China plans to issue its first export quotas for marine bunker fuel blended with biodiesel, aiming to support domestic biofuel producers affected by EU anti-dumping duties. Industry sources and consultancy JLC reported that the government was considering a quota of 500,000 tons, which could be allocated to state oil companies PetroChina, Sinopec and CNOOC.
The mixed fuel, called B24, is composed of 24% biodiesel and 76% low-sulfur fuel oil, which is different from the low-sulfur fuel oil conventionally exported from China. The quotas are expected to be rolled out in late 2024 or early 2025.
The move addresses challenges faced by Chinese biodiesel refiners, whose exports fell sharply after the EU imposed steep tariffs in August. State-owned refineries could use carbon credit incentives to promote the adoption of low-carbon marine fuels for ships on routes between China and the EU.
The program also supports the Chinese port of Zhoushan in promoting biofuel sales, in line with global trends in major bunkering hubs such as Singapore and Rotterdam. The demand for marine biofuels continues to grow, and Singapore’s biofuel volume will exceed 650,000 tons in 2024, exceeding the total volume of 520,000 tons in 2023.
China’s Ministry of Commerce has not yet commented on the move, but the strategy marks an important step in cultivating a sustainable and competitive marine fuel market while addressing trade challenges.
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