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Tuesday, May 30, 2023

Fujairah, UAE needs to invest more in new bunker fuels – executive

DUBAI, March 15 – Fujairah in the UAE must invest more in the storage and supply of new alternative fuels despite the urgent need to decarbonize the sea, industry executives said on Wednesday, as the markets are the third largest in the world. Fueling centers remain unattractive.

The maritime industry must find alternative fuels to meet carbon reduction targets set by the United Nations International Maritime Organization, which include reducing carbon emissions by 40% from 2008 levels by 2030 and reducing total greenhouse gas (GHG) emissions by 2050 50% reduction.

Despite being an important bunkering port, Fujairah has been lagging behind hubs like Singapore and Rotterdam be prepared Alternative fuel markets such as liquefied natural gas (LNG), biofuels and methanol.

Law Say Huat, general manager of storage company Vopak Horizon Fujairah Terminals Ltd, said potential investments in Fujairah should include repurposing storage tanks to accommodate these future fuels.

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“In terms of new energy, there are a lot of developments in terms of decarbonization in other hubs. We should not fail on this (in Fujairah),” Law said at the Fujairah Fuel Oil Forum (FUJCON) in 2023. Wednesday.

However, barriers exist to strengthening these investments, including a lack of cooperation.

“What may be really missing is engagement among registered stakeholders,” said Nizamuddin Noorali, managing director of storage terminal company GTI Fujairah.

“Everyone is doing their own thing, and it’s kind of siled…with no central involvement, the value chain can be added end-to-end,” Noorali added.

Lack of digitization and transparency will also hinder adoption.

“If you look at the bunkering operations off Fujairah today and how they are measured, the quantities are still done manually,” said Kenneth Dam, head of bunkering at TFG Marine, on the sidelines of the forum. He added that this manual operation was more time-consuming, Human error is more prone to occur.

In contrast, top fuel hub Singapore has stepped up efforts to digitize its fuel supply business, which could help pave the way for new fuels, he added.

Unlike Singapore, spot supplies of these fuels in Fujairah are progressing slowly due to a lack of immediate demand, trade sources said on the sidelines of the forum, although supplies will start in the next few years.

Methanol and LNG are expected to hold the largest market share of Fujairah’s alternative marine fuels by 2050, followed by biofuels and ammonia, according to online poll results from the FUJCON Forum.

“I hope in two years’ time, when we come back to Fujairah[for the next FUJCON]we’re not just talking about being able to deliver LNG fuel, but that we actually have the capability,” said Peter LNG, chairman of industry alliance SEA-LNG. Keller said on the forum.

Fujairah is expected to continue to be one of the largest refueling hubs in the world.The port sees record oil throughput in 2022 and is expected to register strong storage needs Move forward.

Reporting by Jeslyn Lerh; Editing by Angus MacSwan

Our standards: Thomson Reuters Trust Principles.

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