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20|20 MARINE ENERGY: Time for industry change

Physical fuel suppliers need to fundamentally transform the traditional models of supply in order to survive.

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Physical fuel suppliers need to fundamentally transform the traditional models of supply in order to survive, said Adrian Tolson, Senior Partner from 20|20 Marine Energy, a leading maritime consultancy. 
 
Speaking ahead of SIBCON 2018, the industry’s largest bunkering conference, Tolson believes that as margins continue to dwindle suppliers need to look ahead to not only a post 2020 world, but also beyond as the industry’s fuel requirements to deliver sulphur compliance converges with regulatory pressure and targets to reduce GHG emissions from shipping.  And in conjunction with this, they must utilize developments in technology, and access to data and intelligence to create sophisticated, and relevant models for the future marine energy supply chain.
 
“Physical suppliers need to break out from the traditional model of solely delivering huge quantities of commodity in traditional large bunkering hubs with small margins as a means of hopefully staying in business and making a living; it is a negative downward spiral that will lead to insolvency.  Even the current trend of looking for niche higher margin markets will be challenged and are not solutions to even medium-term sustainability.  And any windfall profits for physical suppliers post 2020 will be short-lived, with the main beneficiaries being the large commodity players, which will lead to a quick return to declining margins.  They must understand that the marine energy supply chain is fundamentally transforming, and they need to not just stay ahead of the curve, but show leadership by driving it, as there are opportunities for those that can lift their heads and be visionary,” said Tolson.
 
Tolson stated that in a pre-2020 world bunkering companies firstly need to position themselves as more than just basic suppliers, looking at every opportunity within the physical supply chain to add value, beyond the typical storage, distribution and supply process. 
 
“Right now, some ship owners and operators still require guidance on what compliance solution they are going to adopt, which we know will be mainly distillates and blended VLSFO’s, interspersed with scrubbers.  However, what they really need is help in structuring their purchasing habits, utilizing technology, data and intelligence so that their procurement and buying process is fully optimized.  This can yield 1% to 2% in fuel cost savings, which is significant when we consider the dramatic increase in prices post 2020.  Suppliers, as well as bunker traders need to be able to provide this level of consultancy, which takes their value-add way beyond price per ton, and also creates the foundation from which they can evolve their positioning and offering in a post 2020 world.”
 
Specifically, Tolson believes suppliers need to look to the future, five to ten years beyond 2020, where the regulatory challenges in meeting low sulphur targets converges with the requirement for the industry to reduce its GHG emissions and appropriately contribute to the 1.5% to 2-degree global warming targets, defined in the Paris Agreement.
 
“The reality is that to meet 50% GHG reduction targets by 2050, the industry will have to move to clean energy sources, from hydrogen-based fuels, biofuels, wind, to battery power and so forth; distillates and hybrid products just won’t exist.  There will clearly be an evolution to this over time, but physical suppliers need to consider what their role and position in this new world looks like now, and begin the process of building a business model and brand that can deliver it and is fit for purpose.”
 
Tolson concluded:
 
“There is a real opportunity for the creation of a future fuels company that combines a strategic consultancy offering with a physical supply of products to meet 2020 sulphur compliance needs, underpinned by investment in new sources of clean energy that delivers against the shipping industry’s future sustainability challenges.  And on top of this they need to understand and identify technology and other advanced solutions, such as blockchain, that we’re already seeing come into the market, which can be integrated into the energy supply and procurement process to improve efficiencies and ensure transparency and ethical practices.  Ultimately, fuel suppliers have an important role to play, but they need to be bold and adapt now, and implement the obvious changes to business models that are required.”

Published: 2 October, 2018
 

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Ammonia

AM Green plans to build green ammonia plant at Indian port

Initiative also includes development of green ammonia handling, storage and bunkering infrastructure, pilot bunkering operations, safety procedures and training programmes, says VOC Port Authority.

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VO Chidambaranar (VOC) Port Authority on Friday (29 May) said it has signed a Memorandum of Understanding (MoU) with India’s ammonia producer AM Green Ammonia to collaborate in the development of a green ammonia production plant.

The plant will have a capacity of one million tonnes per annum (MTPA) at Tuticorin.

The initiative also includes development of green ammonia handling, storage and bunkering infrastructure, pilot bunkering operations, safety procedures and training programmes. 

The project is expected to support the development of green fuel corridors connecting VOC Port with major ports in Europe and Asia, thereby strengthening India’s position in the global green fuels value chain.

VOC Port also signed a Memorandum of Understanding (MoU) with Bureau Veritas (India) Pvt. Ltd., to collaborate on Green Port certification, emissions accounting, ESG reporting, safety validation, development of green bunkering practices, and establishment of a Centre of Excellence for green fuels and sustainability.

The port also plans for an upcoming 750 m³ green methanol bunkering facility.

 

Photo credit: Naveed Ahmed on Unsplash
Published: 3 June, 2026

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Port & Regulatory

Study: Major drop in ship sulphur emissions confirmed following IMO regulations

National Centre for Atmospheric Science study found that the average sulphur content in ship fuel dropped nearly tenfold in open ocean areas following IMO’s 2020 regulation.

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Recent global regulations have significantly reduced sulphur emissions from ships, helping to improve air quality in coastal regions – confirmed by a recent international study led by researchers at the National Centre for Atmospheric Science. 

The research, published in Environmental Science: Atmospheres, used aircraft and ground-based instruments to measure sulphur dioxide and nitrogen oxides emitted by ships in the North-East Atlantic and European coastal waters between 2019 and 2023.

The team found that the average sulphur content in ship fuel dropped nearly tenfold in open ocean areas following the International Maritime Organization’s 2020 regulation, which capped sulphur content in marine fuel at 0.5%. 

Before the change, many ships exceeded the previous 3.5% limit. After 2020, only a small number of ships were found to breach the new standard.

In European sulphur Emission Control Areas (SECAs), such as the English Channel and the Port of Tyne, sulphur levels were even lower – well below the stricter 0.1% limit. Interestingly, ports outside these zones, like Valencia in Spain, also showed low sulphur levels, likely due to EU rules requiring cleaner fuel when ships are docked for extended periods.

This is the first study to use aircraft-based measurements and predictions from the Ship Traffic Emission Assessment Model (STEAM3) to assess ship emissions outside of sulphur control zones since the 2020 regulation came into effect. The findings support the widely held view that ships now emit around seven times less sulphur than before the rule change – an important step toward cleaner air and healthier coastal environments.

Note: The research, titled ‘SO2 and NOx emissions from ships in North-East Atlantic waters: in situ measurements and comparison with an emission model’ can be found here. 

 

Photo credit: shraga kopstein on Unsplash
Published: 8 December, 2025

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Interview

IBIA Annual Convention 2025: ‘Exciting times’ for post IMO 2020 bunker suppliers, states Equatorial

Choong Sheen Mao, Chief Operating Officer, Equatorial, describes to Manifold Times the pre/post IMO 2020 challenges and evolution of bunker suppliers.

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The International Bunkering Industry Association (IBIA) will be hosting its flagship Annual Convention in Hong Kong at the Hong Kong Convention Exhibition & Convention Centre between 18 to 20 November 2025, as part of Hong Kong Maritime Week.

Choong Sheen Mao, Chief Operating Officer, Equatorial Marine Fuel Management Services (Equatorial), speaks to bunkering publication Manifold Times about the challenges of a post IMO 2020 bunker supplier.

MT: How does Equatorial continue to offer customer assurance and maintenance of marine fuel quality to ISO8217 standards despite increasing complexity of bunker fuel blends?

We maintain our focus to provide compliant, quality and competitively priced products to our customers. There is no shortcut. We source our products from a wide range of cargo producers and suppliers. We continue to be strict and vigilant with our testing programme for our products before delivering them to our customers. Equatorial has deepened our engagement with the wider industry to have a better and up-to-date understanding of the existing and new marine fuels.

MT: Can you share the evolution of commercial marine fuel procurement, blending and trading strategies on the back of increasing fuel types (pre/post IMO 2020)?

Pre IMO 2020, the main types of marine fuel procured and consumed by vessels were high-sulphur fuel oil, marine diesel oil and marine gas oil. Trading strategies were therefore closely linked to that within the oil industry.

However, many of the new fuel types are from other industries. For example, biofuels, methanol and ammonia are mainly products from the chemical and agriculture industries. There are marked differences between these industries and the energy industry (in particular, the marine fuels industry). LNG is from the gas industry which is distinct from the oil industry.

Without an existing liquid paper market for many of these commodities (especially as a marine fuel), the price risk management is less straightforward. Furthermore, commodity prices are no longer the sole consideration for price itself. The price of compliance must be considered. This could range from guaranteeing the origin of the marine fuel, its sulphur properties as well as its carbon intensity. The list goes on.

MT: Operational wise, what are the changing role and responsibilities of a bunker supplier to date, compared to before IMO 2020?

The role and responsibility of a bunker supplier have evolved. Fundamentally, it has been about providing quality marine fuels at competitive prices. Quantity assurance has been a critical concern which led to the mandatory implementation of the mass flow meter system for bunkering in the Port of Singapore. Interestingly, due to the nature of credit terms in the bunker industry, bunker suppliers also performed the role of “bankers” by extending favourable credit terms to shipowners and charterers.

These days, post IMO 2020, things have become even more complicated. Today, a bunker supplier retains the abovementioned roles and responsibilities, and much more – it has to ensure compliance with a plethora of rules and regulations. Compliance not only with sulphur cap requirements, but with international and regional sanctions and restrictions unrelated to the quality of the marine fuel itself. In fact, especially with alternative low- and zero-carbon marine fuels, this means compliance with standards, rules and regulations on sustainability such as the European Renewable Energy Directive and/or International Sustainability and Carbon Certification. There is also the need to comply with increasingly stringent safety regulations on both conventional and alternative marine fuels.

In addition to the above, a post IMO 2020 bunker supplier is still expected to supply compliant and quality fuel at competitive prices.

MT: Equatorial is Singapore’s largest local-born supplier; what is the next big thing for the company?

Equatorial continues to adapt and improve with the times, while maintaining its core values – Integrity, Teamwork, Commitment, Proficiency and Quality, and Safety and Environment. The bunker industry is a highly competitive one, and it is our intention to keep our competitive edge and remain relevant. This means that we have had to step out of our comfort zone and embrace the two mega trends of our time – digitalisation and decarbonisation.

We have been early adopters and developers of the electronic bunkering note as part of our own digital bunkering efforts. We have diversified our product offering to include low carbon marine fuels and are proud to be one of the pioneers for bunkering B100 biofuels earlier this year. This was made possible by the arrival of our IMO Type II chemical and oil bunker tankers. These same bunker tankers are also capable for carrying and delivering methanol. Equatorial has invested in an LNG bunkering vessel (LBV) newbuilding that is set to be delivered in Q3 2027. We are also involved in a study to develop low- or zero-carbon ammonia bunkering in Singapore.

These are exciting times.

Note: Choong Sheen Mao is amongst panellists featured in ‘Session Three: Bunker Sellers Panel’ at the IBIA Annual Convention 2025.

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With over 300 delegates expected, the IBIA Annual Convention 2025 is set to be a defining moment for the marine fuels industry. Registration is now open via the IBIA Annual Convention website.

 

Photo credit: Manifold Times
Published: 31 October 2025

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