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Source: Journal Citation ReportsTM from ClarivateTM 2022

Entrepreneurship and Sustainability Issues Open access
Journal Impact FactorTM (2022) 1.7
Journal Citation IndicatorTM (2022) 0.42
Received: 2019-02-15  |  Accepted: 2019-04-10  |  Published: 2019-06-30

Title

Entrepreneurial compliance opportunities for maritime fuel producers


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


JEL classifications

G31 , G32 , L26 , L98 , M10


URI

http://jssidoi.org/jesi/article/304


DOI


Pages

1550-1565


Funding

This work is in principle linked to the EnviSuM – Environmental Impact of Low Emission Shipping: Measurements and Modelling Strategies project sponsored by the European Regional Development Fund.

This is an open access issue and all published articles are licensed under a
Creative Commons Attribution 4.0 International License

Authors

Olaniyi, Eunice Omolola
Tallinn University of Technology, Tallinn, Estonia http://ttu.ee
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Bakkar, Yassine
Tallinn University of Technology, Tallinn, Estonia http://ttu.ee
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Prause, Gunnar
Tallinn University of Technology, Tallinn, Estonia http://ttu.ee
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Journal title

Entrepreneurship and Sustainability Issues

Volume

6


Number

4


Issue date

June 2019


Issue DOI


ISSN

ISSN 2345-0282 (online)


Publisher

VšĮ Entrepreneurship and Sustainability Center, Vilnius, Lithuania

Cited

Google Scholar

Article views & downloads

HTML views: 3788  |  PDF downloads: 1915

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