Bunker Fuel and Shipping: Navigating the Path to Cleaner Seas

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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

Bunker fuel has long been the backbone of maritime transportation, but it carries a heavy environmental price. Traditionally, ships relied on heavy fuel oil (HFO), a dense and sulfur-rich byproduct of oil refining. Burning HFO releases sulfur oxides, nitrogen oxides, and particulate matter, all of which pose risks to both human health and the environment.

The International Maritime Organization (IMO) introduced the IMO 2020 regulation, reducing the allowable sulfur content in marine fuel from 3.5% to 0.5%. This was a watershed moment for the industry, forcing many operators to switch to low-sulfur fuels, marine gas oil, or even invest in scrubber technology.

Beyond sulfur, greenhouse gas emissions are another concern. Shipping accounts for about 3% of global CO₂ emissions, a figure expected to grow as trade expands. As a result, shipowners are exploring cleaner alternatives like liquefied natural gas (LNG), biofuels, and synthetic fuels. Some companies are also testing wind-assisted propulsion and electric-hybrid solutions.

The transition is not without cost. Low-sulfur fuels are more expensive, and new infrastructure for LNG and hydrogen bunkering requires significant investment. However, the long-term benefits include improved air quality, reduced climate impact, and compliance with international climate goals.

Bunker fuel is at a crossroads: while it remains vital for global trade, its transformation into a cleaner energy source is inevitable and necessary.

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