China is set to implement its first export quotas for marine bunker fuel blended with biodiesel, a move aimed at supporting domestic biofuel producers impacted by recent European Union anti-dumping tariffs. According to industry sources and consultancy JLC, the proposed quota is expected to be around 500,000 metric tons, with allocations likely going to state-owned oil companies such as CNPC, Sinopec, and CNOOC.
The fuel blend, known as B24, consists of 24% biodiesel and 76% low-sulfur fuel oil, distinguishing it from the country’s standard low-sulfur fuel oil exports. The rollout of these quotas is anticipated by late 2024 or early 2025.
This initiative seeks to address the challenges faced by China’s biodiesel refiners, whose export numbers have significantly declined following the imposition of steep tariffs by the EU in August. As part of the strategy, state refiners are exploring the use of carbon credit incentives to encourage the adoption of lower-carbon bunker fuels, particularly for shipping routes between China and the EU.
Additionally, the plan aims to enhance biofuel sales at China’s Zhoushan port and aligns with global trends observed in major refueling hubs such as Singapore and Rotterdam. Demand for bio-marine fuel is on the rise, with Singapore’s projected biofuel bunker volumes for 2024 expected to exceed 650,000 tons, surpassing its total of 520,000 tons in 2023.
