This is a legacy page. Please click here to view the latest version.
Wed 11 Oct 2017, 14:45 GMT

ExxonMobil warns of rise in compatibility and stability issues as new 0.5% fuels emerge


Supplier urges operators to 'avoid the pitfalls' as the market heads towards a 'multi-fuel future'.



A marine industry survey conducted by ExxonMobil finds that the route to compliance with the International Maritime Organization's (IMO) 0.5% global sulphur cap in 2020 is unclear for many vessel operators.

According to ExxonMobil, results of the survey highlight an ongoing sense of confusion and lack of preparedness, with 70 percent of respondents saying that they do not believe the industry is ready for the deadline.

The makeup of the marine fuel mix in 2020 and beyond is a clear area of concern, with wide-ranging views from the industry on how the landscape will evolve.

In the survey, 32 percent predict that a combination of heavy fuel oil, marine gas oil and fuels and blends will be used, while 69 percent believe the cap will lead to the development of new low-sulphur fuels.

"At ExxonMobil we expect that new 0.5% fuel formulations will emerge, based on low sulphur refinery streams, in addition to novel fuel blends," said Iain White, Global Marine Marketing Manager at ExxonMobil. "As a result, it's likely we will see increased compatibility and stability problems, which will make purchasing fuels from a trusted supplier more important than ever."

The cost implications of the cap were also highlighted as a potential challenge; with 53 percent of respondents predicting a rise in fuel spend.

When asked about the uptake of liquefied natural gas (LNG), 31 percent of respondents believe there will be a growth in its adoption as a marine fuel. These findings align with ExxonMobil's 2017 Outlook for Energy: A View to 2040, which predicts that by 2040 global LNG consumption will rise to more than two-and-a-half times the 2015 level.

Of the people surveyed, 45 percent of respondents predict an increased investment in abatement technologies (scrubbers). However, only 11 percent said they were actively looking to install a scrubber before 2020, with 40 percent citing a lack of economic clarity as a reason for forgoing investment.

"The results of this survey show that we are heading to a multi-fuel future and that there is not one obvious fuel solution that will apply to all vessels," said White. "To avoid the pitfalls that may lie ahead, it's vital that operators work closely with trusted fuel suppliers to ensure that they select the best route to compliance for their vessel's needs."


Federal Beaufort vessel. Verra publishes new carbon methodology for alternative fuels in shipping  

VM0053 framework offers an accounting structure for emissions reductions in maritime transport.

NYK LNG-powered vessel connected to shore power. ICO launches Belgium’s first commercial shore power facility for ro-ro vessels at Zeebrugge  

NYK Group subsidiary connects pure car and truck carrier to green shore power at Belgian port.

Ocean Express ship-to-ship (STS) LNG bunkering operation. Dan-Bunkering completes LNG supply in China for Sallaum Lines’ newbuild PCTC  

Bunker firm delivers approximately 1,400 tonnes of LNG to Sallaum Lines’ newbuild car carrier in China.

Seaspan Lions (STS) LNG bunkering operation. Low-GHG methane could keep LNG-capable fleet compliant as regulations tighten, DNV paper argues  

Biomethane and e-methane offer a compliance pathway for LNG-capable ships, says DNV.

HaiSea Kermode and Valencia Knutsen vessel at sea. HaiSea's fleet of electric and dual-fuel tugboats completes 100th LNG carrier escort into Kitimat  

The Haisla Nation and Seaspan joint venture marks one year of LNG carrier escort operations in British Columbia.

Mount Vision naming ceremony. Naming ceremony held for LNG dual-fuel VLCC Mount Vision  

Crude oil tanker named in ceremony held in China.

Green Pearl and Cielo Ace ship-to-ship (STS) bio-LNG bunkering operation. MOL signs bio-LNG supply deals for car carriers across Northern Europe and Mediterranean  

Japanese shipping group expands bio-LNG bunkering to Spanish ports as part of its net-zero strategy.

Dan-Bunkering logo. Dan-Bunkering launches two-year trainee programme for aspiring marine fuel traders  

Bunker firm is recruiting trainees for an August 2026 start across its European offices.

Tower Bridge, London. Chevron hiring London-based marine fuels marketer with renewable fuels remit  

Applications open until 30 June for role involving the marketing of physical bunker fuels with a focus on Europe.

Burando Energies logo. Burando Energies seeks operator to support Rotterdam bunkering activities  

New hire will be responsible for planning, coordinating and monitoring operational activities across the firm's bunkering business.


↑  Back to Top