Marine biodiesel prices in Rotterdam have fallen to a record low, making the fuel cheaper than conventional shipping fuels after accounting for carbon compliance costs, Impakter reported.
According to pricing agency Argus, marine biodiesel prices dropped to $985 per tonne on Monday before recovering to $1,240 per tonne. The decline came as producers reduced prices to boost sales and meet European Union emissions targets.
The price of marine biodiesel is now below that of several conventional shipping fuels when carbon compliance costs are included. Marine gasoil, meanwhile, has surged to $1,528.50 per tonne amid supply disruptions linked to the Iran conflict, compared with $714.50 per tonne before the conflict began.
Analysts said the sharp price reversal could accelerate the shipping industry’s adoption of biofuels. According to DNV’s Jason Stefanatos, biofuels can serve as a “drop-in solution” for most modern marine engines and require limited retrofitting.
Sales of biodiesel in Rotterdam more than doubled quarter-on-quarter, supported by higher diesel prices and new Dutch regulations implementing the EU’s Renewable Energy Directive III.
Despite the recent increase in demand, biofuels still account for only around 0.6% of global shipping fuel consumption. Their wider adoption remains constrained by competition for feedstocks from other sectors and restrictions on sourcing within the EU.
