The UAE is actively working to expand the availability of low-carbon shipping fuels at Fujairah, according to an energy ministry official speaking at a conference in the emirate on April 8th. This initiative is part of the UAE’s broader ambition to establish itself as a global leader in the maritime sector, reports S&P Global.
Oil Infrastructure
Fujairah, the world’s third-largest bunkering hub, experienced a 1.8% increase in shipping fuel supply in 2024, reaching almost 7.5 million metric tons (mt), compared to 2023.
Despite this growth, the shipping industry faces increasing pressure to reduce emissions and achieve the International Maritime Organization’s (IMO) net-zero target by 2050. Arsenio Dominguez, the IMO’s secretary general, addressed the International Fujairah Bunkering & Fuel Oil Forum via video call, stating the industry will move forward in the expected manner to meet these goals.
Fujairah is actively exploring alternative fuel projects to support this transition. These include:
- A biofuels plant being developed by Bahrain-based Mercantile & Maritime oil traders.
- The first biofuel supply to a ship by Vopak at its Vopak Horizon Fujairah joint venture, which involved ISCC-certified B24 biofuel.
Beyond bunkering, the port of Fujairah is also a significant hub for the storage of crude oil and petroleum products, boasting a capacity of over 100 million barrels, according to Mohammed al-Kindi, a former UAE minister and organizer of the Fujairah forum. Other sources indicate the storage capacity has grown even further, reaching almost 18 million cubic meters (approximately 113 million barrels) by July 2024.
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Source: S&P Global
