With the first FuelEU Maritime compliance data emerging after the inaugural year of greenhouse gas (GHG) intensity reporting for ships trading in the EU, marine insurer Skuld spoke with Joe Bettles, Climate Policy Manager and author of the Countdown newsletter at the Mærsk Mc-Kinney Møller Center for Zero Carbon Shipping, to examine what the early results reveal: 

The first data on FuelEU Maritime compliance is now emerging, following the first year of reporting against greenhouse gas (GHG) intensity targets for shipping companies trading in the EU.

To better understand what the early results show, we spoke with Joe Bettles, Climate Policy Manager and author of the Countdown newsletter at the Mærsk Mc-Kinney Møller Center for Zero Carbon Shipping (Center). The Center recently published its analysis of the first reporting year in the article “What did we learn from the first year of FuelEU?”

Under the regulation, shipowners have several options for compliance, including:

• The pooling mechanism, which allows vessels with a compliance surplus to trade it with other vessels.
• The borrowing mechanism, which allows companies to defer a compliance deficit to the following year for a 10% surcharge.
• Meet the target by using low GHG intensity fuels.
• Pay the FuelEU penalty (penalty).

Pooling becomes the preferred option

The first year of reporting indicates that pooling has quickly become the preferred choice. According to data from the European Commission, 92% of vessels used the pooling mechanism, while only 2% used borrowing. The remaining vessels either paid the penalty or met the target by using LNG or other low-GHG energy sources.

Commenting on the findings, Joe Bettles says: “Our insights from the first year of reporting indicate that shipping companies were able to comply with the targets, with most using the pooling mechanism. This shows that FuelEU is working as intended. As we approach the IMO’s upcoming discussion on the Net-Zero Framework (NZF), FuelEU demonstrates that it is possible for the global fleet to comply with a GHG intensity regulation using existing fuels and providing incentives for the uptake of cleaner energy sources.”

A developing market for compliance surplus

The Center’s article also reviews the different pooling platforms available to shipping companies seeking to meet their obligations under the regulation. The price of compliance surplus, averaging around EUR 208/tCO₂eq, remained relatively stable, suggesting that the market matured early, with buyers generally able to find sellers.

On the development of the pooling market, Joe notes: “The prices for trading compliance surpluses remained well below the EUR 640/tCO₂eq penalty for VLSFO, making the pooling mechanism significantly more attractive than paying the penalty.”

Fuel choices remain central to compliance

The role of fuel choice is also important. Looking at fuels supplied to the FuelEU market, the Center estimates that 3.22 million tCO₂eq of reductions, relative to an all-VLSFO fleet, will be required to meet the 2% reduction target between 2025 and 2029. Based on analysis of previous years’ fuel consumption, the Center indicates that LNG may have contributed around one-third of the required reduction. Biofuel blends account for the remainder, with biodiesel and bio-LNG dominating the low-GHG fuel mix.

Joe highlights how the pooling mechanism can help extend the impact of lower-GHG fuels across the fleet: “Although LNG is not a drop-in replacement for VLSFO, the pooling mechanism under FuelEU allows an LNG-fuelled vessel to share its over-compliance with other vessels that cannot physically use LNG. Depending on the engine type in the ship, LNG can remain compliant with the 14.5% reduction target through 2039 and can further extend its compliance through banked surplus or by using liquified biomethane.”

Three early lessons from FuelEU Maritime

Drawing on the first year of reporting, Joe Bettles and the Center identify three lessons that may also be relevant for the IMO in the future.

First, the results indicate that a fuel standard for shipping can work. FuelEU’s first year has created incentives for the use of alternative fuels and a market for those who prefer to pay for emissions compliance.

Second, regulations should include mechanisms that support a broader mix of energy sources. Lower-maturity alternatives, such as wind-assisted propulsion, e-fuels and onshore power, still represented a limited share of the mix.

Third, policy stability and clear reduction pathways can help reduce uncertainty for shipping companies and support the business case for investment in cleaner alternatives.

Supporting knowledge sharing across the maritime value chain

Skuld is a Mission Ambassador to the Mærsk Mc-Kinney Møller Center for Zero Carbon Shipping, supporting its work as a platform for collaboration, knowledge sharing and practical insight across the maritime value chain.

“The Mærsk Mc-Kinney Møller Center for Zero Carbon Shipping is a highly valuable forum for us at Skuld. It provides access to a broad network of industry stakeholders and helps us stay close to the challenges shipowners face in meeting regulatory requirements and reducing emissions. Just as importantly, it serves as a platform for dialogue and knowledge sharing across the maritime value chain” – Matias Bøe Olsen, Decarbonisation and transition risk lead, Skuld.

Note: Read the full article on FuelEU’s first-year experiences here.

Photo credit: Chris Pagan on Unsplash
Published: 7 August, 2026

Marine fuels supplier Peninsula on Wednesday (5 August) said it has signed a Memorandum of Understanding (MOU) with European independent liquid energy and chemicals storage company Evos to jointly progress the development of dedicated biofuel storage infrastructure at Evos’ terminal in the Port of Algeciras.

The proposed Evos expansion includes plans to develop up to 60,000 cubic metres of storage capacity, fully allocated to Peninsula to support the expansion of its biofuels supply chain in the region.

Located at the Strait of Gibraltar—one of the world’s busiest maritime corridors—the Evos Algeciras expansion project is intended to strengthen infrastructure for the energy transition in shipping. It will provide dedicated storage and handling capacity for low-carbon marine fuels, underpinning Peninsula’s quality proposition through control of its own supply chain.

John A. Bassadone, founder and CEO of Peninsula, said: “We are seeing an acceleration of biofuel adoption as a result of price volatility of conventional fuels and regulatory measures such as FuelEU and EU ETS. These regulations are designed to ratchet up, and biofuels are the most versatile, available option today to meet decarbonisation targets. 

“By partnering with Evos to build storage infrastructure, it allows us to control the quality of product and to blend biofuel ratios according to market demand. It will also offer our customers full flexibility and optionality when lifting bio products from us and further demonstrates Peninsula’s active commitment to the decarbonisation of marine fuels.”

Under the MOU, the parties will continue technical and commercial discussions on a long-term storage and handling agreement, subject to Evos’ final investment decision.

Evos will lead project development at its Algeciras terminal, including engineering, permitting and construction, while Peninsula will integrate the capacity into its growing global biofuels supply network.

Daan Vos, CEO at Evos, said: “Algeciras is already an important bunker and trading hub, with direct relevance to global shipping activity and inter-Mediterranean trade flows. Evos has a well-established position in the port as a bunker fuel storage terminal, and the expansion project with a strategic partner such as Peninsula builds on that position. 

“By developing infrastructure for marine biofuels, we can respond to changing demand in the bunker market and strengthen Algeciras’ role in the transition to lower-carbon shipping.”

The agreement reflects a shared ambition to support the evolution of the marine energy sector by investing in scalable, future-facing infrastructure in key global hubs.

Photo credit: Peninsula
Published: 6 August, 2026

State-owned Shipping Corporation of India (SCI) recently launched an international tender for the construction of up to six LNG dual-fuel container vessels as part of its fleet renewal programme.

The tender covers two firm orders with options for four additional vessels. Each ship will have a capacity of approximately 8,000 TEU and be capable of operating on LNG as well as conventional marine fuels.

Both Indian and foreign shipyards are eligible to bid, subject to SCI’s technical and financial requirements. 

Foreign yards must have delivered at least two container vessels exceeding 5,000 TEU that have entered service within the past 10 years. Indian shipyards without prior containership construction experience must partner with a reputed foreign yard that has previously built LNG dual-fuel vessels, capable of running on LNG and Conventional fuel which are in service.

According to the tender documents, SCI will evaluate bids based on factors including delivery and payment schedule of the vessel, bunker fuel consumption, service speed and cargo-carrying capacity.

Bids for the tender must be submitted by 31 August at 1700 hours IST and a virtual pre-bid meeting will be held on 18 August at 1500 hours. 

Photo credit: Naveed Ahmed on Unsplash
Published: 6 August, 2026