UECC: Liquefied biomethane bunker fuel to enable compliance surplus under FuelEU

United European Car Carriers (UECC) on Monday (19 May) said bunkering liquefied biomethane (LBM), also known as bio-LNG, will give it a significant compliance surplus under FuelEU that can be monetised through the regulation’s pooling mechanism.

UECC’s Senior Manager of Business Planning & Sustainability, Masanori Nagashima, said bio-LNG is now seen by the company as the key fuel to achieve its target of a 45% reduction in carbon intensity by 2030 versus a 2014 baseline and net zero by 2040 – ahead of the 2050 deadline set by both the IMO and EU.

The marine fuel is being bunkered on UECC’s dual and multi-fuel LNG PCTCs – three of which have battery hybrid capability – under Sail for Change that was launched by UECC last year and currently has participation by automotive giants including Toyota, Ford and JLR. 

The company also has on order two multi-fuel LNG battery hybrid newbuild PCTCs due for delivery in 2028 that could be enlisted into the programme. 

The overall carbon intensity of the UECC fleet, using the same gCO2e/MJ (grams of CO2 equivalent per megajoule) metric as FuelEU, is calculated at 68 gCO2e/MJ to achieve an interim target of a 25% carbon intensity reduction in 2025, though the company is expected to achieve 57 gCO2e/MJ this year based on its supply plan, according to Nagashima.

This is significantly below the current FuelEU threshold of 89.3 gCO2e/MJ – a 2% reduction from the baseline of 91.16 gCO2e/MJ – and still lower than the threshold of 77.9 gCO2e/MJ from 2035 that is a 14.5% reduction versus the baseline figure.

“The low carbon intensity of our fleet means all of our vessels are expected to gain a C rating or above with the IMO’s Carbon Intensity Indicator (CII)” Nagashima explained.

“It also gives us a significant compliance surplus under FuelEU that can be monetised through the regulation’s pooling mechanism, allowing a great commercial opportunity to offset regulatory costs for customers and eliminate FuelEU surcharges.”

“UECC will continue to accelerate its progress in improving decarbonisation of its fleet by further optimising our fuel mix strategy going forward to incorporate more high-impact fuels as these become viable.”

Photo credit: United European Car Carriers
Published: 22 May, 2025