Hyundai Oilbank has introduced a new very low sulfur fuel oil (VLSFO) as part of its plan to expand marine fuel sales and respond to tightening global environmental standards. The company announced Thursday that the product, launched this month, contains less than 0.5% sulfur, meeting the stricter requirements set by the International Maritime Organization (IMO).
Original Refining Technology Enhances Fuel Quality
To develop the new VLSFO, Hyundai Oilbank used its own technology to remove asphaltene, a heavy component known to reduce fuel stability and vessel fuel efficiency. This is the first time the company has applied this process to ship fuel production. By eliminating asphaltene, the refiner said it improved the stability of the oil and increased flexibility in mixing different fuel types. This allows Hyundai Oilbank to adapt more easily to the rising demand for cleaner marine fuel.
Response to Strengthened IMO Regulations
The move comes as the IMO prepares to enforce a stricter sulfur cap from 2025. The new rule will limit sulfur content in ship fuel used outside Emission Control Areas to 0.5% mass by mass. This marks a significant reduction from the current limit of 3.5%, which has been in place since 2012 when it was lowered from 4.5%.
As a result, VLSFO is already trading at a premium over traditional marine fuel. Industry experts expect this price gap to grow once the new rule takes effect.
Market Outlook and Competition
According to Energy Aspects, a global energy research firm, global marine fuel demand is projected to reach 3 million barrels per day next year. More than half of that volume is expected to be VLSFO.
Hyundai Oilbank is not alone in its efforts. Other domestic and international refiners are also upgrading their refining capabilities and experimenting with different blends to meet the new standards.
Long-Term Strategy and Market Confidence
A Hyundai Oilbank official said the company has been working on core technologies for years in preparation for stricter environmental policies. “With our advanced refining process, we have already signed several long-term contracts and will continue to meet changing market demands,” the official said.
Hyundai Oilbank’s latest product positions the company to compete more effectively in the growing market for low-sulfur marine fuels, while helping shipping companies meet international environmental obligations.
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