China is set to introduce its first export quota for marine bunker fuel blended with biodiesel, aiming to support local biofuel producers. The planned quota would total 500,000 metric tons, with most of it likely to be allocated to state-owned oil companies CNPC, Sinopec, and CNOOC, according to industry traders and consultancy JLC.
The B24 marine fuel blend, which comprises 24% biodiesel and 76% low-sulfur fuel oil, will be part of the new export quota. The quotas are expected to be issued either at the end of this year or early next year, as per industry sources.
This move is designed to assist China’s biodiesel refiners, who have faced challenges after the European Union imposed anti-dumping tariffs in August. The tariffs led to a decline in biofuel exports, prompting producers to explore alternative markets.
The state-owned refiners are likely to focus on supplying ships traveling between China and the EU. These ships could qualify for carbon credits by using lower-carbon bunker fuel, according to the traders. Additionally, the initiative aims to boost sales volumes of marine biofuel at China’s Zhoushan port, aligning with global trends at other key bunkering hubs.
Demand for marine biofuel, particularly B24, has been rising in major refueling hubs like Singapore and Rotterdam as shipowners seek to reduce emissions. In Singapore, bunker volumes of marine biofuel have already exceeded 650,000 tons in 2024, surpassing the 520,000 tons recorded in 2023.
The Ministry of Commerce did not respond to requests for comment.
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