KPI OceanConnect expands biofuel bunkering to meet FuelEU demand

In Singapore, Reuters reports KPI OceanConnect, a global marine fuel trading company, announced plans to expand its biofuel bunkering operations from 70 to 120 ports worldwide by January 2025, driven by increasing demand as FuelEU Maritime regulations take effect.

Despite the environmental benefits, Jesper Sorensen, KPI OceanConnect’s global head of alternative fuels and carbon markets noted that adoption remains slow due to the cost premium of biofuels. “It is cheaper to buy emissions allowances over the European Emissions Trading System than it is to buy biofuels,” he said, adding that the ETS does not sufficiently encourage the use of alternative fuels. This price disparity continues to be a significant hurdle for the widespread uptake of biofuels in the industry, according to the report.

Sorensen revealed that KPI OceanConnect has already delivered over 300 biofuel stems to more than 80 clients. He emphasized that Europe remains the most advanced region for biofuel availability, but “Asia is catching up” as regulations push demand higher. Sorensen described the FuelEU regulations as a “game-changer” for the maritime industry, with biofuels like B24 blends cutting emissions by up to 20%, while pure biofuels can achieve reductions of 85%-95%.

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