Fuel optionality critical as transition risks grow - AET
Malaysian tanker operator AET is broadening its use of alternative fuels while warning that uncertainty around fuel availability and regulation could complicate the shipping industry's transition.
IMAGE: Crude oil tanker, Eagle Balder. AET
AET consumed a combined 3,200 mt of B24 and B30 biofuel blends across its fleet in 2025. It also completed its first liquefied biomethane (LBM) trial on one of its LNG dual-fuel vessels in February 2026, according to AET's annual report.
The company currently operates 13 LNG dual-fuel vessels. Another four LNG dual-fuel newbuilds are under construction, it said.
Beyond LNG, AET has ordered three ammonia-capable dual-fuel vessels, with deliveries scheduled to begin from 2028.
"22% of AET's existing fleet on water by fleet size is currently dual-fuel ready or capable, allowing customers the fuel optionality that is critical in today's quickly changing markets," the company said.
AET has warned that delays in the large-scale availability of low- and zero-emission fuels across key trade routes could create fuel uncertainty and asset investment risks, underscoring the importance of fuel optionality to navigate this uncertainty.
The company has also identified uncertainty around fuel availability, infrastructure readiness and the cost competitiveness of low- and zero-emission fuels as a key transition risk, warning that it could affect fleet deployment and capital allocation decisions.
AET has further warned that a fragmented regulatory landscape could complicate the transition.
The ongoing development of the IMO's Net-Zero Framework, alongside regional regulations such as the EU Emissions Trading System (ETS), FuelEU Maritime and emerging emissions trading schemes in other jurisdictions, could create uncertainty around carbon pricing, compliance timelines and overlapping regulatory obligations, it said.
"Divergence between these global and regional rules may lead to fragmented obligations and overlapping carbon costs," the company added.
By Konica Bhatt
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