The European Union (EU) has given the green light for a US$138.86 (€118) million investment from the Innovation Fund to be allocated across 32 small projects, including a bio-LNG plant to produce marine fuel and the retrofit of a ferry to operate on battery power.
The projects are located in 14 EU Member States, as well as Iceland and Norway. The grants are intended to support projects aiming to bring low carbon technologies to the market in energy-intensive industries, hydrogen, energy storage and renewable energy.
In addition to this funding, 15 of the projects will receive project development assistance worth up to US$5.18 (€4.4) million.
In the meantime, on week 31, Marine Bunker Exchange (MABUX) World Bunker Index did not show any significant changes. The 380 HSFO index rose to US$457.36/MT, the VLSFO index fell to US$558.81/MT, while the MGO index ascended to US$651.36/MT.
European gas markets continue being volatile with bullish sentiment prevailing, according to MABUX report, while natural gas supplies are still weaker due to summer maintenances.
MABUX Amsterdam-Rotterdam-Antwerp (ARA) LNG Bunker Index, calculated as the average price of LNG as a marine fuel in the ARA region, rose from 28 July to 4 August, to US$919.66/MT.
At the same time, the average value of the LNG Bunker Index increased by US$38.50 compared to the previous week. The average price for MGO LS in Rotterdam during the same period decreased by US$12/MT, while the average price difference between bunker LNG and MGO LS in Rotterdam increased at US$220.22.
“The growth of the LNG ARA Index reflects the current situation in the global LNG market, where a firm upward trend continues,” commented MABUX.
The average weekly Global Scrubber Spread (SS) – the difference in price between 380 HSFO and VLSFO –decreased on 4 August to US$103.18.
Meanwhile, the average value of SS Spread in Rotterdam reached US$110, while in Singapore, the average SS Spread declined to US$122.83.
In addition, the correlation of MABUX MBP Index (Market Bunker Prices) vs MABUX DBP Index (MABUX Digital Benchmark) in the four global largest hubs during the past week showed that 380 HSFO fuel remained undervalued in all four selected ports.
In particular, ranging from minus US$20 in Houston and minus US$20 in Fujairah to minus US$33 in Rotterdam and minus US$43 in Singapore, the MABUX MBP/DBP Index ratio for 380 HSFO fuel has not changed significantly.
VLSFO fuel grade, according to the MABUX DBP Index, was also underestimated in all four selected ports: in Houston, the underpricing was recorded as minus US$14, in Rotterdam – minus US$26, in Fujairah – minus US$37 and in Singapore – minus US$3. In general, the MBP/DBP Index ratio for VLSFO fuel has remained steady.
As for MGO LS, MABUX DBP Index has registered an undercharge of this grade at all selected ports ranging from minus US$28 in Houston to minus US$55 in Rotterdam, minus US$75 in Singapore and minus US$64 in Fujairah.
The underestimation margins, according to MBP/DBP Index, increased last week in all ports. The most significant growth was registered in Houston (plus US$12) and Fujairah (plus US$17).
