Rotterdam biodiesel drops below marine diesel as shipping demand rises
Marine biodiesel in Rotterdam reached a record low of $985 per tonne in mid-September, compared with $1,528.50 for marine diesel. Demand is rising, but limited feedstocks, competing uses and questions over waste-oil certification could restrict further uptake.
Record discount changes the fuel calculation
Marine biodiesel in Rotterdam fell to a record low of $985 per tonne in mid-September, according to pricing service Argus, while marine diesel stood at $1,528.50. Biodiesel subsequently recovered to $1,240, but remained competitive after accounting for its lower energy density and the carbon costs applied to conventional shipping fuel.
Using heating values cited by Transport & Environment, biodiesel at the record low cost about $26.50 per gigajoule, against roughly $35.50 for marine diesel. At $1,240, the biodiesel advantage narrows to slightly more than $2 per gigajoule before carbon costs. One tonne of biodiesel contains around 14% less energy than one tonne of diesel, and the Financial Times reported that ships consume 7% to 10% more fuel per voyage when using it.
EU rules and war premium drive demand
The Netherlands has applied the EU Renewable Energy Directive, RED III, to marine fuels since January. Fuel suppliers must reduce annual emissions, prompting companies at risk of missing their 2026 targets to cut biodiesel prices and stimulate sales, the Financial Times reported. EU emissions trading and FuelEU Maritime further improve the relative economics of biofuels. Shipowners must now surrender allowances for all covered emissions, while FuelEU Maritime requires a 2% reduction in fuel greenhouse-gas intensity, rising to 6% in 2030 and 14.5% in 2035.
The comparison has also been transformed by conventional fuel prices. Marine diesel cost $714.50 per tonne before the Iran war began in February and has since more than doubled. In early March, neat advanced biodiesel, or B100, cost $1,075, compared with $927 for marine diesel, making B100 cheaper only after carbon costs. Without the war premium, biodiesel would again be substantially more expensive than marine diesel.
Rotterdam overtakes Singapore in biofuel volumes
Rotterdam sold 239,875 tonnes of biofuel blends in the second quarter of 2026, more than twice the first-quarter volume and the highest level since early 2024, according to Ship & Bunker’s calculation from port data. The increase put the world’s second-largest bunkering port ahead of Singapore for the first time since mid-2024. Biodiesel can be used neat or blended in most modern marine engines with little or no modification, giving it an immediate advantage over methanol and ammonia.
Supply, however, remains limited. DNV estimates that biofuels provide only 0.6% of global marine fuel. Argus expects Rotterdam alone to consume about 250,000 tonnes of unblended advanced biodiesel in 2026, more than 40% of the global marine market. Worldwide production is just under four million tonnes and also supplies road transport and industry.
Feedstock competition sets a ceiling
Much of Rotterdam’s biodiesel comes from used cooking oil and palm oil mill effluent, or POME, sourced in Southeast Asia. Transport & Environment said a 2025 analysis found that twice as much POME was reported as biofuel feedstock in the EU as could be collected worldwide, raising suspicions that fresh palm oil was being declared as waste.
Shipping also competes with road transport and aviation for used cooking oil, animal fats and palm residues. Alternatives remain small: Rotterdam handled 2,845 tonnes of biomethanol in the second quarter, against almost 240,000 tonnes of biofuel blends, while DNV estimated biomethanol cost around three times as much as marine diesel in 2025. Biodiesel can therefore deliver near-term compliance for ocean shipping, but its expansion will depend on feedstock availability, certification credibility and the persistence of today’s fuel-price gap.
