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DNV updates Emissions Connect to help mitigate FuelEU Maritime challenges and risks

New update include users being able to gain an overview of the GHG intensity of vessels in a fleet, the cumulative compliance balance and penalty cost per vessel, where applicable.

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DNV updates Emissions Connect to help mitigate FuelEU Maritime challenges and risks

Classification society DNV on Thursday (5 September) has unveiled an upgrade to its emissions data verification and data management platform, Emissions Connect, which will enable the maritime sector to handle the commercial challenges and risks that come with the implementation of FuelEU Maritime. 

The update comes at a crucial time as the industry is grappling with the requirements that take effect from 1 January 2025.

Emissions Connect was first launched in 2023 to support the industry with the operational impact of multiple regulatory requirements and decarbonization trajectories. Specifically it helps the industry manage and control Carbon Intensity Indicator (CII) performance, manage the commercial obligations arising from the European Union’s (EU’s) Emissions Trading System (ETS) and now also the implicatons of FuelEU Maritime.

Pål Lande, Product Line Director, DNV Maritime, said: “The introduction of new regulation to drive decarbonization is creating a complex environment for organizations across the shipping sector. To assist companies in dealing with this change, we are pleased to be offering a solution that will help them manage the commercial impact of these new rules and collaborate across the supply chain. Accurate and verified data is crucial to instil trust and ensure effective collaboration within this complex environment.” 

FuelEU Maritime sets limits on the greenhouse gas (GHG) intensity of fuels used by ships calling at EU ports and progressively reduces these levels towards 2050. 

The regulation covers well-to-wake emissions from the entire fuel life cycle and requires ship managers to submit a monitoring plan, report emissions data annually and have their compliance balance verified. GHG intensity which is too high can lead to a negative balance, which, if not compensated in a pool with other ships, will trigger a penalty that the shipping company must pay to the national authorities.

To manage these challenges, the new update allows users to:

  • Gain an overview of the GHG intensity of vessels in a fleet, the cumulative compliance balance and penalty cost per vessel, where applicable
  • Evaluate different vessel pool set-ups by creating different fleets to explore the most suitable options for FuelEU Maritime management
  • Track an individual ship’s performance by viewing basic vessel data, information on the GHG intensity of energy within the scope of FuelEU Maritime, and the compliance balance and corresponding penalty cost, if applicable
  • Create verified emissions statements on voyage and custom period level

Built on the Veracity Data Workbench that supports customers with a strong emissions data management solution, Emissions Connect offers a high-quality emissions data baseline that is digitally verified.

High-quality emissions data provided by the shipowner is verified by DNV and shared with customers for self-service in settlement of transactions or other purposes such as reporting, exporting and secure sharing with partners and third parties, including banks and insurance companies adhering to the Poseidon Principles.

Note: Read more about Emissions connect here.

 

Photo credit: DNV
Published: 6 September, 2024

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Alternative Fuels

ENGINE on Fuel Switch Snapshot: LNG crosses $1,000/mt with EU regs

With EUA and FuelEU Maritime costs for voyages between two EU ports added, bunkering LNG in Rotterdam will now cost over $1,000/mt on ships powered by Otto medium speed engines.

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ENGINE on Fuel Switch Snapshot: LNG crosses $1,000/mt with EU regs

Once a week, bunker intelligence platform ENGINE will publish a snapshot of alternative and conventional bunker fuel prices in the world’s two biggest bunkering hubs. The following is the latest snapshot:

  • LNG can cost $1,000/mt with EU regulations added
  • B100 premium over VLSFO rises

Rotterdam’s VLSFO-equivalent LNG price has surged $41/mt higher in the past week.

This sharp increase has further widened its premiums over conventional fuels. Its premium over VLSFO has gone up by $36/mt to $242/mt, and over LSMGO by $52/mt to $146/mt.

With EU Allowance (EUA) and FuelEU Maritime costs for voyages between two EU ports added, bunkering LNG in Rotterdam will now cost over $1,000/mt on ships powered by Otto medium speed (Otto MS) engines. This engine type has the highest default methane slip (3.1%) in the FuelEU regulation.

ENGINE on Fuel Switch Snapshot: LNG crosses $1,000/mt with EU regs

Few shipowners have a direct choice between liquefied biomethane (LBM) and B100, as these fuels typically serve different vessel types and operational needs. But for dual-fuel shipowners bunkering in Rotterdam with that choice, LBM's cost advantage over B100 has increased when additional EU regulation costs are factored in.

For ships with Otto MS engines, LBM’s discount to B100 has widened to $25/mt when accounting for EU ETS compliance costs and FuelEU pooling benefits. This is an $11/mt increase from a week ago.

Liquid fuels

Rotterdam's VLSFO-equivalent B100 price has surged by $60/mt in the past week, increasing its premium over VLSFO by $51/mt to $626/mt.

PRIMA Markets has assessed the Dutch HBE rebate for B100 in Rotterdam to $357/mt, a modest $7/mt decline in a week of slow activity, PRIMA said.

“The market for HBE tickets flattened on Friday in what market participants called a quiet market, with some even suggesting they were 'bored', both for 2024 and 2025,” PRIMA said.

The theoretical FuelEU pooling value we assume for B100 has increased by $9/mt on the week, to $562/mt. When factoring in estimated EU ETS and FuelEU compliance benefits for voyages between two EU ports, the real cost of bunkering B100 is $722/mt. That is a $52/mt gain on the week.

Meanwhile, Rotterdam’s VLSFO price has countered a $21/mt ($2.83/bbl) drop in front-month Brent futures by gaining $5/mt over the past week. Singapore's VLSFO price has fallen by $6/mt.

Liquid gases

Rotterdam’s LNG price has rallied for another week. Its $41/mt weekly gain has mainly been driven by concerns over colder weather and low wind power output in Europe.

LNG’s sharp rise has also driven up the price of LBM, which is typically priced at a premium over fossil LNG.

When factoring in compliance costs and pooling benefits, the total cost of bunkering LBM can be as low as $562/mt when it is consumed in a diesel slow speed (diesel SS) engine with low methane slip (0.2%) between two EU ports. That is $275/mt less than fossil LNG consumed in the same diesel SS engine.

Meanwhile, Singapore’s VLSFO-equivalent LNG price has been rather steady, shedding $2/mt in the past week.

By Konica Bhatt

 

Photo credit and source: ENGINE
Published: 4 February, 2025

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FuelEU

Glander International Bunkering launches FuelEU Maritime compliance calculator

Simplified version of Compliance Calculator supports MGO and VLSFO, while the full version can calculate all bunker fuel types, offering users more comprehensive insights.

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Glander International Bunkering launches FuelEU Maritime compliance calculator

Bunker trading firm Glander International Bunkering on Tuesday (28 February) introduced a tool to help users calculate key data for compliance with FuelEU Maritime, which came into effect on 1 January.

FuelEU Maritime aims to reduce carbon emissions in the shipping sector by incentivising the use of alternative fuels and imposing penalties for non-compliance. 

With the new Compliance Calculator, Glander International Bunkering helps users understand potential penalties and savings based on voyage type, fuel, and quantity.

The Compliance Calculator is specifically designed for commercial vessels over 5,000 GT and adheres to the stricter FuelEU Maritime guidelines rather than the IMO’s.

The simplified version supports MGO and VLSFO, while the full version can calculate all fuel types, offering users more comprehensive insights. Additionally, the calculator is built to adapt to regulatory changes, with the next update planned for 2030.

Frederik Moser, Head of New Fuels, said, "As the industry adapts to new regulations, understanding the implications of fuel choices is crucial to operating efficiently and responsibly. Our goal is to help maritime operators reduce costs, avoid penalties, and transition to new fuels in a smoother, more efficient way."

Aligning with Glander International Bunkering’s ISCC EU and ISCC PLUS certifications, the Compliance Calculator demonstrates the benefits of certified biofuels and supports the company’s commitment to sustainability.

The simplified version of the Compliance Calculator is available here.

The full version of the calculator can be accessed by contacting the New Fuel Advisors at Glander International Bunkering.

 

Photo credit: Glander International Bunkering
Published: 3 February, 2025

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Alternative Fuels

UECC green bunker fuel investments avert FuelEU surcharges for customers

UECC said it has been able to eliminate surcharges for its customers under FuelEU Maritime as proactive adoption of green marine fuels has drastically reduced its financial exposure to the regulation.

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UECC and Titan team up on bio-LNG bunkering operations in Port of Zeebrugge

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

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