Argus spoke with marine fuels supplier KPI OceanConnect's global head of alternative fuels and carbon markets, Jesper L. Sørensen, on the sidelines of the Marine Fuels 360 conference ahead of the vote for a two-tier greenhouse gas (GHG) pricing mechanism at the International Maritime Organisation's (IMO) Marine Environment Protection Committee's (MEPC) second extraordinary session on 14-17 October.
What are some of the key challenges that you see until 2030?
The industry faces an important decision point with the forthcoming IMO session, which will shape the future. In the near term, supply for biofuels [and LNG] appears sufficient. The bigger task is scaling advanced feedstocks and building confidence in their use, so we have both technical acceptance and broader adoption as demand grows.
For the LNG side, the adoption is accelerating, and a healthy number of LNG-fuelled vessels are entering service. In southeast Asia, the market is highly concentrated today. Expanding licencing and LNG bunker vessel capacity would further support Singapore's role as a major demand hub, increase resilience, and encourage competitive service.
If the IMO's two-tier pricing mechanism is passed at the extraordinary session, what are the new fuels that will see an uptick in adoption?
Biofuels will continue to play an important role, alongside bio-energy and other low-carbon options. Ultimately, fuel choices will depend on the final IMO agreement. Clear guidance, especially where stakeholders have raised questions about relative treatment of fuels like LNG, will help the market invest and plan with confidence.
What is KPI OceanConnect's strategy regarding alternative marine fuels in its business? What is the company's vision?
We operate as both partner and aggregator. Producers need dependable offtake to reach FID. We bring customers together and help de-risk the demand side so projects can move forward, whether its methanol, ammonia, biofuels, or others. We also provide technical and commercial support so buyers can adopt new fuels smoothly.
Given the current higher adoption of biofuels versus other fuels like ammonia and hydrogen, how does KPI OceanConnect balance investment? How do you plan volumes globally?
Our investment focus is capability, not plants. Through our Green Centre of Excellence we have built expertise across biofuels, LNG, carbon markets, methanol and ammonia. It's about people, process, and knowledge to help our partners transition efficiently.
How is KPI OceanConnect helping clients prepare for compliance? And what are the challenges that you foresee that need to be tackled in this respect?
It's a wrongful assumption that paying the penalty is the cheaper option, and it comes with reputational damage. We aim to make compliance predictable. Beyond advisory and technical support, we can deliver a Compliance-Guaranteed Contract for clients who want an end-to-end solution: we provide input on the optimal fuel mix, routing, pooling and documentation and we stand behind the compliance outcome. It's a practical way to turn regulation into planned performance.
What is KPI OceanConnect's expectations of bunker prices for 2025, for both conventional and alternative fuels? What are the likely key drivers?
I really don't like to talk about the pricing overall. It almost always ages badly. So rather than point forecasts, we focus on the drivers: policy clarity and timing, and feedstock availability while monitoring geopolitical factors. Those elements will set the tone for conventional and low-carbon fuels alike. Our role is to structure supply and contracts so customers are resilient across scenarios.
