Maritime consultancy 20|20 Marine Energy and BunkerMetric have signed a memorandum of understanding for the joint launch of a predictive analysis tool that will help ship owners, operators and fuel buyers to understand the implications of the 0.5% fuel sulphur cap.
The technology is designed to enable marine fuel stakeholders to implement the most effective strategy to minimize costs, mitigate risks and ensure compliance when the regulation comes into force on 1 January 2020.
The Sulphur Emissions Evaluation and Risk (SEER) management software is consistently updated in line with changes to fuel prices, as well as supply and demand scenarios on a regional and global basis.
At a tactical level, the tool can help buyers optimize their fuel procurement strategies on a vessel-by-vessel basis to minimize total bunker costs. SEER considers a range of factors that impact bunkering decisions, including fuel price forecasts, trade patterns, vessel speed, consumption, product specifications, time spent in emission control areas and tank sizes.
“There is a very high level of uncertainty and concern amongst fuel buyers surrounding the implementation of the global sulphur cap and its impact on their operation,” says Fernando Alvarez, Co-Founder at BunkerMetric.
“This uncertainty extends to fundamental questions, including pricing and availability of compliant fuels, the viability of abatement technologies, and the degree of adoption of alternative fuels. With all that is at stake, it is critical to have a disciplined evaluation of the different scenarios and risks that they will face to inform the best possible decision making.”
Using proprietary simulation and optimization algorithms, SEER generates an optimal bunkering plan, specifying the amount of each fuel type to purchase at each port call, reducing fuel costs and increasing efficiencies.
The tool can be used to benchmark existing fuel procurement practices and enables users to evaluate the cost and impact of different strategies for compliance with the sulphur cap.