A new era at sea: How ready is Türkiye for ULSFO?
At a time when global environmental awareness is increasing and emissions regulations are becoming increasingly stringent, fuel technologies are also undergoing transformation. Ultra Low Sulfur Fuel Oil (ULSFO), particularly used in the maritime sector, stands out as one of the most concrete steps in this transformation. With a sulfur content below 0.1%, this fuel type has become a hot topic for industry players with the IMO 2020 regulations.
WHAT IS ULSFO, WHY IS IT IMPORTANT?
ULSFO is a marine fuel with a significantly lower sulfur content than conventional fuel oil. While sulfur emissions pose serious risks to the environment and human health, ULSFO minimizes these impacts, contributing to its primary goal of protecting air quality.
With the low sulfur regulations put in place by the IMO, the use of these fuels has become mandatory within the Emission Control Areas (ECA) designated especially along the coasts of the USA and Europe.
IS Türkiye READY FOR THIS TRANSFORMATION?
Türkiye, with its strategic location between the Mediterranean and Black Seas, hosts heavy maritime traffic. So, what about the Turkish equivalent of ULSFO?
Experts note that domestic refineries have made some preparations for ULSFO production, but the product is still largely imported. Furthermore, the logistical unavailability of ULSFO at every port can also impact operational planning.
According to information from the energy sector, some refineries are working on low-sulfur distillate blends to gain production flexibility.
WHAT IS PRODUCED IN Türkiye?
• Large refineries such as TÜPRAŞ made some conversions before 2020 for the production of low-sulfur marine fuel.
• In order to comply with the IMO 2020 regulation, the production of VLSFO (Very Low Sulfur Fuel Oil), especially containing 0.5 percent sulfur, has become widespread.
• ULSFO, which has a sulfur content below 0.1 percent, is a product that is particularly suitable for ECA regions and can be produced in very limited quantities in Türkiye and blended specifically to meet demand.
WHY LIMITED?
• Demand is low: Since the Turkish coasts have not been declared an ECA region by the IMO, the ship traffic that will necessarily use this fuel is limited.
• High cost: ULSFO is distillate-based (lighter) and requires a more expensive and complex production process for refineries.
• Import-oriented: A significant portion of the ULSFO used in Turkish ports is supplied by imports, especially from centers such as Rotterdam and Singapore.
Türkiye's production flexibility for marine fuels is increasing annually. However, ultra-low-sulfur fuel oil (ULSFO) is still produced at domestic refineries on a limited scale and on a tailored basis. The majority of ULSFO demand is met through imports.
COSTS AND ALTERNATIVES
Because ULSFO production requires more refined processes, its price is higher than conventional fuel oil. This creates a significant cost, especially for small and medium-sized shipowners.
To offset these costs, some maritime companies invest in exhaust gas cleaning systems called scrubbers, while others prefer to switch directly to ULSFO.
THE FUEL OF THE FUTURE?
ULSFO is currently considered a "transitional" fuel. The industry is expected to shift to alternative, carbon-neutral fuels like LNG, hydrogen, and methanol in the medium to long term. However, this transition is likely to take time. Until then, ULSFO will continue to exist as a more environmentally friendly solution.
Increasing Türkiye's capacity in ULSFO will contribute not only to the maritime sector but also to its green transformation goals. The widespread use of ULSFO requires a rethinking of energy strategies in terms of both environmental and economic balances.
What is IMO 2020?IMO 2020 is the environmental regulation of the International Maritime Organization (IMO) that came into effect on January 1, 2020. This regulation reduced the maximum sulfur content of fuel oil used on ships from 3.5 percent to 0.5 percent.
What is the Purpose?
Conventional fuel oil used in the maritime industry contains high levels of sulfur, which increases sulfur oxide (SOx) emissions and:
• It causes acid rain,
• Increases the risk of respiratory diseases in humans,
• It generally impairs air quality.
IMO 2020 aims to protect both the environment and human health by reducing these harmful effects.
Who Does It Cover?
• The regulation covers all commercial ships operating worldwide.
• Valid for both offshore and port operations.
• However, in some regions (such as the US coast and Northern Europe), an even stricter 0.1 percent limit applies. These areas are called ECAs (Emission Control Areas).
What kind of sanctions did it have for the ships?
With IMO 2020, shipowners have three main options:
1. Using low sulfur fuels such as ULSFO (0.1 percent) or VLSFO (0.5 percent),
2. Continuing to use old fuels by installing a scrubber (exhaust gas purification system),
3. Turning to the use of alternative fuels (LNG, methanol, etc.).
Global Impact
• Fuel markets have been reshaped.
• Refineries transformed their production.
• Shipping costs and logistics planning have changed.
• Environmental awareness has increased.
What is the ECA Region?ECA is the abbreviation for Emission Control Area. In Turkish: Emisyon Kontrol Alan.
These zones are sea areas demarcated by special environmental protection regulations to reduce air pollution. Ships operating in these areas are required to use significantly lower-sulfur fuels than those in other sea areas.
Why Is It Important?
• Air quality is protected more sensitively in ECA regions.
• Ships must use ultra-low sulfur fuel (ULSFO) containing 0.1 percent sulfur.
• In case of violation, heavy fines and port restrictions may be applied.
Major ECA Regions in the World:
1. North American Coasts (Atlantic and Pacific coasts of the United States and Canada)
2. Caribbean (around Puerto Rico and the Virgin Islands of the United States)
3. Northern Europe (Baltic Sea, North Sea, England and the English Channel area)
4. Norwegian Fjords (to be included in the ECA from 2026)
Is Türkiye in the ECA Region?
Currently, the Turkish coastline is not included in the ECA zone. However, efforts to declare the entire Mediterranean an ECA zone are on the IMO's agenda. If this decision is made, ships operating in port cities like Izmir, Mersin, and Istanbul may be required to use ULSFO.
Petrol Ofisi Group Maritime Senior Manager Aydın Yıldız
"WE REACHED MORE THAN 10,000 TONS OF ULSFO SALES VOLUME IN MAY, THE FIRST MONTH OF THE MED ECA TRANSITION."
Petrol Ofisi Group Maritime Senior Manager Aydın Yıldız answered our questions on the subject.
What are the impacts of IMO 2020 and EU fuel regulations on Turkish companies? How did your company transition to ULSFO?
I can say that IMO 2020 and EU regulations, particularly the inclusion of the Mediterranean within the Emission Control Area (MED ECA) as of May 1, 2025, have increased the demand for low-sulfur fuels in the maritime sector. For example, since the MED ECA regulation prohibits the use of fuels containing more than 0.10 percent sulfur, companies in our country are turning to more environmentally friendly fuels. Therefore, as Petrol Ofisi Group, we quickly adapted to this change. In April 2025, we pioneered the industry by supplying ECA-compliant 0.10 percent sulfur ULSFO (Ultra Low Sulfur Fuel) in Türkiye. Subsequently, we began ULSFO production at our terminal in Derince, Kocaeli. Thanks to the meticulous work of our Terminal Operations and Supply Management teams, we prioritized operational safety and completed our product testing. In May, the first month of the MED ECA transition, we reached a sales volume of over 10,000 tons of ULSFO. By combining our production technology with our supply power, we are taking pioneering steps towards the sustainable future of our industry, enabling us to provide uninterrupted and rapid ULSFO supply to both domestic and transit vessels.
How does the price difference between ULSFO and conventional fuels affect industry players, especially operational costs?
This issue can be examined as two separate topics for ship owners and shippers. ULSFO, due to its low sulfur content, is a fuel that complies with environmental regulations (such as the IMO 2020 Sulfur Cap) and is therefore more expensive than traditional high-sulfur fuels. For ship owners on the Mediterranean route, new regulations such as the EU/ETS or the expected IMO 2028 require investment, high tax burdens, or the purchase of high-priced fuels. Furthermore, the use and handling of new fuels on the market also creates a new operational learning environment for ship owners.
From our perspective, the first challenge we faced was ensuring the compatibility of quality products and the compatibility of our bunkering vessels with the new fuel. The high price and technical requirements of ULSFO created both cost and transformation pressures for bunkering vessels. This created significant impacts on areas such as inventory management, quality control, contract flexibility, and the need for capital investment. However, for bunkering vessels that manage this process effectively, maintain customer trust, and offer new solutions, opportunities for differentiation and growth also arise. To adapt to change as quickly as possible, we began retrofitting some of our fleet's barges to incorporate ULSFO tanks in March. With ULSFO production at the Derince Terminal, we implemented the most secure strategy in terms of availability and quality. By providing our customers with the necessary information and guidance as early as possible, we ensured that we were always there for them in their journey to adapt to change.
Does choosing clean fuels increase customer portfolio or competitiveness?
The preference for environmentally friendly, low-emission fuels has now gone beyond a mere regulatory requirement. Efforts in this direction have also become a key element in terms of prestige and brand reliability. Companies offering clean fuels can reach a much broader customer base, from international carriers to regional operators, further enhancing their competitiveness. The transition to clean fuels also positively impacts our customer base and competitiveness. As PO/Marine, the innovative steps we've taken to comply with IMO 2020, EU, and MED ECA regulations enable us to provide environmentally friendly and fully compliant fuel supplies to both domestic and transit vessels. We are the leader in the Turkish market with nearly 1 million tons of marine fuel bunkering annually and enhance our competitiveness in global waters by bunkering ships in more than 80 different countries. Our ability to perform biofuel bunkering with ISCC certification in global waters also strengthens our competitiveness and sustainability vision.
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