Entrepreneurial compliance opportunities for maritime fuel producers

Eunice Omolola Olaniyi (), Yassine Bakkar () and Gunnar Prause ()
Additional contact information
Eunice Omolola Olaniyi: Tallinn University of Technology, Estonia
Yassine Bakkar: Tallinn University of Technology, Estonia
Gunnar Prause: Tallinn University of Technology, Estonia

Entrepreneurship and Sustainability Issues, 2019, vol. 6, issue 4, 1550-1565

Abstract: In January 2015, the Sulphur Emission Control Areas (SECA) regulations changed so that ships that ply the Baltic Sea and the North Sea must no longer use bunker fuel that exceeds 0.1%. After the regulation of many compliances, changes occurred in the maritime sector, especially in the BSR. From studies, the impact is still somewhat negative for some maritime stakeholders such as small-scale fuel producing companies who must produce fuel that complies with the SECA requirements. The impact analysis of their compliance options shows that hydrodesulphurisation option is the most viable option with a commensurable investment return rate, but it is highly risky and expensive considering the incessant plummeting of fuel price and the financial status of such companies. However, even though the situation looks bleak for the small-scale maritime fuel producers, a more in-depth probe revealed a chance for exceptional opportunities for growth and profit through a change of business model to the maritime energy-contracting model (MEC). The study zooms in on a case fuel producing company, empirically considers and compares the MEC model (as a decentralised option) and the hydrodesulphurisation process (as a centralised option) and, if either option is adopted by as a SECA compliance strategy to ensure a rounded and robust choice making-process for maritime stakeholders in such situations.

Keywords: SECA regulations; business model; entrepreneurship; clean shipping; sustainability (search for similar items in EconPapers)
JEL-codes: G31 G32 L26 L98 M10 (search for similar items in EconPapers)
Date: 2019
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (3)

Downloads: (external link)
https://jssidoi.org/jesi/uploads/articles/24/Olani ... e_fuel_producers.pdf (application/pdf)
https://jssidoi.org/jesi/article/304 (text/html)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:ssi:jouesi:v:6:y:2019:i:4:p:1550-1565

DOI: 10.9770/jesi.2019.6.4(1)

Access Statistics for this article

Entrepreneurship and Sustainability Issues is currently edited by Manuela Tvaronaviciene

More articles in Entrepreneurship and Sustainability Issues from VsI Entrepreneurship and Sustainability Center
Bibliographic data for series maintained by Manuela Tvaronaviciene ().