E

MARINE ENVIRONMENT PROTECTION MEPC 70/5/25

COMMITTEE 1 September 2016
70th session Original: ENGLISH
Agenda item 5

AIR POLLUTION AND ENERGY EFFICIENCY

Experience on ultra-low sulphur fuel oils

Submitted by Belgium, Denmark, Finland, Germany,

the Netherlands, Norway and Sweden

SUMMARY

Executive summary: This document provides comments on document MEPC 70/5/3,

MEPC 70/5/6, MEPC 70/INF.6 and MEPC70/INF.13 which request
the Committee to approve the assessment of fuel oil availability and
to take action as appropriate. It aims to provide insight into
experiences gained with the currently available ultra-low sulphur fuel
oils with a maximum sulphur content of 0.10% m/m.

Strategic direction: 7.3

High-level action: 7.3.1

Output: 7.3.1.10

Action to be taken: Paragraph 9

Related documents: MEPC 67/INF.3; MEPC 68/21; MEPC 69/5/4, MEPC 69/21;
MEPC 70/5/3, MEPC 70/5/6, MEPC 70/INF.6 and MEPC 70/INF.13

1 This document is submitted in accordance with the provisions of paragraph 6.12.5 of

the Guidelines on the organization and method of work of the Maritime Safety Committee and
the Marine Environment Protection Committee and their subsidiary bodies
(MSC-MEPC.1/Circ.4/Rev.4) and provides comments on documents MEPC 70/5/3,
MEPC 70/5/6, MEPC 70/INF.6 and MEPC 70/INF.13 which provide the report of the Steering
Committee for the review of fuel oil availability as required by regulation 14.8 of MARPOL
Annex VI. The report assumes the introduction to the market of new low sulphur fuel oil blends
with a maximum sulphur content of 0.50% m/m meeting the new sulphur requirements,
henceforward referred to as LSFO.

2 The fuel availability report estimated the volume of fuel oil demand in 2020 on the
basis of the 2012 fuel volumes reported in the Third IMO GHG study 2014 (MEPC 67/INF.3).
This document aims to comment on the findings of the fuel availability report and on some

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concerns that have been expressed by sharing experiences gained with ultra-low sulphur fuel
oil with a maximum sulphur content of 0.10% m/m, henceforward referred to as ULSFO, which
have become available after 2012 and which were not included in the 2012 available volumes.
The currently available experience with ULSFO fuels demonstrates that producers and
operators are capable of responding to new market requirements. Experiences gained with
ULSFO can therefore provide valuable insight for fuel oil providers, purchasers and users when
making LSFO available, adapting vessel fuel procurement and handling procedures in
response to the new market demands after the 0.50% m/m compliance date.

Successful experiences gained with ULSFO

3 When the 0.10% sulphur requirement within ECA areas approached the
1 January 2015 implementation date, questions arose on the availability of compliant
conventional fuels. The global bunker market providing fuel to ships operating within ECA
areas responded appropriately. Distillate marine fuels with a maximum sulphur content of
0.10% m/m were made readily available before the switchover date of 1 January 2015.

4 Some oil majors had also anticipated the opportunity to make available an
economically more attractive ULSFO, initially referred to as hybrid fuels or ECA fuels. Around
the start of 2015 these new fuels became increasingly available. Since then, considerable
experience has been gained in blending, storing, handling and using these new fuels, and the
demand for such fuels has risen. Rotterdam's sales reached 800,000 to 900,000 Mt in 2015,
and are expected to reach similar levels in 20161.These newly available ULSFOs for the most
part fall within the ISO 8217 requirements for either Residual Marine (RM) fuels or Distillate
Marine (DM) fuels.

5 In order to comply with legislative requirements and ISO fuel specifications, ULSFO
producers generally use refinery products from crude oils with very low sulphur content,
products from hydrocracking- and hydrodesulphurization processes and imported cutterstocks
containing low amounts of sulphur. The required fuel formulations can differ from the
conventional higher viscosity (residual) fuels, and usually show a lower viscosity of between
10 and 80 centi-Stoke (cSt) at 50 degrees Celsius, with some reaching 180 cSt, a lower density
and a higher pour point. Further specifications and operational recommendations for usage on
board ships have been made publicly available, and are typically supplied with the ULSFO
product.

6 Recent publications by parties such as the International Council on Combustion

Engines (CIMAC) share their positive experiences with the new fuels2, and thus further
contribute to the insurance of problem free operation on board ships.

7 The production and availability of ULSFO is currently aimed at meeting regional

demands, while the IMO fuel availability report evaluates market availability of much larger
quantities of LSFO blends to meet the global demand for 0.50% after 2020. The projected new
volumes of global demand and supply of LSFO after the compliance date of the global sulphur
cap will expand the market for these fuels, and will promote the expansion of well-established
fuel management programmes for usage on board ships.

8 While the assumed widespread availability of LSFO blends from 2020 onwards is
considered a positive development, future LSFO producers are encouraged to provide clear
operational guidelines ahead of the compliance date of the global sulphur cap.

1 http://www.platts.com/latest-news/oil/london/rotterdam-sales-of-ulsfo-seen-close-to-1-mil-26360884
2 http://www.cimac.com/cms/upload/workinggroups/WG7/CIMAC_WG07_2015_Jun_Position_sulphur_
marine_ECA_fuels.pdf

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Action requested of the Committee

9 The Committee is invited to note the information provided.

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