Bio-fuel : Current price and development
Updated: Jan 13, 2021
What is Bio-fuel?
Biofuel, or Biodiesel is currently available for purchase at the port of ARA, mainly in small quantities and by truck. Bio-fuel/Diesel is sourced from biomass, and as it is refined it’s suitable to burn as bunkers.
A biofuel is any liquid fuel derived from biological material such as trees, agricultural wastes, crops, or grass https://learnbioenergy.org/
The Bioenergy discovery museum has helpful information about how biofuel is produced.
The standard Specification for biofuel is under EN 14214 which can be accessed via wikipedia
What is the current price of biofuel bunkers?
Currently, the market price per MT (metric ton) is about 150-200$ more than LSMGO (low-sulfur Marine Gas Oil). Our article from last month (Reference article), showed that prices were about 490$ pmt. The prices were calculated based on Platts daily sustainable aviation fuel price. We checked this last year around the same time, and found that prices were still very high, 900-1000 $ pmtd (this was the delivered price). This shows that there have been some fairly significant fluctuations and reductions in pricing over the past 12 months, and we’ll keep you informed about any other major changes in this area in future blogs.
Another interesting development to let you know about is that this year, Germany and the Netherlands are constructing their first Bio-LNG plant Bio-LNG is the LNG (Liquified Natural Gas) made out of biomass/biomethane, . Bio-LNG and is part of an initiative to lower carbon emissions across the transport network.