Guangzhou fires up biofuel bunkering for green shipping

In China, Dayoo News reported Guangzhou launched a pilot program for biofuel bunkering in early February, issuing guidelines to expand biodiesel use in international shipping, aiming to cut emissions and reduce costs, according to the city’s commerce bureau. The initiative lays out industry standards, storage infrastructure plans, and regulatory procedures, detailing “the collection and processing of waste oils, biodiesel blending, and bonded biofuel bunkering,” per the official document.

The city took an early lead in 2023, handling China’s first bonded biofuel bunkering operation, but restrictions forced suppliers to export biofuels to Hong Kong for blending before reimporting, adding costs. In April 2024, Guangzhou secured national approval for a biodiesel application pilot, one of 22 projects. Sinopec’s marine fuel subsidiary and Shanghai Maritime University led the drafting of a new biofuel standard, set for release in August.

Bonded biofuel is exempt from import duties and taxes when supplied to international vessels, making it more cost-effective. By allowing direct domestic blending and storage, the program eliminates previous inefficiencies, strengthening China’s position in the global bunkering market.

Looking ahead, officials are “exploring a ‘Guangzhou model’ for biodiesel blending and new supply chains for methanol and green ammonia” to further maritime decarbonization. 

More on the story.