IMO 2020 and Beyond: Transforming the Bunker Fuel Landscape

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Bunker fuel market is expected to grow at a CAGR of 4.30% from 2024 to 2032, reaching a value of USD 124.35 Bn In 2023

The future of bunker fuel is tied directly to the decarbonization of shipping. The sector is under pressure to cut carbon emissions by 50% by 2050, as outlined by the IMO. This goal is prompting a shift away from conventional heavy fuel oil toward greener alternatives.

While very low sulfur fuel oil (VLSFO) currently dominates the market, it is seen as a transitional solution rather than a long-term fix. Future fuels such as LNG, methanol, ammonia, and hydrogen are being actively explored. These alternatives promise lower emissions but require new engine technologies and bunkering infrastructure.

The industry is also experimenting with biofuels and synthetic fuels derived from renewable sources. Some shipping companies are piloting vessels capable of running on dual-fuel systems, ensuring flexibility during the transition phase.

Digitalization and blockchain are also making inroads into bunkering operations, ensuring transparency in pricing, fuel quality, and delivery logistics.

The road ahead is challenging, with high costs and uncertain timelines for infrastructure development. However, the push for decarbonization will redefine bunker fuel from a dirty residue-based product into a cleaner, more sustainable energy solution for shipping.

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