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ECSA calls for MBM fund & incentives for bunker fuel suppliers to decarbonise shipping

Introducing incentives for bunker fuel suppliers to make low- and zero-carbon fuels available in the market is a prerequisite for the decarbonisation of the sector.
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The European Committee Shipowners’ Associations (ECSA) on Monday (15 February) said the European Commission should address bunker fuel suppliers by introducing sub-targets to make low- and zero carbon fuels available for shipping and by increasing the multiplier for renewable fuels used in the maritime sector under the Renewable Energy Directive (RED).

A fuel standard as a requirement for ships, instead of fuel suppliers under the FuelEU Maritime proposal, would risk failing to deliver emissions reductions and would be challenging to enforce. If a Market Based Measure (MBM) is introduced, a fund could invest the revenues to support the uptake of these fuels.

A global approach must be the cornerstone of the EU’s policies and any regional measures would risk undermining the international negotiations at the IMO level, said ECSA.

As the shipping industry is fully committed to decarbonisation, success hinges primarily on the introduction of zero- or low-emission, safe and widely available alternative fuels, which do not yet exist. ECSA advocates a two-pronged approach if any EU measures are to be introduced:

1. Establish a fund under an MBM and using the revenues to finance R&D projects and to bridge the price gap between new and conventional fuels; At the same time
2. Incentivise and require fuel suppliers to include a certain percentage of low- and zero carbon fuels in their offering by introducing sub-targets and a higher multiplier for low- and zero-carbon fuels under RED.

“Introducing the right incentives and requirements for fuel suppliers in order to make low- and zero-carbon fuels for shipping available in the market is a prerequisite for the decarbonisation of the sector,” said Martin Dorsman, ECSA Secretary-General.

“As with the uptake of all new fuels, the chicken-and-egg dilemma can only be addressed by the introduction of appropriate requirements for fuel suppliers. A fund under an MBM could support the uptake of these fuels.

“A fund under an EU MBM would also minimise the administrative burden for the sector and would make sure that all revenues are invested in its energy transition.

“A fuel standard should be geared towards fuel suppliers and not ships, which are merely the fuel users. This is especially relevant and should be taken into account by the European Commission under the upcoming FuelEU Maritime proposal.

“We are quite concerned that should the FuelEU Maritime put forward a fuel standard as a requirement for ships, such a measure would seriously disrupt the bunkering market and would be challenging to enforce.

“More importantly, it would fail to incentivise energy efficiency improvements, be they technical (wind propulsion assistance, heat recovery system, hull and propeller optimization etc.) or operational (route optimization, slow steaming etc.).”

ECSA has submitted the position of the European shipping sector to the public consultation of the European Commission on the revision of the EU ETS and the Renewable Energy Directive.

Photo credit: ECSA
Published: 18 February, 2021

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Biofuel

GREENMARINE and Vertoro to accelerate adoption of lignin-alcohol as marine fuel

Like fossil oil, liquid lignin can be used as a platform for fuel, chemical and material applications.
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July 11, 2025

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Methanol marine fuels consultancy GREENMARINE and Vertoro, a Maersk-backed Dutch start-up focused on developing liquid lignin technology which can be used as a bunker fuel, has signed an agreement to jointly accelerate the market validation and commercial roll-out of lignin-alcohol as sustainable marine fuels.

“We at GREENMARINE Group are excited to join forces with Vertoro to bring their revolutionary lignin alcohol blend fuel to market,” said Fredrik Stubner, founder and CEO of GREENMARINE Group.

“This breakthrough technology redefines sustainable maritime fuels, delivering environmental benefits and cost efficiencies, paving the way for a greener, more competitive shipping industry.”

Dr. Michael Boot Boot, co-founder & co-CEO Vertoro, replied, “GREENMARINE Group has an excellent track record as a match maker for green fuel producers with engine manufacturers and shipping companies, opening many doors for us on both the fuel validation and offtake side.”

Vertoro, founded in 2017, produces liquid lignin exclusively from sustainably sourced forestry and agricultural residues by means of a patented thermochemical process. Like fossil oil, liquid lignin can be used as a platform for fuel, chemical and material applications.

Related: Maersk invests in Dutch start-up Vertoro to develop green lignin marine fuels

 

Photo credit: CHUTTERSNAP from Unsplash
Published: 11 July 2025

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Newbuilding

Singapore: Pinnacle Marine’s first B100 fuelled utility boat starts 1,000-hour research trial

Newbuilding operated by Prestige Ocean Pte Ltd will capture data on bunker fuel emissions, marine fuel behaviour, and performance.
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5 days ago

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July 9, 2025

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The 50th vessel constructed by local boat builder Pinnacle Marine (Singapore) Pte Ltd, namely President 100, is starting 1,000 hours of real-time research trials in collaboration with several parties from Wednesday (9 July) onwards, it says.

Powered by B100 biodiesel, the newbuilding operated by Prestige Ocean Pte Ltd will capture data on bunker fuel emissions, marine fuel behaviour, and performance.

It will be participating in trials with Maritime Energy & Sustainable Development Centre of Excellence (MESD), Weichai Singapore, China Classification Society, Pacific International Lines (PTE) Ltd, Abo Shoten, Ltd. / 株式会社安保商店 , Abo Singapore, Wilmar International, Gulf Marine, Amspec Testing & Services, and AYK Engineering and Consulting.

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The President 100, Pinnacle Marine’s first full biodiesel utility boat, was launched on Tuesday in the presence of over 100 guests.

“Our latest vessel, President 100, merges legacy and future. Named after our first aluminium boat (“President”) and inspired by B100 biodiesel, it leads the charge for our next 50 vessels — many of which will embrace green technology,” stated Pinnacle Marine in a LinkedIn post.

“The launch was amazing, with strong turnout from across the maritime sector — authorities, shipowners, operators, agencies, chandlers, researchers, offshore engineers, and petrochemical suppliers.”

It added: “We’re excited to see how it paves the way for wider adoption of B100 biodiesel — a cleaner, sustainable path for Singapore’s harbour craft sector.”

 

Photo credit: Pinnacle Marine (Singapore) Pte Ltd
Published: 9 July 2025

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Newbuilding

BHP awards charter contracts for two ammonia dual-fuelled bulk carriers

BHP continues to work with the maritime industry to develop an ammonia bunkering plan for the two vessels when they are delivered from 2028.

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5 days ago

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July 9, 2025

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BHP ammonia DF charters

Global resources company BHP on Wednesday (2 July) signed contracts with COSCO Shipping Bulk Co., Ltd., a subsidiary of COSCO shipping Group (COSCO Shipping) for the charter of two ammonia dual-fuelled Newcastlemax bulk carriers.

The new vessels to be built under this arrangement will be two of only a handful of vessels in the world capable of using ammonia as a bunker fuel.

The two vessels, expected to be delivered from 2028, will primarily transport iron ore from Western Australia to Northeast Asia.

When run on lower or low to zero greenhouse gas (GHG) emissions ammonia, these vessels will be capable of reducing GHG emissions by at least 50% and up to 95% on a per voyage basis compared to a conventionally fuelled voyage.

The five-year time charter contracts are expected to contribute towards a reduction in the GHG emissions intensity of BHP chartered shipping.

BHP continues to work with the maritime industry to develop an ammonia bunkering plan – the process of fuelling ships with ammonia – for the two vessels when they are delivered from 2028.

Sourcing lower and low to zero GHG emissions ammonia is subject to an ongoing tender process.

 

Photo credit: BHP
Published: 9 July 2025

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