The marine fuel market is undergoing significant change. Following
the implementation and impact of IMO 2020, we’re now seeing the
focus shift to low and zero carbon fuels, and an expansion of other
marine fuel options, predominantly driven by the International
Maritime Organization’s (IMO) impending 2030 and 2050
decarbonization targets. With heavy fuel oil (HFO) the dominant fuel
type in the maritime sector since the 1960s, there is no question
that such incredible change to the market will bring as many
challenges as it does opportunities.

The rapid expansion of available clean fuels has unsurprisingly
caused uncertainty for ship owners and operators looking to invest
and adapt. Especially with the majority of future fuels existing at
a stage of relative infancy and supply chains and infrastructure yet
to be concretely established. In fact, unanswered ‘future fuel’
questions have led to some ship owners stalling newbuild orders amid
uncertainty over fuel strategies.

Driving widespread uptake and encouraging ship owner confidence not
only relies on price competitivity and availability but also
ensuring that the right bunkering and onboard operational
infrastructure is in place. For example, critical fuel supply
systems must be scrutinized to ensure all infrastructural elements,
such as system parts and fuel availability, are factored into the
marine fuel purchasing decision and consequent design. This is vital
to empower ship owners to make an educated decision when
transitioning existing vessels or commissioning newbuilds.

Prevention is better than cure
With nearly 50 years of experience in delivering fuel supply
systems, services and counsel to the maritime industry, we
understand the necessity in having a consultative relationship with
ship owners and operators to instill confidence in the safe,
efficient and cost-effective running of their biggest assets. This
close advisory-based relationship has never been more important when
considering current market dynamics.

Alongside this high level of consultation, we are also developing
products and participating in research projects to support the
introduction of the newer fuels which we perceive to be the most
viable.

Supporting the uptake of LNG
Although liquefied natural gas (LNG) is increasingly viewed within
the shipping industry as a viable bridging marine fuel, significant
infrastructural development needs to continue on a global basis. For
example, all vessels currently require an additional back-up fuel
(low sulfur fuel oil (LSFO)/marine gas oil (MGO)) system to mitigate
the risk of vessel downtime in the event of a lack of LNG
availability in ports, when on a long transit, or if there is a
challenge with an existing LNG system.

This means that within the current market dynamics, LNG cannot run
as the only fuel onboard a vessel. Managing the in-operation
capabilities of running and switching to LNG is therefore critical
in ensuring safety, and concurrently building confidence in the
viability of LNG as a safe, compliant, low-carbon fuel.

As the biggest supplier of auxiliary systems to support the use of
MGO and marine diesel oil (MDO) onboard LNG vessels, we understand
the specific engineering and meticulous approach required to ensure
owners and operators are always able to assume operations regardless
of circumstance or location. By supplying elements such as ‘’fuel
supply units’ for a vessel’s main and auxiliary engines, we are able
to provide crew with the flexibility necessary to ensure operational
continuity throughout transit.

This approach and expert level of counsel, especially when looking
at vessel specific systems, is important to not only support owners
with the transition but increase the reputability of LNG.

Progressing the use of biofuels
In conjunction with LNG, biofuels can also play a significant part
in the marine energy supply chain, both within the transitionary
period as well as a viable long-term future. With many oil refiners
turning to biofuel production, due to reduced fuel demand,
tightening environmental rules and overseas competition, biofuel
production, investment and consequent uptake, is set to rapidly grow.

To support this transition, we are working with industry leaders on
the BioFlex project, which aims to determine the most ecologically
and economically sustainable way to evolve the marine energy supply
chain and replace fossil fuels. The project is due to run for three-
years and is funded by Business Finland, VTT Technical Research
Centre of Finland, and enacted by participating companies that
include Fortum, Neste, Pohjanmaan Hyötyjätekuljetus, Polartek, ST1,
Valmet and Wärtsilä.

Through our work with biofuels, commencing in the early 2000s, we
have found that biofuels can be corrosive and wearing on the metals
typically used in fuel units; the acidity, reactivity, filtration
properties and coagulation of biofuels requiring carefully tailored
specialized solutions, such as acid-proof materials and fuel
specific heating and insulation solutions. We are therefore applying
our expertise to ensure that every material used in a vessel’s fuel
supply unit is examined to ensure a safe environment for the fuel
and wellbeing of those on board. Our findings will also further
inform the design of our new product family, which aims at
supporting the use of biofuels and changing market demand.

Paving the way for future fuels
There is no question as to whether the marine fuel market will be
undergoing momentous change over the next decade, this is certain.
However, uncertainty remains around how we are to best implement and
manage this change.

We believe a holistic and forensic approach is fundamental in
supporting ship owners and operators in all elements of transition
within the supply chain, where providing expert engineering and
ongoing research will be key to fully realizing future fuels in the
marine industry. And in doing this, building confidence and driving
uptake amongst ship owners and operators, so that they can thrive
within this transformative market.