China plans to issue its first 500,000 metric tons of export quotas for marine biofuel blends by early 2025, targeting European trade routes in an effort to support domestic biodiesel producers hit by European Union anti-dumping tariffs, according to industry sources and consulting firm JLC, according to a report by Texas-based Global Trade.
State-owned oil companies PetroChina, Sinopec and CNOOC are expected to receive quotas for the B24 blend, which contains 24 percent biodiesel and 76 percent low-sulfur fuel oil. The move is aimed at countering a slump in exports and promoting the use of low-carbon fuels for ships between China and the European Union. Zhoushan Port, a key player in China’s bunker trade, is expected to benefit from increased sales of biofuels, mirroring the trend in global hubs such as Singapore and Rotterdam.
Singapore’s 2024 biofuel production already exceeds 650,000 tons, underscoring the growing demand. While China’s Ministry of Commerce has yet to comment on the quotas, the move represents an effort to stabilize its biodiesel industry and increase competitiveness in the international marine fuel market.