Ep64 From bunker to biofuel: CBL's maritime energy transition, ft Venus Zhao, CBL International

Banle Group’s Venus Zhao discusses how CBL International is revolutionising the maritime industry through sustainable biofuels. Its B24 biofuel blend reduces GHG emissions by up to 25% compared to conventional marine fuels. With operations across 60+ global ports and recent ISCC certifications, CBL is positioned to capitalise on the projected 50% growth in the green marine fuel market despite current supply constraints. Venus outlines how tightening IMO regulations are accelerating industry-wide sustainability adoption and shares CBL's vision to lead the maritime sector's transition towards net-zero emissions through diversification into biofuels, LNG and methanol.
REF: CBL IR page.

ABOUT VENUS: Venus Hui Zhao is the Director of Investor Relations and Public Relations of Banle Group. She is primarily responsible for investor relations, public relations and capital markets of the Group. She has more than 15 years of experience in investor relations, public relations, capital markets and ESG. Prior to joining the Group, she was the General Manager of Hong Kong Office, General Manager of Capital Markets & Corporate Communications at a Hong Kong listed company and assumed different management roles in Hong Kong and US listed companies and Fortune 500 MNCs. Ms Zhao obtained her master degree of Strategic Public Relations in Communications and Journalism School in University of Southern California, and her MBA degree concentrated in Finance in The Hong Kong University of Science & Technology. She is a certified FCMA, CGMA holder from Chartered Institute of Management Accountants (CIMA), associate member of CPA Australia (ASA) , Certified ESG Analyst (CESGA®) from The European Federation of Financial Analysts Societies (EFFAS), Executive Committee member and fellow of Hong Kong Investor Relations Association (HKIRA), and full member of HKIoD (The Hong Kong Institute of Directors).

FEEDBACK: Email Host | HOST, PRODUCTION, ARTWORK: Joseph Jacobelli | MUSIC: Ep0-29 The Open Goldberg Variations, Kimiko Ishizaka Ep30-50 Orchestra Gli Armonici – Tomaso Albinoni, Op.07, Concerto 04 per archi in Sol - III. Allegro. | Ep51 – Brandenburg Concerto No. 4 in G, Movement I (Allegro), BWV 1049 Kevin MacLeod. Licensed under Creative Commons: By Attribution 4.0 License

Transcript

Ep64 From bunker to biofuel: CBL's maritime energy transition, ft Venus Zhao, CBL International

PLEASE NOTE: Automatically generated transcript may contain errors. For accuracy, only rely on the original recording.

Joseph Jacobelli: So, as I mentioned today our guest is Venus Zhao. Hello Venus. How are you?

Venus Zhao: Hello. 

Joseph Jacobelli: Thank you very much for making the time. I think this is a very important topic that we're going to be discussing today. But before we get into the topic, could you maybe introduce a little bit about yourself, you know, how, how you got into this business? Something maybe outside the show notes, because we have already a bio in the show notes. 

Venus Zhao: Sure, sure. Thank you. Thank you for inviting me to this podcast. I'm the director of Investors Relations and Public Relations of Banle Group. I'm primarily responsible for investor relations, public relations, capital markets of the group, and I have more than 15 years in this area, including in ESG. So, prior to joining the group, I was the general manager of Hong Kong office and general manager of Capital Market of and corporate communication at Hong Kong Listed companies and assumed different management roles in Hong Kong and US listed companies and Fortune 500 MNCs.

I've been in the ESG sector for several years. I think it's more than 10 years. So I'm quite interested in this sector. I would like to share with you later. 

Joseph Jacobelli: Sure. But how did you become interested in this Venus? 

Venus Zhao: Yeah, Actually I have been working in different listed companies, and I witnessed you know, the necessity of you know, ESG transition for different companies. And although they have different business sectors and also business nature, but I think it's a trend that companies will continue to transition into the ESG area.

Joseph Jacobelli: Right, even in Asia, right? I mean because Asia is regarded as being a little bit, behind especially Europe. But even in Asia, even in China, it's happening, right? 

Venus Zhao: Yeah. It's growing very fast in the ESG sector. 

Joseph Jacobelli: Great. Well listen I guess a lot of listeners may not necessarily be familiar with CBL International, so could you just give us one or two minutes on CBL and then also clarify a little bit the actual business as well as the business model of CBL, very briefly. 

Venus Zhao: Yeah, sure. So CBL International Limited, the Nasdaq ticker is BANL, is the listed vehicle of Banle Group, a marine fuel logistic company based in Asian Pacific region that was established in 2015. And we are committed to providing customers with one stop solution for vessel refuelling, which is referred to as bunkering facilitator in the bunkering industry, and we facilitate vessel refilling mainly through local physical suppliers in more than 60 major ports. And as of 16 April 2025, we ex expanded into 60 ports worldwide, and the group actively promotes the use of sustainable fields and is awarded with ISCC EU and ISCC plus certifications.

Joseph Jacobelli: Right, and we can find all the different presentations from your previous results and all the, all the details there, right? Yes. That's great. Now I just wanted to maybe start with talking about the bunkering business. What, what exactly is the link between CBLs operations and climate business and finance?

In that shipping is one of the hard to decarbonise or hard to abate sectors. And traditionally, you know, international container liners, bulk carriers and tankers use heavy fuel oil HFO, heavy fuel oil or bunker oil. Could you explain how the shipping industry is, is actually working to reduce its reliance on HFO or bunker oil?

Venus Zhao: Yeah, sure. So CBL is a marine field logistic company that's specialising in the facilitation of vessel refuelling, what we commonly refer to as bunkering in more than 60 ports worldwide. And what, rather than only physical storage or refinery assets, CBL operates an asset lights service oriented model and it in cooperates with a broad network of local suppliers to deliver fuel to vessels efficiently and reliably.

Right. The company offers one stop refilling solution handling procurement, logistic compliance for clients, which also includes some of the world's largest shipping lines. And this approach allows CBL to maintain feasibility, optimise procurement, and uphold high operational standards while navigating the complex regulatory and environmental demand for the maritime industry.

Joseph Jacobelli: Right. Just to clarify something, when you say that you help your clients with compliance what, what does that actually mean? 

Venus Zhao: That means because in the bunkering sector, different ports have different regulations. Right. As well as you know, the jurisdictions. So we have the customer handling this as well.

Joseph Jacobelli: Gotcha. Gotcha. Understood. Could, could you tell us a little bit more about CBLs biofuel operations? Now, CBL made I think significant strides in, in biofuel development, particularly with its B24 biofuel blends. So, number one, can you maybe elaborate on the environmental impact of this biofuel blend compared to conventional marine fuels. And also as an additional question, how does CBL plan to scale its biofuel operations? And what are the next steps in expanding this offering worldwide? 

Venus Zhao: Okay, sure. Thank you for the question. CBL has made major strides in biofuel development, particularly through the in introduction of its B 24 biofuel blend, which consists of 24% used cooking oil, methyl ether. What we call UCOME and 76% very low sulphur fuel oil V-L-S-F-O. And this plan offers a tangible reduction in lifecycle. Greenhouse gas emissions compared to traditional marine fuels, supporting customers in reducing their environmental footprint. In 2024 alone, CBLs biofuel sales surged by over 628% with key deployments in Hong Kong, China, Malaysia, and most recently Singapore.

And this achievement reflects both rising demand for green alternatives and the company's strategic agility in deploying low carbon fuels. And the B 24 biofuel blend used by CBL offers a significant lower environmental impact. Compared to conventional marine fuels. This plant is significantly designed for maritime use and contributes to substantial reductions in GHG emissions over its lifecycle.

The UCOME component is a second-generation biofuel derived from waste cooking oil. Which helps reduce carbon intensity without competing with food resources or contributing to deforestation. And compared to traditional marine fuels, B 24 can cut carbon dioxide emissions by up to 20 to 25%, depending on engine configuration and operational factors.

And additionally, the use of very low sulphur fuel oil ensures compliance with IMO 2020 regulations, which limits sulphur content to 0.5%, significantly reducing the sulphur dioxide emissions and associated health and environmental risks like acid rain. And by offering this blind, CBL helps shipping companies lower their carbon footprint while continuing to meet regulatory requirements and operational demands.

And the company's adoption of ISCC EU and ICC Plus modifications also ensures that biofuel meets strict sustainability and traceability standards and further in in reinforcing the environmental integrity of its fuel solutions. And you also asked about how CBL plan to scale its biofuel operations, and the next steps in expanding its biofuel globally.

So to scale its biofuel offerings, CBL is leveraging in its existing network and securing certifications such as ISCC EU and ICC Plus. Which validates compliance with stringent European sustainability criteria. And the company is focused on expanding coverage across both established and emerging maritime hubs, including recent entries into Mauritius, Panama and India.

And with a green marine fuel market projected to grow an allocator of 50.44%, CBL is well positioned to capitalise on this momentum by scaling biofuel operations and preparing for the next generation fields such as methanol and LNG. 

Joseph Jacobelli: Talking about, you know, the global market demand for sustainable fuels, which I think is a hot topic, how does CBL anticipate the demand for sustainable marine fuels evolving over the coming years, and how is the company positioning itself to capitalise on this particular demand? And, and also got an additional point, which is what about the actual supply? Do we have enough supply? So I'd like to you to talk about the demand side, but at the end to also talk a little bit about the supply. 

Venus Zhao: Okay. Thank you. This is excellent question. And CBL anticipates a robust rise in demand for sustainable marine fuels as shipping companies increasingly align with decarbonisation targets and the regulatory frameworks.

And recognising this CBL has strategically oriented its business to offer cleaner higher margin fuel alternatives, and its growing presence in Asia Pacific and Europe. Alongside its expansion into dual fuel capable vessel segments like bulk carriers and oil tankers allows the company to diversify and deepen market penetration.

Bulk carriers and oil tankers, customer segments now contribute nearly 45% of CBL's revenue up from 32% in the previous year. And you are absolutely right that the demand is very strong and growing on the sustainable fields. However, the supply is far less than the demand, right? So I am also expecting the pickup of supply in the coming few years, so as to meet the growing demand of sustainable fuels.

Joseph Jacobelli: But will there continue to be a gap between very strong demand and supply, at least in the short term, say, over the next three to five years? Or do you think that that gap could be narrowed very, very quickly in the short term? 

Venus Zhao: We believe that there will still be a gap in the near future like two to three years, although the supply is picking up quickly to meet the demand, however because for example, the raw material of UCOME of this biofield. As the used cooking oil is still very few, so it still takes time to pick up to the demand level. 

Joseph Jacobelli: Right. Right, right, right. Now the, the regulatory landscape is evolving very, very quickly. Could you briefly explain such changes as the IMO 2 0 2 0, which I think you mentioned earlier and also upcoming GHG strategies. And what role do you see these regulations playing in shaping the market for sustainable marine fuels? 

Venus Zhao: Okay, thank you for the question. The maritime industry is undergoing transformative change led by policies like IMO 2020, which kept sulphur content in marine field at 0.5%, and the forthcoming IMO GHG strategy and the fuel EU maritime regulations targeting significant emissions reductions by 2030.

And these frameworks are accelerating the shift towards sustainable fuels. CBL is proactively aligning its operations with these mandates by expanding its sustainable fuel supply and investing in cleaner alternatives and maintaining compliance ready logistics infrastructure. Regulations are not merely compliance challenges, but also catalysts for innovation and growth in the green fuel segment.

And as regards the regulation play in shaping the market for sustainable marine fields regulations such as IMO 2020, the IMO GHG strategy and fuel EU maritime regulation, play a critical role in shaping the market for sustainable marine fuels. These frameworks are driving a structural transformation in the shipping industry by imposing stricter limits on sulphur emissions and setting ambitious carbon reduction targets such as cutting GHG emissions from ships by at least 40% by 2030.

This mandate creates both a compliance imperative and a market incentive for shipping companies to adopt low carbon and alternative fields, including biofuels, LNG, and methanol. Right? And for CBL, these evolving regulations serve as powerful catalysts for innovation and growth. They will enforce the company's strategic direction toward greenfield adoption support demand for certified sustainable products like B 24, and open new revenue opportunities in higher margin fuel segments.

CBL's alignment with these regulations demonstrated by its ISCC certifications, biofuel expansion, and investment in operational efficiency position as a key enabler in helping the shipping industry meet compliance regulations while advancing decarbonisation goals. 

Joseph Jacobelli: And just one follow up. The IMO 2020 regulation and the other regulations you mentioned, these are global, right? Not just Yeah. Applicable to a certain number of countries. So that would include Hong Kong mainland China and all of these different countries that you guys operate in, right? 

Venus Zhao: Yes, definitely. 

Joseph Jacobelli: So now the tough question. All the questions have been too easy so far. No, just kidding.

But what, what, what, what about ESG integrations? So how does CBL incorporate ESG criteria in, its, kind of like, day to day operations and strategic planning and, and also. In terms of governance, how does CBL ensure that sustainability is prioritised at the board and executive levels? Because I think many companies, talk about ESG, but may not necessarily have somebody at the board level representing that. So how does it work for CBL. 

Venus Zhao: Yes, this is a very important question for the ESG integration. CBLs ESG strategy is integrated deeply in both the day-to-day operations and long-term planning.

Environmentally, the company focuses on emissions reduction while sustainable fuels. Socially, it emphasises customer trust, employee wellbeing, and community engagement. And in governance it maintains transparency and robust oversight. And yet she priorities are overseen at the board and executive levels with strategic investments in automation IT systems and sustainability initiatives that align with global standards.

And CBL's commitment to yes, she is not just compliance. It's a cornerstone of the company's growth and value creation roadmap. And you ask about how CBL ensure the sustainability is prioritised at the board and executive level. 

Joseph Jacobelli: Right? Right. 

Venus Zhao: In in terms of governance, CBL ensures that sustainability is prioritised at the board and executive levels by embedding ESG principles into its strategic decision making and operational oversight.

The company's leadership views sustainability not merely as a compliance requirement, but as a core pillar of long-term value creation. This commitment is reflected in increased investment in biofuel development, automation, and ESG related initiatives, which were among the key drivers behind the rise in operational expenses in 2024.

And this in this investment are deliberately guided and approved at the highest levels of the organisation. And CBL's board actively monitors regulatory developments such as the IMO GHG Strategy and Fuel EU maritime. Aligning corporate actions to remain compliant while capturing emerging opportunities in the sustainable field space.

This governance approach ensures that sustainability remains a strategic priority embedded in into both the company's current operations and its long-term growth trajectory. 

Joseph Jacobelli: Just as a quick follow up, Venus, if I could. So you've got very, very strong ESG criteria all the way from the ball down to at the working level.

Does that give you a capability, for example, to issue some green products, like green bonds or get green loans or anything like that? Is that, is that something which, which you've seen happening? 

Venus Zhao: That's in their capital financing or fundraising area. And of course all this financing and fundraising, we need authorisation from the board depending on you know, the listing rules.

But indeed there are lots of sustainable products in the banking side and also in the capital markets nowadays. And we are open to discuss with our banks or other you know, capital market partners. But the core of this financing is that, for example, the company is committed and devoted into ESG and is fundamental is on the transition of ESG. So on this basis we are exploring the capital markets or banking side of sustainable financing. 

Joseph Jacobelli: Right. So, so nothing yet, but just watch this space. Yes. Got it. Moving on to the outlook side of things, Venus what is the future vision of CBL's sustainability. I mean I, is there a strategic focus for the next five to 10 years? What are, for example, CBL's, long-term sustainability objectives and how does the company envision, you know, evolving over the next five, 10 years or beyond in terms of clean energy adoption and market leadership?

And also, if I can follow up with another question. That's a lot. I know if we're talking about the outlook, but how will the company continue to adapt to changing global regulations and market conditions? And what role do you see, you know, your company actually playing in the global energy transition?

Very, very big questions. 

Venus Zhao: Okay, sure. I will explain step by step. So looking forward. CBL's vision is to evolve into a global leader in sustainable marine field logistics by 2030, and the company aims to diversify its portfolio, further emphasising biofuels, LNG, and methanol and other sustainable fields as part of its clean energy transition.

Over the next five to 10 years, strategic priorities include expanding into underserved ports, deepening customer relationships, and capitalising on economies of scale to reduce unique costs. With mounting global regulatory and investor pressure to decarbonise, CBL is positioning itself as a key enabler in the maritime sector's transition toward a net zero emissions.

And you also asked about how to adapt to changing global regulations and market conditions and the role CBL play in this energy transition. And CBL is actively positioning itself to adapt to changing global regulations and evolving marketing conditions by aligning its operation with the tightening frameworks of the IMO GHG strategy and fuel EU maritime regulations.

The company's response is multifaceted. Combining strategic investment, operational flexibility, and sustainable innovation to stay ahead of regulatory shift. CBL is scaling up its biofuel operations, particularly is certified B 24, blend and explore next generation fields like LNG, methanol. And the company has also expanded into new geographies, including Mauritius, Panama and India, to strengthen its global presence and diversify its customer base, ensuring resilience in the face of shifting trade routes and environmental mandates.

And in the broader context of the global energy transition, CBL aims to serve as a key enabler of decarbonisation in the shipping industry. Its intensive supply network, robust ESG integration, and focus on higher margin sustainable fuels. Position the company to help maritime operators meet their climate targets while maintaining operational efficiency by providing scalable compliance and environmental responsible bunkering solutions, CBL is contributing directly to the industry's shift towards a low carbon future. 

Joseph Jacobelli: I just had a thought as well, which has got to do with probably the next 20, 30 years I noticed that some shipping companies at looking at also diversifying. Some were talking about electric ships, which I think is not viable because of the size of the ships or using other, other fuels, like LNG for example if I remember correctly, apologies, I'm not an expert. But do you see that as a very long-term trend? Because I believe there's been a lot of issues or challenges in switching away from traditional fuels. 

Venus Zhao: Okay. I think it is a long-term trend, but it's happening right now. And then we see that there more, more increased order book of different shipping companies on sustainable fields, including biofuel, LNG and methanol. And at the moment electricity powered shipping is not feasible, as you mentioned, that you know, the power is not strong enough. But the methanol and LNG those that are already using by the shipping companies and. We are also seeing the fast growth of this sustainable fuel. As you'll see that there is a consultancy company forecasting about 50.4% CAGR growth each year in the coming 20 years for those green marine fuel sector. 

Joseph Jacobelli: Right. Right. Thank you for clarifying that. So just to wrap it up do you have any final remarks or some key takeaways? Venus. 

Venus Zhao: Sure. In summary, CBL International stands at the forefront of a pivotal shift in marine field logistics.

Through aggressive expansion, strategic biofuel adoption, and a firm commitment to ESG principles, the company is not only adapting to global changes but also helping shape them. With a network worth spanning 60 plus ports, a surge in biofuel demand, and a forward-thinking governance structure. CBL is poised to lead the next wave of decarbonisation in the global shipping and stakeholders can expect continued innovation, disciplined growth, and a strong alignment with global push for sustainable maritime practices.

Thank you.

Joseph Jacobelli: That's great. That's great. Thanks. Yeah, and, and I think it's a very, very important subject that doesn't necessarily hit the headlines very often. I mean, you know, fuel for ships is not exactly so you know, I guess in a few maybe in a few months or, you know, a year or a few episodes from now anyway, we can have a catch up and, you know, see how things are evolving.

Venus Zhao: Sure, sure. Definitely. I. 

Joseph Jacobelli: Well, thank you so much, Venus, for your time today. I really appreciate it. 

Venus Zhao: Thank you. Thank you for inviting me.