FuelEU

EmissionLink highlights smaller ship operators struggle with FuelEU compliance

Industry leaders are rapidly positioning themselves to thrive under the new rules, while smaller companies risk falling behind, facing steep penalties and potential loss of market share, says firm.

Published

8 months ago

September 2, 2024

Admin

EmissionLink, a member of Columbia Group, on Friday (30 August) said industry leaders are rapidly positioning themselves to thrive under the upcoming FuelEU Maritime Regulation, while smaller companies risk falling behind, facing steep penalties and potential loss of market share.

This warning comes ahead of the 31 August deadline for shipping companies to prepare and submit their FuelEU Maritime Monitoring Plans.

EmissionLink said there are concerns that while industry leaders are investing in low-carbon technologies, optimising their operations, and ensuring compliance strategies are in place, some companies, particularly smaller operators, are clinging to outdated practices and also face limited resources, lacking the expertise and financial capability to understand the compliance and submit their plans.

“A significant number of shipowners and operators have yet to submit their FuelEU Monitoring Plans, citing complexity of the compliance and the lack of clear guidance and inconsistent support from regulators about the correct steps to take,” warned Philippos Ioulianou, Columbia Group Director of Energy and Renewables.

“Although there is some leeway to do this by the start of next year, we expect there to be a huge rush later in the year, so the earlier companies get their plans submitted and verified, the better.”

Columbia Group is an active member of ship management trade association InterManager, and, on behalf of its members, InterManager has taken part in extensive discussion with the EU in relation to FuelEU and EU-ETS.

InterManager members have stressed to the EU the need for it to employ a ‘polluter pays’ approach to environmental legislation. The association points out that, in effect, ship managers are the facility managers and not the factory owners.

Ship managers are not responsible for decisions in relation to the origin of the fuel, its supply, or procurement decisions, or the technical specification of the ships they manage, Columbia says.

However, they are responsible for checking that the fuel delivered to the vessels conforms to the specifications ordered by owners or charterers and are also responsible for ensuring the fuel is handled properly onboard the vessel and, where different qualities are on the vessel, for ensuring the right fuel is burned at the right times. This is in line with the obligations placed on ship managers under the ISM Code.

Ship managers are therefore also concerned that the proposed FuelEU legislation makes them the responsible party and have warned that, as the ruleset currently stands, there is a high risk of litigation once the scheme is implemented.

To help ship owners and operators navigate the challenges posed by the new FuelEU Maritime Regulation, EmissionLink was launched by Columbia Group as a one-stop shop platform using AI to streamline processes and ensure compliance with the evolving regulatory landscape including FuelEU requirements and the EU Emissions Trading Scheme (ETS).

The platform offers transparency in managing the fuel life cycle and helps companies collect, clean, analyse, and forecast emissions data so clients can create long-term green strategies and reduce their emissions.

The FuelEU Maritime Regulation, a key component of the EU's "Fit for 55" package, is set to reshape the shipping industry by enforcing strict greenhouse gas (GHG) intensity reductions. Starting in January 2025, all ships of 5,000 gross tonnage (GT) and above will be required to significantly lower their GHG emissions, with incremental targets leading to an 80% reduction by 2050.

The regulation requires companies to submit detailed Monitoring Plans that outline how they will measure and report their GHG intensity. This includes tracking 100% of energy used on voyages between EU ports and 50% on voyages between EU and non-EU ports. Failure to comply by the deadline could result in severe financial penalties and operational setbacks, putting lagging companies at a significant disadvantage.

“The FuelEU Maritime Regulation creates new challenges that require foresight and agility and shipowners must be ready to steer through the challenges ahead,” said Mr Ioulianou. “Non-compliance isn’t just a financial risk—it’s a strategic risk. As the industry moves toward greener practices, those who lag behind will find it harder to compete, not just in terms of meeting regulations, but in maintaining market share.”

Photo credit: william william on Unsplash
Published: 2 September, 2024

Related Topics:FuelEU Others - Environment Port & Regulatory - Decarbonisation

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FuelEU

FincoEnergies launches pooling service for FuelEU Maritime compliance

FuelEU Pooling service enables undercompliant vessels to meet their compliance targets by pooling with vessels running on GoodFuels sustainable bio bunker fuels.

Published

5 days ago

April 21, 2025

Admin

GoodFuels biofuel supplier FincoEnergies on Wednesday (16 April) announced the launch of its FuelEU Pooling service, created to enable shipowners to meet FuelEU Maritime compliance in a cost-effective way.

FuelEU Maritime, effective from 1 January 2025, mandates the reduction of greenhouse gas intensity of energy used on board ships trading in the EU. For many operators, particularly those with limited access to low-carbon fuels, compliance can be both complex and costly.

Designed for shipowners, operators, charterers, and technical managers, FincoEnergies’ FuelEU Pooling service enables undercompliant vessels to meet their compliance targets by pooling with vessels running on GoodFuels sustainable biofuels, when these vessels are overcompliant and have ‘Surplus’ emission reduction available for allocation.

FincoEnergies also partnered with Lloyd’s Register (LR), who supported the development of the service. Their technical expertise has enabled shaping a solution that aligns with both regulatory requirements and FincoEnergies' established position as a biofuel supplier in the fuel supply chain.

“FuelEU Maritime represents one of the most important regulatory shifts for the shipping industry in decades,” said Alberto Perez, Global Head, Maritime Commercial Markets at LR. “By integrating technical expertise with strategic guidance, we ensure shipowners, operators, and suppliers not only comply with evolving emissions standards, but also proactively transform their operations, embracing new technologies and alternative fuels to ensure a sustainable and profitable future.”

“With a decade of experience in biofuel bunkers and carbon certificate trading in the voluntary market, we are excited to expand our creative and solution-oriented product portfolio with FuelEU Pooling,” said Johannes Schurmann, Commercial Director International Marine at FincoEnergies.

“Thanks to our physical presence in the supply chain, shipping companies looking for FuelEU surplus can confidently rely on us as a trusted partner in their decarbonisation journey.”

Through its role as Pool Organiser, FincoEnergies streamlines the entire pooling process – from performing biofuel bunkers and prefinancing Surplus, to Surplus allocation and pool verification. With cost-effective pricing, FuelEU Pooling provides shipping companies with a competitive alternative for changing their fuel mix themselves.

Photo credit: FincoEnergies
Published: 21 April, 2025

Decarbonisation

VPS: Turning shipping’s regulatory demands into operational and commercial advantages

Steve Bee and Emilian Buksak explore how the company can support the shipping industry in transforming challenges of environmental legislations into operational efficiencies and commercial benefits.

Published

3 weeks ago

April 8, 2025

Admin

Steve Bee, Group Marketing and Strategic Projects Director, and Emilian Buksak, Decarbonisation Advisor of marine fuels testing company VPS, on Monday (7 April) explored how the company can support the shipping industry in transforming the challenges of environmental legislations into operational efficiencies and commercial benefits:

As far back as 1981, long before the word “sustainable” was ever applied to the protection of the planet, VPS marine fuel quality testing (FQT) service was clearly focused on achieving a sustainable global shipping fleet. Even before the existence of any international marine fuel quality standard, VPS was testing fuel to ensure the protection of, vessel operations and engines, crew health & safety and the environment.

At present, global shipping is navigating its way on a voyage to decarbonisation and sustainability, with increasingly complex regulatory and legislative requirements being placed upon vessel owners and operators. In support of such requirements, digitalisation and the demand for immediate accurate data, along with the use of low-to-zero carbon fuels, are now necessities within shipping, as it strives to achieve numerous levels of compliance.

Today, VPS continues to provide market-leading testing and inspection services that support shipowners & operators to comply with and go beyond regulatory requirements, by extending the lifetime and usage of fuels and lube oils and indirectly that of the assets in which they’re employed. VPS testing and data solutions support vessel operators by providing comprehensive services that bridge the gap between complex regulations and practical, day-to-day operations.

Through fuel quality testing, VPS verifies a vessel’s fuel, be it fossil, bio-based or methanol, that it’s meeting current stringent specifications. By identifying quality issues early, operators avoid engine damage, unplanned downtime, and expensive retrofits. Even as new low-carbon fuels enter the market, VPS’s in-depth testing ensures every batch is “fit for purpose,” giving vessel operators confidence as these alternative fuels are being assessed. Through the test data generated VPS helps its customers gain the most value from their procured fuels.

Rigorous lubricant testing complements this, helping fine-tune equipment to maintain operational efficiency and reduce downtime. Additionally, VPS deploys emissions measurement equipment to gather accurate data crucial for both compliance reporting and operational insights.

Then, beyond testing and its associated data services, VPS offers decarbonisation software and advisory services spanning strategic decarbonisation planning, to vessel fuel performance optimization, including speed and power generation management, technical and operational efficiency initiatives, and even basic crew training. By pinpointing improvement areas across a vessel’s operating cycle, VPS helps reduce fuel consumption, lower emissions, and ultimately support operators’ transition to cleaner and more cost-effective operations.

But first let us look at the current legislative requirements and its challenges.

From the initial implementation of the International Maritime Organisation (IMO) MARPOL Annex VI, coming into force on 19th May 2005, shipping has witnessed numerous levels of legislation being introduced to which vessels must comply.

Decarbonisation targets, are driven in the main by the IMO and its initial strategy for a reduction in the carbon intensity of international shipping (to reduce CO2 emissions across international shipping, by at least 40% by 2030, pursuing efforts towards 70% by 2050, compared to 2008) and that total annual GHG emissions from international shipping should be reduced by at least 50% by 2050 compared to 2008.

In 2023, IMO introduced a revision to its decarbonisation strategy, stating the carbon intensity of ships needs to decline through further improvement of the energy efficiency of new ships. Also, the need to strengthen the energy efficiency design requirements for ships, leading to a reduction in the carbon intensity of ships, so supporting the reduction of CO2 emissions by at least 40% by 2030, compared to 2008. Also, the uptake of zero or near-zero GHG emission technologies, fuels and/or energy sources to increase and represent at least 5%, striving for 10%, of the energy used by international shipping by 2030 and GHG emissions from international shipping to reach net zero by or around 2050.

This strategy revision introduced Indicative Checkpoints, to monitor the progress of the reduction of the total annual GHG emissions from international shipping by at least 20%, striving for 30%, by 2030, compared to 2008 and the reduction of the total annual GHG emissions from international shipping by at least 70%, striving for 80%, by 2040, compared to 2008.

The IMO GHG strategy is supported by:

CII - Carbon Intensity Index, which determines the annual reduction factor needed to ensure continuous improvement of a ship's operational carbon intensity within a specific rating level. The ratings go from an inferior performance level – E, to the major superior level – A. Measuring the CO₂ emitted per cargo-carrying capacity per nautical mile, CII incorporates, speed optimization, biofouling management and alternative fuels usage.

Each year it becomes more difficult for a ship to improve its CII rating. But the best performing vessels are likely to trade at a premium.

Since 2024, the CII must be calculated and reported to the Data Collection System Verifier along with the previous year’s aggregated DCS data. This must include any correction factors or voyage adjustments. The deadline for DCS and CII submission is no later than 31 March each year.

The attained annual operational CII and the environmental rating (A to E) is noted on the DCS Statement of Compliance (SoC), which is required to be kept on board for five years.

In case of a D rating for three consecutive years or one E rating, the Ships Energy Efficiency Management Plan (SEEMP) Part III must be updated with a corrective action plan and verified before the SoC can be issued. The corrective action plan should consist of an analysis of why the required CII was not achieved and include a revised implementation plan.

It is worth noting at this point that the use of low-carbon fuels such as LNG, Bio-LNG, Biofuels and Methanol, offer immediate emissions reductions, which will significantly assist vessels improve their CII ratings and comply with the tightening regulations.

For over four years VPS have led the market in the understanding of marine biofuels and methanol. VPS laboratories have undertaken significant R&D work regarding innovative testing technologies and methods, to assist in improved fuel management and environmental compliance. Between 2021-2024 VPS tested samples equating to over 1.6million mt of delivered biofuels. This work has covered bio-components such as the most common FAME, plus HVO, Cashew Nut Shell Liquid (CNSL) and Tyre Pyrolysis Oil (TPO). Such experience and expertise are then passed on to VPS customers to enhance their understanding of such fuels and achieve the emissions reduction and efficiency improvements required.

Note: The full article by VPS can be read here.

Photo credit: VPS
Published: 8 April, 2025

Biofuel

OceanScore launches free-to-use digital platform to trade FuelEU biofuel compliance credits

In an interview with Manifold Times, Managing Director Albrecht Grell said the new platform supports current marketing practises used by EU-based biofuels suppliers and bunker trading firms.

Published

3 weeks ago

April 7, 2025

Admin

OceanScore launches free-to-use digital platform to trade FuelEU biofuel compliance credits

Hamburg-based technology platform OceanScore has launched a platform to facilitate the trading of biofuel surpluses and deficits under the FuelEU Maritime Regulation pooling scheme, learns bunkering publication Manifold Times.

The platform is designed to be simple and user-friendly, allowing bunker companies to find buyers for their surplus biofuels and shipping companies to find suppliers. It is free-to-use, with a low fee for signing on, and is intended to complement OceanScore's main software solutions.

Further, the new platform complements current marketing practises used by European Union (EU)-based biofuels suppliers and bunker trading firms in lieu of FuelEU Maritime, informs Albrecht Grell, Managing Director, OceanScore.

“EU-based biofuel companies are now employing two strategic options to convince a shipping company to buy biofuels,” he told Manifold Times in an interview.

“The first option is just good marketing, good product and good prices.

“The second option is a discount-based strategy targeting vessels that have defined and very reliable European trading patterns. This means that when the vessels burn biofuel, they create a lot of compliance surplus as the vessels are always in Europe.

“To these vessels, quite a few European bunkering companies are selling biofuels at a discount. In return, there is an agreement for the shipping company to include these vessels into a compliance pool managed by the bunkering firms, so that the latter can sell their customers’ compliance surplus to others.”

According to Grell, OceanScore's platform is simpler and more user-friendly compared to competitors. The platform does not require complex onboarding or KYC processes, making it accessible to a wider range of companies.

The firm does not tokenise compliance pooling, keeping the process straightforward. The platform is designed to be a meeting place for buyers and sellers, without unnecessary complications.

“How do we make money? We don't, frankly, with that platform, we don't make money because we make our business more on the general software that we sell towards managing FuelEU and EU ETS for shipping companies,” he said.

“Our main business is really our Compliance Manager that helps shipping companies run their commercial processes to manage EU ETS and FuelEU. This FuelEU Pooling Marketplace is just an add on service – but it benefits from the market leading position we have built in the EU ETS and FuelEU space with more than 1500 vessels using our platform.”

Moving forward, Grell addressed concerns about data security and privacy, especially for bunker trading firms using the platform.

He explained that the platform is an advertising platform, with only a sample of prices is visible to the public. Customers must go through OceanScore's authentication process to access the platform, and transactions are handled off-platform to maintain confidentiality and privacy.