SINGAPORE, Oct 24 (Reuters) - Global energy trader Vitol will be delivering specialised bunker barges at Singapore in early 2024, and will be able to offer a range of biofuel blends through its subsidiaries V-Bunkers and Vitol Bunkers, the company said in a statement on Tuesday.
The move comes as biofuel bunkering gains traction and market interest at the world's largest bunker hub Singapore, with the maritime industry seeking ways to decarbonise and move away from traditional dirty bunker fuels.
From early 2024, Vitol will be able to offer a range of biofuel blends, including B24, B30, and up to B100, on customer request.
The first IMO Type 2 barge ordered by V-Bunkers will be delivered in January, followed by several more throughout 2024, said Vitol.
"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," said Mike Muller, head of Vitol Asia.
Depending on demand, these vessels could also be upgraded to supply methanol, said Vitol.
Currently, all vessels delivering bunker fuel in Singapore are oil tankers and are allowed to only supply marine fuel blended with up to 25% concentration biofuel.
Any blend of greater concentration will require an IMO Type 2 chemical tanker, based on the International Maritime Organisation (IMO).
Singapore's total sales for biofuel-blended marine fuels surpassed 300,000 tons in 2023 so far, more than double from 2022's total volume, data from Singapore's Maritime and Port Authority showed.
All licenced bunker suppliers and bunker craft operators are also required to issue a proof of sustainability with the bunker delivery note when biofuel is supplied for bunkering at Singapore, said MPA last week.
Amid expectations of higher uptake, the International Maritime Organisation has also issued interim guidelines on biofuels from October this year.
(Reporting by Jeslyn Lerh; editing by Miral Fahmy)
