Lloyd’s Register’s Fuel Oil Bunkering Analysis and Advisory Service (FOBAS), a leading provider of fuel testing and analysis services, specializing in the maritime industry, has released its Fuel Quality Report for the second half of 2024, assessing trends in marine fuel quality and anticipating challenges for 2025. The report highlights key concerns such as off-specification fuels, sulphur content compliance, total sediment increases, and forensic testing revealing the presence of unusual chemicals. It also emphasizes the growing role of biofuels, particularly FAME blends, and the impact of upcoming regulations, including the Mediterranean Sulphur Emission Control Area (SECA) and the European Union’s Emissions Trading System (EU ETS).
Table of Contents
Fuel Quality Trends in H2 2024
Fuel quality trends in the second half of 2024 largely mirrored those of the first half, with continued concerns over fuel stability and contamination. Notably, the use of biofuels continued to rise as ship operators adapted to new environmental regulations. Regional variations in fuel quality were evident, with certain ports experiencing more frequent issues.
Off-Specification Fuels and Compliance Issues
Residual based fuel oils Issues
Sulphur Content Concerns
- 2.5% of residual-based Very Low Sulphur Fuel Oil (VLSFO) samples tested had sulphur content between 0.50% m/m and 0.53% m/m, falling within acceptable limits under MARPOL Annex VI compliance frameworks.
- 0.80% of VLSFO samples exceeded 0.53% m/m, raising compliance concerns for vessels not equipped with Exhaust Gas Cleaning Systems (EGCS).
- IMO Annex VI guidelines state that supplier samples must not exceed the 0.50% m/m sulphur cap when a note of protest is issued.
Total Sediment Increase
- Rising total sediment levels are a growing concern, reversing a previously improving trend.
- Asphaltene instability is a primary cause, with certain ports exhibiting increased risk. Houston, Antwerp, Hong Kong, and Port Klang have reported higher sediment content.
- Santos remains a notable exception, with consistently low sediment results due to its naturally low-sulphur crude oil.
Acid Number Variability
- High acid numbers, though rare, have been observed, particularly in fuels from Northern Brazil and Venezuela.
- Acid numbers in the 0.50 – 1.00 range suggest potential contamination from organic acids, requiring careful handling.
Distillate Fuel Oil Issues
While distillate fuels (MGO, MDO) are generally cleaner than residual fuels, cold flow properties, flash point, and biofuel blending remain areas of concern:
- Cold Flow Properties:
- Cloud Point and Cold Filter Plugging Point (CFPP) remain key indicators of fuel performance in cold conditions.
- CFPP values tend to be higher in the Netherlands and Belgium (Rotterdam, Antwerp), requiring vessels to manage heating capabilities accordingly.
- Flash Point Compliance:
- Low flash point results persist, with marginal non-compliance cases recorded between 55-60°C, particularly in smaller ports supplying automotive-grade diesel to yachts.
- Pour Point Issues:
- Some distillate fuels bunkered in Singapore have recorded pour points between 0-6°C, potentially impacting operational efficiency in colder regions.
Forensic Testing and Chemical Contaminants
Forensic testing has revealed the presence of unusual compounds in certain fuel batches, prompting concerns over contamination risks:
- ARA (Amsterdam–Rotterdam–Antwerp) fuels have been found to contain phenols, diols, and alcohol-based compounds, linked to operational issues such as fuel pump and injector failures.
- Similar contamination was reported in Houston (2018), when affected fuels contained 4-cumylphenol and cyclohexane diol, leading to significant vessel disruptions.
- The presence of Estonian shale oil-derived components remains a common finding, particularly in Singapore and ARA ports.
Biofuel Developments and Adoption
The increased adoption of biofuels in 2024 continues to reshape the marine fuel landscape:
- FAME (Fatty Acid Methyl Ester) remains the dominant biofuel type, with compliance under EN 14214 and ASTM D6751 standards.
- HVO (Hydrotreated Vegetable Oil), categorized under EN 15940, is gaining traction as a paraffinic renewable diesel option.
- B30 (30% biofuel blends) have seen widespread trials with few reported issues. However, contamination incidents primarily stem from the VLSFO component rather than the biofuel itself.
- Singapore leads in biofuel adoption, with increasing activity in Algeciras and ARA ports.
- Ship operators are advised to clearly define fuel specifications before purchasing biofuels to mitigate quality risks.
Year Ahead – Key Regulatory Changes in 2025
- Mediterranean Sulphur Emission Control Area (SECA):
- Effective May 1, 2025, all ships operating in the Mediterranean must adhere to a 0.10% m/m sulphur cap, unless equipped with abatement technology.
- A transitional exemption remains in place until May 1, 2025.
- EU ETS & FuelEU Maritime:
- The inclusion of shipping in the EU Emissions Trading System (ETS) will drive increased biofuel demand and regulatory scrutiny.
- The Carbon Intensity Indicator (CII) will further incentivize cleaner fuel alternatives.
- Alternative Fuels Outlook:
- Development of methanol, ammonia, and hydrogen as alternative fuels continues, with their role expected to expand in the coming years.
Summary and Industry Implications
The FOBAS report underscores that marine fuel quality in the second half of 2024 remains largely consistent with the first half, but several persistent challenges remain:
- Compliance with sulphur limits continues to pose challenges, particularly for VLSFO users without scrubbers.
- Fuel stability concerns, including high total sediment levels, require careful monitoring, especially in key bunkering hubs such as Houston, Antwerp, and Port Klang.
- Chemical contamination incidents persist, particularly in ARA and Houston, highlighting the importance of forensic testing for risk mitigation.
- Biofuel adoption is accelerating, but quality assurance is essential to avoid operational issues.
- The introduction of the Mediterranean SECA and EU ETS will significantly impact bunkering patterns and fuel sourcing decisions moving into 2025.
As the shipping industry navigates these evolving challenges, ship operators and bunker suppliers must remain vigilant, ensuring that marine fuels meet stringent quality standards while aligning with upcoming regulatory shifts.
Download the report from Lloyd’s Register website to learn more: FOBAS Fuel Insight
FAQ on Marine Fuel Quality Trends in H2 2024
1. What were the main fuel quality trends observed in the second half of 2024?
The fuel quality trends in H2 2024 largely mirrored those of the first half of the year, with a continued increase in biofuel usage. Key issues persisted, including off-specification sulfur content, total sediment levels, and isolated instances of chemical contamination. Regional variations in fuel quality remained apparent, with some ports showing a higher risk of unstable fuel blends.
2. What are the primary concerns regarding off-specification fuels, particularly concerning sulfur content?
While the majority of residual fuels bunkered in 2024 were on-specification, exceeding the sulfur limit remains a significant issue. Although a margin of error exists for onboard inspections (up to 0.53% m/m), fuels testing above this level pose compliance problems for vessels without exhaust gas cleaning systems (EGCS), potentially requiring de-bunkering. Suppliers should aim for sulfur content well below the 0.50% m/m limit to avoid complications.
3. Why is Total Sediment a persistent problem in residual fuels, and where are the most affected ports?
High Total Sediment levels can stem from asphaltene instability in fuel blends and are a major concern. Houston and Antwerp are particularly challenging ports, followed by Hong Kong and Port Klang. The wider availability of blend stocks in these ports may increase the risk of incompatible and unstable blends. Conversely, ports like Santos, sourcing crude oil naturally low in sulfur, tend to have lower sediment results.
4. What is the significance of acid number in residual fuels, and what issues can arise from it?
While off-specification acid number results are rare, significant variation exists within the allowed range. High acid numbers, especially in certain South American ports, often indicate the presence of naphthenic acids, which are not necessarily concerning if they are expected. However, fuels with acid numbers in the 0.50 – 1.00 range may suggest the presence of other, potentially problematic, organic acids.
5. What are the main quality concerns regarding distillate fuels like Marine Gas Oil (MGO)?
Distillate fuels are generally cleaner than residual fuels, but key concerns include cold flow properties (cloud point, CFPP, pour point), regulatory parameters (flash point and sulfur), and biofuel blending. Low flash point and high sulfur content can lead to non-compliance. Elevated CFPP values can cause issues with fuel filter plugging, especially in colder regions.
6. What is the current status and future outlook for biofuel usage in the marine industry?
Biofuel usage is increasing, particularly VLSFO/FAME blends. B30 FAME-based fuels have been used successfully. Concerns exist around the transparency of the blend composition for some branded biofuels and the potential for decreasing FAME quality as demand increases. Singapore and Algeciras are prominent bunkering locations for biofuels.
7. What is the impact of the Mediterranean Sulphur Emission Control Area (SECA) coming into force in May 2025?
The Mediterranean SECA, effective May 1, 2025, mandates that vessels operating in the Mediterranean Sea comply with a 0.10% m/m sulfur limit unless using EGCS. This may significantly alter bunkering patterns and fuel availability in specific ports, requiring careful planning.
8. Besides fuel quality, what other regulatory changes and alternative fuels are impacting the maritime industry?
The inclusion of the marine industry in the EU ETS, FuelEU Maritime initiative and the Carbon Intensity Indicator (CII) are driving the adoption of biofuels. Other alternative fuels like methanol, hydrogen, and ammonia are being developed. There is a need to closely monitor the quality of biofuels and RFNBOs due to increased demand and cost pressures.
About FOBAS (Fuel Oil Bunkering Analysis and Services)
FOBAS (Fuel Oil Bunkering Analysis and Services) is a leading provider of fuel testing and analysis services, specializing in the maritime industry. Part of Lloyd’s Register, FOBAS helps ensure that ships comply with global fuel quality standards and regulations. By offering accurate and timely fuel testing, analysis, and advisory services, FOBAS assists vessel operators in managing fuel quality risks, optimizing performance, and ensuring the safe and efficient operation of their fleets. Their expertise supports the maritime industry in navigating fuel-related challenges and adhering to environmental regulations.
Source Lloyd’s Register