Innovations Driving the Future of Very Low Sulfur Fuel Oil (VLSFO)

Time Business News

09-07-2025

Very low sulfur fuel oil (VLSFO) is a sea fuel with sulfur content of 0.5% or less, which has been developed to follow the rules of the International Marine Organization (IMO) 2020 with the aim of reducing sulfur emissions from ships to protect air quality and environment. Very low sulfur fuel oil (VLSFO) is rapidly growing due to strict environmental rules, especially installation of emissions control areas (ECA) with tight sulfur boundaries. Marine industry's commitment to rising environmental awareness and stability is also promoting the demand for cleaner fuel options. These factors collectively run the strong expansion of the VLSFO market.
Key Growth Drivers and Opportunities
Supply Chain Digitalization: The supply chain digitization is emerging as a major trend in the VLSFO industry, increasing efficiency, transparency and accountability in fuel production and distribution. Techniques such as blockchain, IOT, and AI help to monitor fuel quality, adapt to inventory and predict demand, enable fast decision making and better compliance with environmental rules. This reduces digital change risk, reduces costs, and VLSFO strengthens confidence among stakeholders, supporting the sustainable development of the industry.
Challenges
Very low sulfur fuel oil (VLSFO) industry faces several borders, including limited global purification capacity to meet high production costs and increasing demand. Conversion can lead to operating challenges in issues of fuel quality and compatibility with the engine of the ship. Additionally, value instability, disruption in supply chain, and lack of standardized global rules obstruct market stability. These factors can affect the adoption rate for both suppliers and final-users in the marine industry and affect risks.
Innovation and Expansion
FuelEU-Compliant Co-Processed VLSFO Introduced by Vitol for Greener Shipping
In May 2025, Customers will be able to purchase co-processed bunkering fuel from Vitol Bunkers that complies with FuelEU regulations. The fuel is being manufactured at Vitol's refinery in Fujairah, which produces 100,000 barrels per day of finished bunker fuel. Vitol Bunkers will eventually market the gasoline in other areas.
There is no need for further licenses or specific provisions in charter party agreements since the co-processed fuel, which complies with RMG380 very low sulfur fuel oil (VLSFO) grade, has the same chemical composition and quality as conventional fuel.
HPCL Opens Visakhapatnam Port's VLSFO for the Shipping Sector
In January 2020, In Visakhapatnam, Hindustan Petroleum Corporation Limited (HPCL) introduced Very Low Sulphur Fuel Oil (VLSFO), which complies with IMO-2020. The product satisfies the standards of ISO 8217:2017 and the Residual Marine Grade (RMG) 0.50 Specification. Additionally, this gasoline satisfies every quality requirement listed in the newly published ISO 23263:2019 standard by the International Organization of Standardization.
HPCL has made steps at both refineries to produce BS-VI compliant transport fuels ahead of schedule in order to uphold its commitment to environmental preservation. Additionally, both refineries have embarked on ambitious expansion projects to boost their capacities from 7.5 to 9.5 MMTPA at the Mumbai Refinery and 8.33 to 15 MMTPA at the Visakh Refinery.
Inventive Sparks, Expanding Markets
Very low sulfur fuel oil (VLSFO) is one of the major players working in the market, Exon Mobil Corporation, BP PLC, Vitol Bunkers, Shell International BV, and others. To maintain compliance with the quality of continuous fuel and changing environmental needs, very low sulfur fuel oil (VLSFO) firms must invest in modern purification processes. Businesses are also focused on increasing their global bunkering infrastructure to increase supply chain efficiency, especially in ports with heavy traffic.
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