United European Car Carriers (UECC) on Monday (20 January) said it has been able to eliminate surcharges for its customers under FuelEU Maritime as proactive adoption of green fuels has drastically reduced its financial exposure to the newly implemented regulation.

Currently, switching to low-carbon biofuels is generally seen as the most effective route to achieve compliance with progressively tighter carbon intensity reduction targets and thereby avoid penalties under FEUM, which is designed to promote uptake of alternative fuel technologies towards the goal of net zero.

However, this approach will typically entail higher fuel costs for shipping companies given that biofuels - which can deliver respective reductions of 85% and 100% in well-to-wake and tank-to-wake emissions - cost between 50-150% more than conventional fossil fuels, while there is also limited feedstock supply.

An additional ‘Energy Surcharge’ levied on shippers to compensate for this price differential can be as much as 2-5% with the use of biofuel, according to UECC’s Energy & Sustainability Manager Daniel Gent.

But he said: “UECC will change absolutely nothing about its pricing structure in relation to FEUM.”

Gent explained this is largely due to the fact that UECC has already achieved significant reductions in carbon intensity by expanding the use of biofuels across its 15-vessel fleet since 2020. 

It has also adopted liquefied biomethane (LBM) on its five dual and multi-fuel LNG Pure Car and Truck Carriers under the Sail for Change sustainability initiative launched last year that is supported by several major vehicle manufacturers.

“Consequently, we are already running a compliance surplus in relation to FEUM with our current energy mix and this is expected to extend into the early 2030s,” he says.

“We have previously informed our customers that their support for our investment in multi-fuel LNG vessels would insulate them against regulatory penalties and this is exactly what is happening here. This demonstrates the clear benefits of being ahead of regulation, investing in progressive technology and in the process of generating savings for our customers.”

UECC’s fleet decarbonisation effort has focused on investments in eco-friendly newbuilds - with two more multi-fuel LNG battery hybrid PCTCs currently on order - as well as piloting alternative fuels, in addition to operational efficiencies and technical measures such as waste heat recovery and hull anti-fouling.

The company has rigorous fuel selection criteria based on sustainability, technical suitability and commercial viability. Its bio-products are compliant with Renewable Energy Directive (RED) criteria and sourced from Annex 9 feedstocks in line with regulatory requirements, while all fuels used are ISCC-certified.

Through a proactive fuel procurement strategy, UECC has secured volumes of alternative fuels for the longer term through agreements with suppliers like Titan Clean Fuels for LBM and ACT Commodities for biofuels to promote green fuel bunkering infrastructure. It is also diversifying its sources of supply, such as through a recent first truck-to-ship LBM refuelling operation with Naturgy in Spain.

“LBM from certain feedstocks or including carbon capture are the ‘heavy lifters’ on our decarbonisation journey and we see huge potential in these fuels,” Gent says.

UECC is firmly on track to achieve a minimum 45% reduction in carbon intensity by 2030 to surpass the IMO target, while it is also set to exceed the required FEUM reduction of 31% by 2040 versus a 2020 baseline of 91.16 grams of CO2 equivalent per megajoule.

This means that UECC will have a sufficient compliance surplus to provide a pooling opportunity for third-party vessels under FEUM “so that all stakeholders can benefit from our investments”, according to Gent. But he says the company is not resting on its laurels and intends to make further alternative fuel investments with the aim of phasing out oil-based fossil fuels by 2040.

“As we are going ‘above and beyond’ in terms of our commitment to alternative fuels such as LBM and biofuel, we expect to have a significant compliance surplus under FEUM. With the investments we are planning in such fuels, UECC will never be in a position of needing to buy or borrow compliance units,” Gent concluded.

Related: UECC wraps up first truck-to-ship bio-LNG bunkering operation in Spain
Related: JLR joins UECC bio-LNG initiative to decarbonise maritime transport
Related: Titan to supply biomethane bunker fuel to UECC multi-fuel ships with new deal
Related: UECC and Titan team up on bio-LNG bunkering operations in Port of Zeebrugge

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

CBL International Limited (CBL), the listing vehicle of Banle Group (Banle), a marine fuel logistic company in the Asia-Pacific region, on Tuesday (21 January) announced that its Chairman and CEO, Mr. Teck Lim Chia, was recently featured in an exclusive interview on Nasdaq's Amplify Spotlight programme, in which he provides a company update and his vision for CBL’s sustainable fuels.

The Nasdaq Issuer Spotlight interview series explores how industry leaders are evolving and navigating challenges in various industries.

In a discussion with host Michael Spector, Mr. Chia delves into CBL's mission to provide comprehensive one-stop refuelling solutions across over 60 ports globally, with a strong commitment to sustainability. 

He highlights the company's significant growth since its founding in 2015, including its public listing on Nasdaq in 2023, and its expansion into new markets such as Europe, Africa, in addition to Asia Pacific. 

Mr. Chia also discusses the company's adoption of sustainable fuels like B24 biofuel, which led to a nearly 96% increase in its biofuel sales in 1H2024, aligning with global decarbonisation efforts.

Mr. Teck Lim Chia, Chairman and CEO of CBL International Limited, said: “It is a great honor to be featured on Nasdaq’s Amplify Issuer Spotlight. This opportunity underscores the remarkable growth and the significant strides CBL has made in the global bunkering industry.”

“As we continue to expand our footprint across new markets, our commitment to sustainability remains at the core of our operations. We are excited about the future of the bunkering industry and our role in driving the transition to more sustainable fuels, contributing to the global decarbonisation efforts.”

“At CBL, we are dedicated to providing safe, reliable, and environmentally responsible refuelling solutions, and this platform further enhances our mission towards a greener future.”

The full interview is now available through the image below:

Photo credit: Nasdaq
Published: 22 January, 2025

Fratelli Cosulich Group on Monday (20 January) said it has placed an order for another methanol-ready chemical bunkering tanker with Taizhou Maple Leaf Shipbuilding.

The 7,999 dwt IMO Type II chemical bunkering tanker is designed to carry fuel oil, biofuels up to B100, and methanol.

“The delivery of this methanol-ready vessel is scheduled for Q4 2026,” it said in a statement. 

With this latest order, the total number of methanol-ready barges in the company’s fleet will increase to four.

“We strongly believe in a multi-energy future and are dedicated to staying ahead of the curve with the latest developments and technological innovations in the shipping industry,” it added. 

Manifold Times previously reported Fratelli Cosulich placing an order for two advanced methanol-ready chemical bunkering tankers with the same shipbuilder.

The company ordered its first methanol dual-fuelled chemical bunker tanker on 15 December 2023.  The vessel will be delivered in the last quarter of 2025 and will be located at the Port of Singapore under a contract with global commodities trader Trafigura.

Related: Fratelli Cosulich orders its first methanol dual-fuelled bunker tanker to serve Singapore
Related: Steel cutting begins on Fratelli Cosulich methanol dual-fuel bunker tanker
Related: Fratelli Cosulich orders two methanol-ready chemical bunker tankers

Photo credit: Scott Graham on Unsplash
Published: 21 January, 2025