Genoa Bunker Fuel Market Report and Forecast 2024-2032

Genoa Bunker Fuel Market Outlook

The Genoa bunker fuel market size reached a volume of 1,037.39 KT in the year 2018. This market is further estimated to grow at a CAGR of 3.71% between 2024 and 2032 to reach a volume of 1,360.23 KT by 2032.

Key Takeaways

• The Ports of Genoa are among Europe's largest, handling significant volumes of goods and passengers. They constitute Italy's foremost port cluster, renowned for handling diverse traffic and serving as the primary logistics hub for Northern Italy's industries.

• Genoa's pivotal position as a major Mediterranean port renders it a vital nexus for maritime commerce, leading to substantial bunker fuel demand.

• Western Ligurian Sea Port Authority which covers Genoa Port is striving to reduce dependence on fossil fuels by exploring techniques to increase green energy production by utilizing solar, wind, and ocean waves, and engaging in research on the adoption of innovative green fuels.

Genoa offers a wide range of bunker fuel options, including traditional marine fuels like heavy fuel oil (HFO) and lighter options such as marine gas oil (MGO) and low-sulfur fuel oil (LSFO). This variety allows vessels to choose the most suitable fuel based on their requirements and compliance with environmental regulations.

In Italy, the primary seaport known for its bunker fuel availability is the Port of Genoa (Genova). Genoa is one of Italy's largest and busiest ports and serves as a key hub for maritime trade and fuel bunkering operations in the Mediterranean Sea.  The port's comprehensive facilities and strategic location make it a crucial point for refueling operations, offering a wide range of services including bunkering for ships passing through or operating in the region. The ports of Marseille and Barcelona of Spain compete with the Port Genoa to be the largest in the Mediterranean. The increasing government efforts to improve port infrastructure are expected to support the Genoa bunker fuel market development.

Figure: Italy Bunker Fuel Market, Top 15 Italian Ports per Handled Freights (Tons), 2019

Key Trends and Developments

Significant logistics activities; advantage of infrastructure and expansion projects in Genoa; prominent collaborations and innovations; and growing use of green and sustainable fuels are the key trends impacting the Genoa bunker fuel market growth

Feb 12, 2024

In a significant move, trading firm Vitol has agreed to acquire a controlling stake in Italian refiner Saras, making it private. The deal involves Vitol purchasing a 35% stake from Saras' largest shareholder, the Moratti family, with an option for further acquisition. This transaction values Saras at USD 1.904 billion.

Jun 23, 2023

Eni S.p.A. has reached an agreement with Vår Energi ASA to acquire Neptune Energy Group Limited, excluding its operations in Germany and Norway. Neptune is renowned for its gas-oriented assets in Western Europe, North Africa, Indonesia, and Australia.

Apr 24, 2023

Italy-based marine fuels company Alpha Trading is gearing up to offer biofuel bunker blends in Italy and Singapore. The company, known for its biodiesel division Oil.b, has been supplying biodiesel to Italy's road transportation sector since 2004. With a production facility near Milan producing 200,000 mt/year and storage capacity in Genoa and Savona totaling 14,000 m3, Alpha Trading is poised to expand its biofuel offerings to the marine sector, aligning with growing environmental concerns and regulations in the maritime industry.

Mar 28, 2023

Fratelli Cosulich expands its fleet to 16 vessels with the acquisition of the 2010-built Toto BR from Barone Shipping. The Genoa-based company plans to bareboat charter the 9,300 dwt vessel to Argo Shipping.

Prominent logistics and shipping activities

The logistics and shipping sector in Northern Italy heavily relies on the Ports of Genoa, with 70% of companies utilizing its facilities, and approximately one third of the country's container traffic passing through its terminals. Annually, the Port of Genoa handles around 2.5 million TEUs (twenty-foot equivalent units) of containerised cargo. This surge in logistics and shipping activity has significantly contributed to the Genoa bunker fuel market expansion.

Infrastructure advantages and expansion projects

The bunker fuel market favours the advantages of robust infrastructure, encompassing storage facilities, refineries, and distribution networks, which ensure dependable supply chains. Notably, the construction of the New Breakwater in Genoa, which is expected to be completed by 2026, stands out as Italy's largest port project with an aim to accommodate ships exceeding 400 meters in length and 60 meters in width, including "World Class" cruise ships, thereby enhancing the port's capabilities significantly.

Industrial collaboration and innovation in the Genoa bunker fuel market

Collaboration between stakeholders such as fuel suppliers, shipping companies, and regulatory bodies fosters innovation and ensures the sustainability of the bunker fuel market. For instance, in 2022 with a brand license agreement with PAD Mult energy, one of Italy's top fuel retailers, Shell re-enters the Italian market and broadens its global reach. Under the terms of the deal, 500 service stations in Italy will be rebranded as Shell by PAD Mult energy.

Rising use of sustainable fuels

Alternative fuels now have more prospects in the Genoa bunker market owing to the move towards greener and more sustainable fuels. Shipowners seeking to cut emissions are finding that liquefied natural gas (LNG), biofuels, and other alternative fuels are viable options. For instance, in collaboration with IPLOM, a local refinery of Genoa, Fratelli Cosulich Group successfully completed the first biofuel supply on a container vessel in Genoa in 2024. The company plans to produce and supply its own bio VLSFO in order to meet EU regulations and lessen the greenhouse gas intensity of marine fuels.

Genoa Bunker Fuel Market Trends

Italy's extensive coastline, stretching over 7,600 kilometres, provides ample opportunities for port development and maritime activities. The country boasts several major ports, including Genoa, Naples, and Trieste, which are crucial hubs for both domestic and international trade. These ports are equipped with modern infrastructure and facilities, making them attractive destinations for shipping companies and logistics providers. For instance, in the first three quarters of 2023, the port of Genoa handled a total of 41.16 million tonnes of goods. Increase in marine trade activities is leading to the Genoa bunker fuel market growth with the rise in export-import activities.

The growing usage of scrubbers within marine bunkers for the consumption of high-sulfur oil in Italy is part of a broader trend in the shipping industry towards compliance with environmental regulations, particularly the International Maritime Organization's (IMO) sulfur emission limits. The use of scrubbers in the Genoa bunker fuel market enables ships to continue using HSFO, which is typically cheaper than low-sulfur fuel oil (LSFO) or marine gas oil (MGO), thereby helping reduce operating costs.

Market Segmentation

“Genoa Bunker Fuel Market Report and Forecast 2024-2032” offers a detailed analysis of the market based on the following segments:

Market Breakup by Type

• Residual Fuel

• Distillate Fuel

• Others

Market Breakup by Fuel Grade

• High Sulphur Fuel Oil (HSFO) 

• Very Low Sulphur Fuel Oil (VLSFO) 

• Marine Diesel Oil (MDO)

• Liquefied Natural Gas (LNG)

Market Breakup by Commercial Distributors

• Oil Majors

• Large Independent

• Small Independent

Market Breakup by End Use

• Containers

• Bulk Carriers

• General Cargo

• Tankers

• Others

Based on fuel grade, very low sulphur fuel oil (VLSFO) is expected to account for a significant share of the Genoa bunker fuel market

The environmental concerns and the strict regulations by the Italian government related to emissions from maritime industry are anticipated to limit the usage of the heavy bunker fuels by limiting the content in bunker fuel to 0.10 percent. HSFO supply in the region has been constrained since the EU banned imports of Russian oil products almost a year ago.

Very Low Sulphur Fuel Oil (VLSFO) reduces air pollution, lowers sulphur oxide emissions, improves air quality, supports marine ecosystem health, and complies with global maritime regulations, making it environmentally preferable.

Based on commercial distributors, large independent distributors dominate the Genoa bunker fuel market share

According to the Genoa bunker fuel market analysis, large independent distributors commonly maintain efficient logistics and supply chain operations, enabled by their extensive storage facilities, blending capabilities, and established distribution networks. This infrastructure allows them to reliably deliver bunker fuel in a timely manner.

Due to their smaller customer base, small independent distributors have the capacity to offer personalized and attentive service to their customers. This enables them to foster strong relationships, comprehend individual needs, and deliver tailored solutions, thereby elevating levels of customer satisfaction and loyalty.

Competitive Landscape

The market players are engaged in price competition, service innovation, and strategic partnership to gain a competitive edge.

Alpha Trading SPA

Headquartered in Genoa, Italy, Alpha Trading SPA is a petroleum distribution company specializing in providing fuel and diesel to ships in ports. It serves as a bunker's supplier in the Mediterranean Sea and operates within the Italian domestic market, offering fuel oil, distillate, and modified bitumen.

Saras SPA

Founded in 1962, The Saras SPA engages in the energy sector and among Europe's independent oil refiners. It offers various fuel categories including diesel, gasoline, heating gasoil, LPG, virgin naphtha, aviation fuel, and bunkering.

Basile Petroli SPA

Basile Petroli SPA, headquartered in Taranto, Puglia, specializes in trading petroleum products, focusing on selling and distributing fuels and lubricants across interregional markets for various sectors including industries, agriculture, automotive, heating, and marine.

FRATELLI COSULICH S.p.A.

Founded in 1857, Fratelli Cosulich S.p.A. is engaged in marine fuel supply, delivering top-quality bunkering services globally. The Group specializes in maritime logistics, offering tailored solutions for ship management, agency services, and efficient supply chain management.

Enilive S.p.A.

Enilive S.p.A., a global energy company, is involved in natural gas and oil exploration, development, and extraction, alongside power generation from traditional and renewable sources, as well as refining and chemicals.

Key Highlights of the Report

Genoa Bunker Fuel Market Snapshots

Genoa Bunker Fuel Market Size

Genoa Bunker Fuel Market Trends

Genoa Bunker Fuel Companies