Heavy Fuel Oil: A Cost-Effective Solution for Land Power Generation

What is it and how does it work?
Marine fuel oil is a high-viscosity fuel produced by blending tar (residue) and vacuum gas oil — heavy fractions from primary oil refining. To be used in an engine, it must first be preheated. This fuel is used in special low-speed engines that operate successfully both on ships and in stationary power plants.

Why is this relevant right now?
Modern refineries carry out primary and deep refining of crude oil. Deep refining is a complex and expensive process that converts heavy fractions into light petroleum products. If secondary processing equipment is damaged or capacity-constrained, gasoline and kerosene output drops sharply, and the refinery ends up with a surplus of tar and gas oil. Refineries then face the problem of disposing of heavy fractions — which increases the supply of heavy fuel on the market and lowers its price.

Why is this relevant right now?
When secondary refining equipment is damaged or capacity-constrained, gasoline and kerosene output drops sharply, and a surplus of tar and gas oil builds up in the market. Refineries then face the challenge of disposing of heavy fractions — which drives down the price of heavy fuel.

Heavy Fuel Oil Power Solutions
Marine fuel oil is a high-viscosity fuel produced by blending tar (residue) and vacuum gas oil — heavy fractions from primary oil refining. To be used in an engine, it must first be preheated.

The benefit is obvious
Even before the current fuel crisis, heavy fuel oil–based generation for remote regions (without access to gas) was 2–3 times cheaper than diesel. Today, given the forced growth in the share of diesel vehicles in Russia, the advantage will increase to 3–4 times.
Bottom line: switching from diesel fuel to motor fuel oil is a strategic way to reduce the cost of electricity, especially amid a shortage of light petroleum products.