World News
IBIA CONVENTION: New ECA May Present 'Huge Opportunity' for Alt Fuels in Med
The establishment of a 0.1% sulfur emission control area in the Mediterranean next year may present a 'huge opportunity' for alternative fuels in the region, according to consultancy 2050 Marine Energy.
From next year ships in the Mediterranean will either need to use maximum 0.1% sulfur fuels -- down from 0.50% at the moment -- or use a scrubber, with the grace period for compliance coming to an end on May 1.
The combination of that change with European regulations on GHG emissions from shipping could deliver a significant stimulus to alternative fuel supply in the region, Adrian Tolson, owner of 2050 Marine Energy, said at the IBIA Annual Convention 2024 in Athens on Wednesday.
"I think there's a huge opportunity for alternative fuel supply to develop, for bio and LNG to become both ECA and greenhouse gas solutions," Tolson said.
"But they're both challenged by a lack of infrastructure; there's really quite a lack of storage available, particularly in the Western Med."
Tolson estimates Mediterranean biofuel blend and LNG bunker demand at 140,000 mt/year and 240,000 mt/year respectively in 2024, rising to 410,000 mt/year and 550,000 mt/year respectively in 2026.
Key Bunker Prices More
| VLSFO | MGO | |||
|---|---|---|---|---|
| $/mt | +/- | $/mt | +/- | |
| Singapore | 582.50 | 6.50 | 681.00 | 4.50 |
| Rotterdam | 519.00 | 4.50 | 669.00 | 7.50 |
| Houston | 550.00 | 2.50 | 658.50 | 12.50 |
| Fujairah | 573.00 | 9.50 | 753.50 | 4.50 |
| Global 20 Ports Average | 593.50 | 6.00 | 750.50 | 5.50 |
| Global 4 Ports Average | 556.00 | 6.00 | 690.50 | 7.00 |
| Global Average Bunker Price | 639.50 | 4.50 | 809.50 | 3.00 |
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