How will IMO 2020 regulations affect oil prices? And how will costumers respond? Here you will find out more about IMO 2020 and how it could affect your business.
What is IMO 2020?
The first day of 2020, the International Maritime Organization (IMO) imposed a sulphur cap of 0.5 % in marine fuel oil. The substantial sulphur reduction from 3.5% m/m to 0.5% m/m applies for ships operating outside emission control areas (ECA). In ECAs like the Baltic Sea, North Sea, and US Caribbean Sea, the limit of 0.10% is already in effect with the use of marine distillates and ULSFO (Ultra Low Sulphur Fuel Oil).
What does IMO 2020 mean for your business?
The sulphur regulations drive the transition towards low-sulphur fuels, alternative fuels and scrubbers. Let us show you the most popular alternatives:
- Very Low Sulphur Fuel Oil (VLSF) covers the new range of blended products with a maximum of 0.5% sulphur, which makes it an IMO compliant fuel outside ECAs.
- Ultra-Low Sulphur Fuel Oil (ULSF) contains a maximum of 0.1% sulphur and is primarily used by ships working in ECAs.
- Scrubbers are exhaust gas cleaning systems that can be installed in order to allow shipowners to continue burning HSFO, while remaining compliant with IMO 2020.
