and even up to B100, based on customer requests.
The company has already placed orders for the first IMO Type 2 barge through V-Bunkers, which is expected to be delivered in January. Several more such specialized bunkers will follow throughout 2024, according to Vitol.
Mike Muller, head of Vitol Asia, highlighted the significance of these innovative bunkers, saying, “As the shipping industry steps up its pursuit of decarbonization solutions, barges that can deliver bunker fuel with a much higher concentration of biofuels represent a material step in the right direction.”
Moreover, depending on market demand, these vessels could potentially be upgraded to supply methanol, offering a versatile and sustainable solution.
Currently, all vessels delivering bunker fuel in Singapore are oil tankers and are limited to supplying marine fuel blended with a maximum of 25% biofuel concentration. To handle blends of higher concentration, an IMO Type 2 chemical tanker is required, in accordance with the regulations set by the International Maritime Organization (IMO).
Singapore has witnessed a remarkable surge in sales of biofuel-blended marine fuels, surpassing 300,000 tons in 2023, more than double the volume recorded in 2022, according to data from Singapore's Maritime and Port Authority.
Furthermore, in a recent development, the Maritime and Port Authority announced that all licensed bunker suppliers and bunker craft operators are now obligated to issue a proof of sustainability along with the bunker delivery note when biofuel is supplied for bunkering in Singapore, reinforcing the commitment to environmentally responsible practices.
As the maritime industry continues to embrace cleaner and more sustainable energy sources, the International Maritime Organization has also issued interim guidelines on biofuels starting from October this year, reflecting the growing importance of biofuels in the global effort to reduce carbon emissions in the shipping sector.
