Change market dynamics will support Quadrise (file image/pixabay)
Fuel oil technology firm Quadrise has heralded the global fuel oil market's changing market fundamentals as beneficial to its product.
Changing market conditions have come from the International Maritime Organisation's (IMO) decision to drop the global sulfur cap on bunker fuel from its current 3.5% to 0.5%.
"There has been a real change in the marine market, driven by the forthcoming IMO2020 regulations, that has fundamentally improved the economics for MSAR® projects," Quadrise chairman Mike Kirk said.
Rising interest in exhaust gas cleaning technology or scrubbers, which allow ships to continue to use high sulfur fuel oil, and worries over the price and availability of distillates ahead of the IMO rule favour Quadrise's own brand of fuel oil, called MSAR®.
Mike Kirk, Quadrise chairman
There has been a real change in the marine market, driven by the forthcoming IMO2020 regulations
"The marine market is now exhibiting a substantive change with regards to the acceptance of exhaust gas cleaning," the company said.
"Significant momentum [is] building" with "large orders recently announced" applied across all major shipping segments", the company added.
In addition, there is "concern over the potential of distillate fuel availability and compatibility" to disrupt shipping operations.
Rising oil prices and a wider price spread between high and low sulphur fuels is affecting shipping's fuel costs.
"This environment further increases the economic benefits of MSAR® in combination with scrubbers further enabling the company to engage with shippers and engine manufacturers," the company said.
Quadrise's emulsified fuel oil is aimed at the marine and power generation segments.
A reecent agreement between the company and commodity trading house Freepoint.will lead to cooperation between the two frims.