China is planning its first export quota for marine bunker that is blended with biodiesel, partly to support biofuel producers hit earlier this year by European Union anti-dumping tariffs, according to two traders and a Chinese consultancy.
The government is considering the issue of 500,000 metric tons of such quotas and all will likely go to the country’s state oil firms CNPC, Sinopec and CNOOC, according to one state-oil trader and consultancy JLC.
The B24 marine fuel blend, separate from China’s exports of low-sulphur fuel oil which is also under quota management, contains 24% biodiesel and 76% low-sulphur fuel oil, said the two traders.
The quotas may be issued towards the end of the year or early next year, according to the state oil trader and JLC.
The plan is partly to help China’s biodiesel refiners hit by hefty anti-dumping tariffs the EU imposed in August that led to falling biofuel exports and forced the producers to seek new outlets.
The state refiners may aim to supply ships that sail between China and the EU where shipowners using lower-carbon bunker would be entitled to carbon credits, said the state oil trader.
Such a move would also help China’s Zhoushan port to boost sales volumes of marine biofuel, in line with attempts seen at other key bunker hubs globally, said a separate Chinese state oil trader.
The Ministry of Commerce did not immediately respond to a request for comment.
Demand for marine biofuel, mostly B24, has gained more traction this year at top refuelling hubs such as Singapore and Rotterdam, as shipowners seek to lower emissions.
Bunker volumes of marine biofuel at Singapore have climbed above 650,000 tons in 2024 so far, already surpassing full-year 2023 volumes of about 520,000 tons, based on latest port authority data.
Source: Reuters (Reporting by Chen Aizhu, Trixie Yap and Jeslyn Lerh. Editing by Mark Potter)
