Residual Fuels Are "Not Dead Yet" Despite Stricter Environmental Regulations

Intertek Shipcare’s technical manager Michael Green said that hybrid fuels using residual fuel would keep demand for the latter alive.

According to Intertek Shipcare’s technical manager Michael Green, residual fuels are “not dead yet” despite stricter environmental regulations in the form of Emission Control Areas (ECA), the International Bunker Industry Association (IBIA) said in a press release.

Noting the impact of this year's introduction of a 0.10 percent sulfur cap for marine fuel within ECAs - essentially ruling out the use of HFO without the use of a scrubber - Green said the proportion of distillate samples sent to the marine services company had risen sharply following the implementation of the stricter ECA rules.

And while the upcoming introduction of a global 0.50 percent global sulfur cap would also mean reduced residual fuel use, Green said it would not spell the end for HFO thanks to an anticipated widespread use of scrubbers.

"Is this the end of the road for residual fuel? No," said Green, who was speaking at the IBIA Convention in Mexico.

The new rules have also sparked the introduction of so called hybrid fuels, which according to Green, were generally of good quality.

Meanwhile, the elimination of 1.0 percent sulfur fuel that met ECA rules prior to January 1, 2015 has also led to a general rise in fuel quality, according to Green, as the process to make residual fuels 1.0 percent sulfur-compliant often inadvertently led to higher levels of cat fines within fuels, increased stability related issues, and chemical contamination.

Last month, Ship & Bunker also reported that the IBIA had made scathing remarks about the International Maritime Organization (IMO) for their purported role in under-regulating bunker quality.