China plans to issue its first export quotas for marine bunker fuel blended with biodiesel, aiming to bolster domestic biofuel producers affected by European Union anti-dumping tariffs. Industry sources and consultancy JLC report that the government is considering a quota of 500,000 metric tons, likely allocated to state-owned oil companies CNPC, Sinopec, and CNOOC.

The fuel blend, called B24, is composed of 24% biodiesel and 76% low-sulfur fuel oil, distinguishing it from China’s regular low-sulfur fuel oil exports. These quotas are expected to roll out by late 2024 or early 2025.

The initiative addresses challenges faced by China’s biodiesel refiners, whose exports plummeted after the EU imposed steep tariffs in August. Targeting ships on routes between China and the EU, state refiners may leverage carbon credit incentives to promote the adoption of lower-carbon bunker fuels.

The plan also supports China’s Zhoushan port in boosting biofuel sales, aligning with global trends seen at major refueling hubs like Singapore and Rotterdam. Bio-marine fuel demand continues to grow, with Singapore’s 2024 biofuel bunker volumes exceeding 650,000 tons, already surpassing 2023’s total of 520,000 tons.

China’s Ministry of Commerce has yet to comment on the move, but the strategy signals a significant step in fostering a sustainable and competitive marine fuel market while navigating trade challenges.

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