UAE aims to be 'global leader in maritime' with low-carbon fuels in works

The UAE is "actively enhancing" its menu of low-carbon shipping fuels at Fujairah in its quest to become "a global leader in maritime," an energy ministry official told a conference in the emirate on the UAE's east coast on April 8.

"Here at Fujairah, the maritime hub of the UAE, we are actively enhancing the capabilities in alternative maritime fuels, including LNG, methanol, ammonia and biofuels to meet the evolving demand of global shipping and environmental standards," Saif Almarri, undersecretary assistant for petroleum, gas and minerals for the UAE Ministry of Energy & Infrastructure, said. "The UAE is committed to reducing the carbon footprint of the maritime industry through our pioneering initiative, including the adoption of alternative fuels and the development of smart eco-friendly vessels."

Fujairah is the world's third-largest bunkering hub, supplying almost 7.5 million mt of shipping fuel in 2024, up 1.8% from 2023.

But the shipping industry is under the gun to reduce emissions and reach a net-zero target set by the International Maritime Organization by 2050. "We will move forward in the way that is expected," Arsenio Dominguez, the IMO's secretary general, told the International Fujairah Bunkering & Fuel Oil Forum being held in Fujairah on the UAE's east coast via a video call.

Alternative fuel projects at Fujairah include a biofuels plant by Bahrain-based Mercantile & Maritime oil traders and the first biofuel supply to a ship by Vopak at its Vopak Horizon Fujairah joint venture.

The port is also a major hub for storage of crude and petroleum products, with a capacity at more than 100 million barrels, according to Mohammed al-Kindi, the UAE's former minister of environment and water who now helps organize the Fujairah forum.

"Fujairah is rapidly transforming into a highly sought-after destination for investment, driven by its strategic location and infrastructure development that includes new storage projects," Kindi said. He attributed the increase in ship fuel sales at the port in 2024 to the port's strategic location just 70 nautical miles outside of the global oil chokepoint Strait of Hormuz.