Biofuel adoption stalls in the Americas despite supplier efforts

In Singapore, ENGINE Online reports biofuel adoption across the Americas is languishing despite offerings from major suppliers and localized initiatives. In Houston, biofuel like B30-VLSFO costs $792 per metric ton, a stark contrast to the $696 in Rotterdam and $660 in Singapore, where proximity to cheaper Chinese used cooking oil reduces costs. Shell and Stone Oil are actively trying to promote biofuels, with Shell focusing on long-term contracts to foster a stable market.

However, inadequate infrastructure limits distribution to truck deliveries or third-party services rather than dedicated facilities, resulting in minimal demand. In Canada, although Canada Steam Ship Lines uses B100 and is developing a terminal at Port Colborne with Canada Clean Fuels, broader market penetration is limited.

In South America, the situation mirrors this trend. Suppliers like Monjasa in Colombia and Agunsa in Argentina offer bio-blends, but without recorded bookings, reflecting significant price sensitivity. In Argentina, B30-VLSFO is priced at $1,190 per metric ton, nearly double the $550 for standard VLSFO, deterring potential adopters.

These barriers—high costs, sparse infrastructure, and regulatory uncertainties—underscore the difficulties biofuels face in becoming a viable mainstream energy option in the region, despite growing environmental consciousness and supplier initiatives.

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