Marine fuels supplier Peninsula recently published an article on why bio-LNG is emerging as a key fuel pathway in the maritime energy transition:

As the maritime industry accelerates its decarbonisation journey, operators face a growing challenge: reducing emissions while maintaining operational efficiency and commercial viability. While no single fuel offers a universal solution, Bio-LNG is increasingly attracting attention as a practical pathway for LNG-fuelled vessels seeking immediate emissions reductions without major infrastructure changes. 

The conversation around alternative fuels often focuses on future technologies and long-term investments. However, for many operators, the more pressing question is how to reduce emissions today using solutions that can be implemented within existing operations. This is where Bio-LNG presents a compelling proposition. 

“As operators look to balance compliance, cost and operational performance, Bio-LNG offers a practical solution that can be integrated into existing LNG infrastructure today. Increasing availability across key bunkering locations is helping turn decarbonisation ambitions into operational reality.” Cristina Danes, LNG Supply Trader, Peninsula. 

Building on Existing LNG Infrastructure 

BioLNG is a renewable marine fuel produced from certified biogenic waste feedstocks. While its origin differs from conventional LNG, it remains chemically equivalent, allowing it to be used within existing LNG infrastructure and dual-fuel engines. This compatibility eliminates the need for costly vessel modifications or extensive retrofitting programmes, reducing both complexity and investment requirements. 

For operators that have already invested in LNG-capable vessels, bioLNG offers a clear route to further improve environmental performance while leveraging existing assets and supply chains. 

The increasing availability of bioLNG across key bunkering hubs is helping remove barriers to adoption. Recent supply operations, including Peninsula’s first Bio-LNG delivery in the Port of Cadiz, illustrate how renewable marine fuels are becoming more accessible through existing LNG supply chains. 

Delivering Meaningful Emissions Reductions 

As regulatory requirements continue to evolve, the ability to demonstrate measurable emissions reductions is becoming increasingly important. BioLNG can achieve lifecycle greenhouse gas emissions reductions of up to 90% compared with conventional marine fuels when produced from certified waste-based feedstocks. 

These reductions represent a significant opportunity for vessel operators looking to improve their environmental performance while balancing commercial considerations and operational requirements. 

Supporting Regulatory Compliance 

Alongside emissions reduction targets, compliance is becoming an increasingly central consideration in fuel procurement decisions. 

Frameworks such as FuelEU Maritime are creating new incentives for lower-carbon fuel adoption while introducing additional complexity into compliance planning. In this environment, BioLNG can play an important role in helping operators manage their emissions profile and support broader compliance strategies, including participation in mechanisms such as FuelEU pooling. 

As regulations continue to develop, flexibility will become an increasingly valuable asset. Fuels that can deliver both environmental and compliance benefits are likely to play a growing role in operators’ fuel strategies. 

A Practical Step Forward 

The maritime energy transition will require a mix of solutions, technologies and fuel pathways. While longer-term alternatives continue to develop, BioLNG provides an immediately available option for LNG-fuelled vessels seeking to reduce emissions and prepare for a more carbon-conscious operating environment. 

For many operators, the transition to lower-carbon shipping will not be defined by a single transformational change, but by a series of practical steps. BioLNG represents one such step: leveraging existing infrastructure, supporting regulatory compliance and helping bridge the gap between today’s operations and the future of shipping.

Photo credit: Peninsula
Published: 11 August, 2026

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 Alliance (MFA) on Friday (3 July) said it has connected with TidalIQ, which has provided an emissions calculator for its website.

MFA said the FuelEU Maritime has turned vessel emissions performance into a commercial issue. Operators now need to understand whether their fleet is in surplus or deficit, what that means financially, and whether pooling can reduce cost or create value.

“The emissions calculator helps users estimate vessel or fleet compliance positions, potential penalty exposure, pooling requirements and the indicative value of surplus compliance,” the alliance said in a social media post.

From there, the TidalIQ platform helps users move from calculation to action: managing fleet compliance, identifying pooling opportunities, generating standardised documentation and maintaining a clear audit trail for verifiers and internal records.

“For operators facing deficits, TidalIQ helps identify a more cost-effective route to compliance. For operators with surplus, it creates a clearer path to monetising better-performing vessels,” it added.

“FuelEU compliance is no longer just a regulatory task. It is a commercial decision – and TidalIQ helps the market make that decision confidently.” 

Note: The emissions calculator can be found here. 

Photo credit: Marine Fuels Alliance
Published: 6 July, 2026