Alkagesta brings EU ETS allowances onto one desk with SAF and biofuels

Alkagesta, the Malta-headquartered commodity trading company, has added European Union Emissions Trading System (EU ETS) allowances to its carbon trading offering, according to a report published by Ship & Bunker. The trade title said the company confirmed the move in an emailed update, positioning allowances trading next to its existing physical fuels business.

The commercial logic, as set out in the company statement quoted by Ship & Bunker, is the scheme's reach beyond the borders of the European Union. Any company dealing with or operating in EU territory falls within scope, which the trader said added to the appeal given it trades biofuels, Brent crude, naphtha, fertilizers and jet fuel from hubs including Malta, Singapore, Turkey and Romania.

For shipping and aviation counterparties, the practical question is how many trading relationships a compliance programme requires. Anthony Guida, Biofuels Trading Desk Lead at Alkagesta, said in the statement that trading EU ETS allowances alongside the company's CORSIA-eligible SAF and biofuels business allows it to support clients across a much wider set of carbon obligations from one desk. He added that as ETS2 brings smaller businesses into scope and ReFuelEU blending requirements ramp up, a single trading partner across allowances, credits and physical fuel supply is becoming increasingly valuable.

The EU ETS has operated since 2005 across several energy-intensive sectors and was extended to shipping in January 2024, phasing carbon costs into voyage economics for vessels calling at EU ports. The claims and figures above are limited to those present in the Ship & Bunker report and the company statement it quotes.