Industry AnnouncementsUncategorised

Expert duo to evaluate impact of global sulphur cap

Adrian Tolson of 20|20 Marine Energy and Robin Meech of Marine Energy Consulting Ltd. have announced that they are to conduct collaborative research to evaluate the impact of global suphur cap, due to be implemented in 2020 or 2025.

The companies will present a detailed impact assessment on the regulation impacts of the 0.5% cap of fuel sulphur content and provide insights into compliance solutions to enable industry members to make more informed decisions when developing compliance strategies for now and the future.

The MECL – 20|20 Study, due to be released in early 2017, will cover fuel supply, demand, and availability on a region-by-region basis by types of bunkers including LNG and other alternative fuels, and will look at the new make-up of the fuel supply chain including fuel prices, differentials, compatibility, and quality standards. The study will also release information regarding the availability of abatement technology and financing options, new desulphurising technologies, port infrastructure, storage and investment, and potential enforcement regimes and sanctions.

According to MECL and 20|20 Marine Energy, the study will provide valuable to all stakeholders invested in the maritime industry as well as the marine fuel supply chain. It will also help refiners to increase their understanding on the impact legislation will have on demand, fuel suppliers, port authorities, and operators that require insight as to where to invest in, and ship owners that need a broad knowledge of compliance solutions, their operability and profitability.

The study will be available as a multi-client report, with an option of a seminar to interpret the study’s findings to each client’s specific needs.

Adrian Tolson, Senior Partner, 20|20 Marine Energy commented: “The majority of people currently expect that the global sulphur cap will be implemented in 2020, which leaves just over three years to prepare in an increasingly complex market, fraught with questions and risk. This is coupled with a huge uncertainty in the shipping industry on how the regulation will impact supply, demand and availability, product compatibility and specifications, future pricing, global infrastructure, as well as the choice of compliance solutions available, and how they can be financed.”

Robin Meech, Managing Director of MECL commented: “Will there be enough distillates to meet demand? What will happen to residual fuel? How rapidly will the global LNG infrastructure be developed? How can scrubbers be financed? These are just a few of the questions that need to be answered.”

“This joint MECL – 20|20 study will bring all this information together to comprehensively address and provide insight and greater clarity for stakeholders in the marine fuel supply chain, which will be an essential input to better strategic decision-making” Meech added.

The Marine Environment Protection Committee’s (MEPC’s) 70 session will be held later this month at the IMO headquarters in London. It is at this convening that the final decision for the global sulphur cap implementation date will be made.

Ship Efficiency Review News                                                                                                            

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