Switzerland-based energy and commodities company Vitol has completed its inaugural biofuel deliveries in Fujairah, the United Arab Emirates (UAE).
Through its wholly-owned bunker arm, Vitol Bunkers, two vessels received B24 very low sulfur fuel oil (VLSFO) on December 8 and 14.
The fuel was sourced from Vitol’s Fujairah-based refinery FRL and blended with regionally-sourced biofuel at VTTI storage facilities.
The deliveries coincided with the United Nations Climate Change Conference COP28. During the conference in Dubai, the maritime sector agreed that there is a pressing need to decarbonize international shipping.
Certified biofuels are expected to play a key role in helping the hard-to-abate maritime sector to decarbonize and reduce greenhouse gas (GHG) emissions on a well-to-wake basis. They can actively reduce a vessel’s Carbon Intensity Indicator (CII), and count as a zero CO2 emissions factor once shipping joins the EU’s Emissions Trading System (ETS) in 2024.
Vitol consolidates shipping activities
In a separate announcement, Vitol informed it will consolidate all its shipping activities into a Singaporean company, Vitol International Shipping from January 1, 2024.
Vitol International Shipping will be the new name for Mansel, Vitol’s existing Singapore-based shipping company.
LSC, Vitol’s technical ship management company, will continue to operate from Riga, Latvia.
Recently, Vitol revealed plans to expand the supply of biofuels in Asia with the delivery of specialized bunker barges in Singapore. The company is sending its specialized bunker barges to Singapore, and through its wholly-owned subsidiaries V-Bunkers and Vitol Bunkers will be able to offer a range of biofuel blends, from B24, and B30 up to B100.
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Vitol targets biofuel expansion in Singapore in 2024 with specialized bunker barges
Currently, all vessels delivering bunker fuel in Singapore are oil tankers, which are permitted to only supply fuel blended with biofuel up to 25% concentration. For greater biofuel concentrations, the IMO regulations stipulate the introduction of an ‘IMO Type 2 chemical tanker’.