Dan-Bunkering completes Union Bulk’s 1st biofuel operation in Singapore

Photo: Dan-Bunkering

Leading global bunker supplier Dan-Bunkering announced March 18 that it has successfully completed a bunkering of biofuel for its client Union Bulk, a Danish dry-cargo owner and operator.

This marks Union Bulk’s first biofuel bunkering carried out March 9 for its vessel Blue Union Alpha.

In continuing the coverage of international shipping routes with in-demand fuel types, the operation was coordinated by Dan-Bunkering.

The company was able to assist on short notice with the necessary expertise and biofuel-sourcing capabilities for an on-time delivery at the Port of Singapore ahead of Blue Union Alpha’s voyage to Europe.

“Dan-Bunkering’s strength in a case like this comes from having spent a great amount time and resources in putting the necessary framework and biofuel-supply team together to support a first-time buyer like Union Bulk,” said Michel Dominique Thomsen, the commercial director at Dan-Bunkering. “When we were called upon by Union Bulk for this task, we could jump into action immediately, schedule the delivery and complete the ordering process with just a day’s notice.”

When selecting the most suitable biofuel option, price was just one of many factors considered.

Dan-Bunkering provided expert guidance on choosing the most appropriate grade of biofuel thereby also offering solutions to mitigate the risk of losing insurance by maintaining compliance with specific original-equipment manufacturer requirements.

Loading the 300 metric tons of B24 very-low sulfur fuel oil (VLSFO) via a ship-to-ship operation will allow the Blue Union Alpha to complete its voyage to Europe while complying with the EU’s regulatory frameworks of FuelEU maritime and the Emissions Trading System.

For vessels accustomed to faring Asian waters, making the journey to Europe adds increased regulations on emissions and new standards to adhere to.

Navigating these regulations can be challenging and often requires partnering with counterparties who have that expert skill set.

“Before setting out on the voyage from Singapore to EU, adding B24 VLSFO was vital for us to meet emissions requirements imposed by the EU,” said Thomas Nielsen, Union Bulk’s operations director and partner. “And having both fuel quality, paperwork and delivery in place and in time for an operation with short notice, we called Dan-Bunkering. This being our first biofuel bunkering operation, we went above and beyond with 300 metric tons, easily sufficing the journey’s needs. But this was to get experience and prove the feasibility of the operation, and it was a good experience for us both commercially and operationally. Bunkering biofuel, as is turns out, isn’t much different than regular marine fuels—but being new territory for us, we are pleased to have worked with Dan-Bunkering on this operation and have them warrant that it was done in the correct manner.”

One of easiest ways to go about meeting the FuelEU requirements is to use a drop-in fuel like biofuel to lower the emissions.

For a ship like the Union Blue Alpha, adding 300 metric tons of B24 VLSFO may result in CO2 emissions savings of about 79 tons of CO2 and a reduction in greenhouse-gas intensity compared to conventional fuels.

Dan-Bunkering is certified by the International Sustainability and Carbon Certification System GmbH, meeting all compliance requirements for the industry.

The company said its finances allow extending necessary credit to any applicable operation.