The global0.50% sulfur cap comes into force in 2020. File Image / Pixabay
Houston-based Vertex Energy, Inc. [NASDAQ:VTNR] (Vertex Energy) is the latest player to announce it will produce an IMO2020 compliant bunker fuel.
Commercial trials to produce a product to meet the upcoming 0.50% global sulfur cap, which comes into force from January 1, 2020, could start as early as this quarter, CEO and President Benjamin Cowart said earlier today during the company's latest earnings call.
Back in 2016 Vertex Energy said it was looking to "aggressively" enter the marine fuel markets.
Benjamin Cowart, CEO and President, Vertex Energy
We plan to fully leverage what has become an improved market through multiple opportunities
Today, Cowart said the company achieved what it set out to do and last year increased its percentage of finished 0.10% maximum sulfur products being delivered into the Marine diesel market that comply with Emissions Control Area (ECA) rules.
"In 2017, our objectives were to penetrate the Marine Fuel markets, build a high purity base oil network throughout our Group III base oil import business, grow our collection volumes, and improve our production capacity. We achieved these objectives and are committed to driving further improvements and profitability through our business operations in 2018," said Cowart.
"We plan to fully leverage what has become an improved market through multiple opportunities, including the high-purity base oil markets and processing finished products that will meet the new IMO's 2020 marine bunker fuel regulations."