- Viva Energy is now producing IMO2020 grade fuel oil at its Geelong refinery in southern Australia.
- Marine fuel used in Australian waters is currently restricted to 3.5% sulfur bar in some ports, which will change to 0.5% from next year.
Australia’s Viva Energy is now producing IMO2020 grade fuel oil at its Geelong refinery in southern Australia, reports Ship&Bunker.
Sulfur bar restrictions
The company commented that the compliant fuel is currently being tested with customers. Marine fuel used in Australian waters is currently restricted to 3.5% sulfur bar in some ports. From the start of next year, the sulfur cap on bunker fuel for global shipping falls to 0.5%.
Fuel costs in Global market
Viva general manager, Thys Heyns said that the fuel costs would rise with the price largely determined by the global market.
The rise comes “because there’s more processing and higher value components go into it“, Heyns was quoted as saying by Australian news provider ABC.
He added, “But it’s really unclear how much that’ll be,”.
IMO2020 compliant fuel
Market observers put the premium of IMO2020 compliant fuel oil over high sulfur fuel oil at around $200 per metric tonne or higher.
Did you subscribe to our daily newsletter?
It’s Free! Click here to Subscribe!
Source: Ship&Bunker
