Decarbonisation

Gard on FuelEU: Monitoring plans must be ready in August

FuelEU Maritime will come into effect from 1 January 2025, but monitoring plans for vessels already calling at European ports must be submitted by 31 August 2024, says Gard.

Published

8 months ago

June 4, 2024

Admin

Maritime protection and indemnity (P&I) club Gard on Monday (3 June) published an insight to remind companies calling at European ports to get ready before the end of the summer.

FuelEU Maritime will come into effect from 1 January 2025, but monitoring plans for vessels already calling at European ports must be submitted by 31 August 2024:

The purpose of the FuelEU Maritime(FuelEU) is to stimulate shipping’s uptake of renewable and low-carbon fuels to reduce greenhouse gas (GHG) emissions. Vessels trading within or calling at the EU/EEA, regardless of their flag, will have to comply with the GHG emission limits of the energy used onboard. Further details about the regulation can be found in our introductory article.

Whilst vessels over 5,000 GT have had to submit Monitoring Reporting Verification (MRV) data since 2018, the FuelEU Monitoring Plan is separate to this. Vessels cannot rely upon existing MRV monitoring plans.

Instead, a new Monitoring Plan is required, although aspects of the existing MRV plan can be used.

Who needs to comply?

The company responsible for compliance with FuelEU (the company) is always the ISM company, i.e. the Document of Compliance (DoC) holder, irrespective of whether the DoC holder is the registered owner, a bareboat charterer, or a third-party technical ship manager. As the majority of owners delegate ISM Code responsibilities, in reality the responsible entity is likely to be the technical manager.

This contrasts with the EU ETS, where the responsible company may be the owner or the DoC Holder. As such, the responsible shipping company may differ for the EU ETS and FuelEU. The company must register with an Administering Authority, which is fortunately the same entity as that for EU ETS compliance.

In cases of compliance deficit and FuelEU penalties, the entity responsible for purchasing the fuel or for taking operational decisions that affect the vessel’s GHG emissions could be required to reimburse the ISM company for these penalties.

What does this mean in practice?

Companies will need to submit a separate FuelEU Monitoring Plan for each of their vessels. The EU Commission has produced a draft template Monitoring Plan, which has recently been subject to public consultation. The standardised template was expected to be published in the first quarter of 2024. According to the European Commission’s website, the template is currently “in preparation”, along with the technical rules for the template’s uniform application.

Monitoring Plans, which can be amended for the particular vessel, are available from classification societies and other third parties accredited by the European Maritime Safety Agency. Some verifiers provide this in an online form format.

Monitoring Plans cannot be submitted to classification societies/accredited third parties for verification until the official EU template standard Monitoring Plan and supporting documentation have been published. This is scheduled for the end of June 2024. Companies will then have July and August to submit their Monitoring Plans to their chosen verifier.

For vessels falling under the scope of the Regulation for the first time after 31 August 2024, companies should submit a Monitoring Plan to the verifier no later than two months after each vessel’s first call at a EU/EEA port.

Well-to-wake GHG emissions

FuelEU is based on a Well-to-Wake approach to the GHG emissions of the energy used onboard a vessel. This means that the emissions in producing and transporting the fuel to the bunker tanks are taken into account, as well as the emissions when the fuel is burned.

Compliance in the first instance requires the use of certified biofuels, LNG, LPG, auxiliary power units (fuel cells), shore power, wind-assisted propulsion, or a combination of these. As zero or near-zero emission fuels (e-methanol, e-ammonia, e-hydrogen) are more widely available, these will enable compliance as the FuelEU GHG limits further reduce from 2030.

The purpose of the Monitoring Plan is to monitor, record and report data about the types and quantities of fuel or other sources of energy used onboard and the GHG emissions associated with them.

Key elements of the revised Monitoring Plan

Vessels trading in the EU/EEA countries should have the approved FuelEU Maritime Monitoring Plan on board before 1 January 2025. Once the Monitoring Plan is finalised, the verifier should record it in the FuelEU database. The Monitoring Plan should be accessible to the Administering State.

The FuelEU Monitoring Plan is detailed and must include the following key elements, amongst other information:

Emissions sources are to be listed and described, such as main engines, auxiliary engines, fuel cells, and waste incinerators.

Fuel types are also to be listed and described, for example: ‘H2 (Fossil)’, ‘NH3 (Fossil), ‘Methanol (Fossil)’, ‘Ethanol’, ‘Bio-diesel’, ‘Hydrotreated Vegetable Oil (HVO)’, ‘e-diesel’, ‘e-methanol’, ‘e-LNG’, ‘e-H2’, and ‘e-NH3’. Where there is fuel blending, each component of the blended fuel must be considered as a separate fuel.

The emission factor to be applied to each fuel type applicable over the reporting period must be identified.

A description of the relevant procedures to update emissions sources, fuel types, fuel consumption and activity data per voyage (such as distance travelled, cargo carried, time spent at sea).

A description of the control system to be put in place, which should include written procedures for data flow activities, risk assessment, and control activities.

Procedures for monitoring the fuel consumption of each fuel type as well as the energy provided by substitute sources or a zero-emission technology. A description of the procedures for monitoring and reporting the well-to-tank and tank-to-wake emission factors of energy to be used on board.

Photo credit: Guillaume Périgois on Unsplash
Published: 4 June 2024

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Japan: MOL’s third LNG-fuelled ferry “Sunflower Kamuy” starts operation in Oarai

“Sunflower Kamuy” will serve the Oarai-Tomakomai route between Ibaraki Prefecture and Hokkaido as a replacement for the Sunflower Daisetsu, says MOL.

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Japan: MOL third LNG-fuelled ferry “Sunflower Kamuy” starts operation in Oarai

Mitsui O.S.K. Lines (MOL) on Thursday (23 January) announced that the LNG-fuelled ferry Sunflower Kamuy, owned by MOL and operated by its group company MOL Sunflower, entered service in Oarai.

The vessel will be the third LNG-fuelled ferry operated by MOL Sunflower, following the Sunflower Kurenai and Sunflower Murasaki, which have been in service on the Osaka-Beppu route from 2023.

Sunflower Kamuy will serve the Oarai-Tomakomai route between Ibaraki Prefecture and Hokkaido as a replacement for the Sunflower Daisetsu.

Along with the sister vessel Sunflower Pirka, scheduled to enter service in early summer 2025, MOL Sunflower will operate a fleet of four LNG-fuelled ferries on the Oarai-Tomakomai route and the Osaka-Beppu route within 2025.

MOL Sunflower operates 10 ferries and 4 RoRo vessels on six routes throughout Japan, from Hokkaido to Kyushu, providing service for both logistics and passengers in Japan.

Photo credit: Mitsui O.S.K. Lines
Published: 24 January, 2025

LNG Bunkering

SEA-LNG report: Number of LNG-fuelled vessels in operation up by over 33% in 2024

Based on its latest ‘View from the Bridge’ report, SEA-LNG reported an annual vessel growth of over 33% to 638 LNG-fuelled vessels in operation worldwide in 2024.

Published

22 hours ago

January 24, 2025

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SEA-LNG report: Number of LNG-fuelled vessels in operation up by over 33% in 2024

Industry coalition SEA-LNG on Thursday (24 January) reported an annual vessel growth of over 33% to 638 LNG-fuelled vessels in operation worldwide in 2024.

This was one of the findings of SEA-LNG’s annual ‘View from the Bridge’ report, highlighting 2024 as another year of growth for the LNG pathway.

Analysing data from SEA-LNG members, the report found that global market adoption and growth reached record heights in 2024.

Looking forward, over 1,200 vessels are expected to be operating by the end of 2028. In 2024, LNG dual-fuelled vessels accounted for 70% of alternative fuelled tonnage ordered, excluding LNG Carriers, up from 43% in 2023.

This record expansion follows the growing availability of LNG bunker fuel beyond the traditional bunkering hubs. Currently, LNG bunkers are accessible in approximately 198 ports worldwide, and plans are underway for bunkering facilities in an additional 78 ports. This comes as over 60 LNG bunkering vessels are operating today, marking a 22% increase from 2023.

The ‘View from the Bridge’ report also highlights how the LNG pathway took a significant step in 2024, with liquified biomethane delivering on decarbonisation and regular renewable e-methane supplies expected in 2026.

SEA-LNG members are prepared to offer biomethane bunkers in some 70 ports globally, with multiple bunkering operations already taking place.

A highlight was the successful biomethane bunkering pilot as part of the Methane Track within the Rotterdam-Singapore Green and Digital Shipping Corridor (GDSC). This was the first practical delivery of any international Green Corridor since they were announced as part of the Clydebank Declaration at COP 26 in Glasgow.

Peter Keller, chairman of SEA-LNG, said: “Our latest View from the Bridge reaffirms the importance of the LNG pathway as a practical and realistic route to shipping’s decarbonisation now. We continue to believe that the shipping industry is heading towards a successful multi-fuel future where LNG will always play a critical role.”

“To deliver net zero by 2050 across the global shipping fleet, a basket of fuels is required and the LNG pathway will continue to lead the way. This is not a case of my fuel versus your fuel but rather which fuel best allows the industry to reach its stated goals. The LNG pathway provides the path to net zero.”

SEA-LNG’s latest report also highlights that 2024 has seen considerable progress in addressing methane slip. “Advances in eliminating methane slip, in combination with biomethane and e-methane, provide a clear, effective, and viable long-term pathway towards net zero emissions. Shipowners and operators can be confident that the vessels ordered today are future-proofed for their lifespan.”

“With a proven track record of technical improvements to reduce methane slip and upstream emissions, coupled with tighter regulations from global and regional authorities, we continue to believe methane slip will be a non-issue by the end of this decade,” Keller continued.

FuelEU Maritime will be a key regulation in advancing shipping industry decarbonisation, heading into 2025. According to analysis from SEA-LNG, FuelEU Maritime creates a favourable environment for the LNG pathway.

With the ability to achieve GHG emissions reductions of up to 23%, LNG-fuelled vessels are compliant until 2039. The use of liquefied biomethane and e-methane can extend compliance through to 2050 and beyond.

Note: The full report is available for download here.

Photo credit: SEA-LNG
Published: 24 January, 2025

Alternative Fuels

DNV, partners to develop new standards for using digital twins to test electric propulsion systems

Collaboration with HD Hyundai Mipo and HD KSOE focuses on developing standards for testing electric powered vessels through the use of digital twin-based criteria and procedures.

Published

23 hours ago

January 24, 2025

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DNV, partners to develop new standards for using digital twins to test electric propulsion systems

Classification society DNV on Friday (24 January) signed a Memorandum of Understanding (MoU) with HD Hyundai Mipo (HMD) and HD Korea Shipbuilding & Offshore Engineering (KSOE).

The collaboration focuses on developing standards for testing electric powered vessels through the use of digital twin-based criteria and procedures, to enhance ship safety and efficiency.

The project aims to resolve issues related to the integration of highly complex vessel systems for electric propulsion.

Utilising hardware in the loop (HiL) testing via digital twins of the different systems enables integration tests to be performed both earlier in the process on a much broader and deeper level.

To ensure the accuracy of the tests, however, we need to be confident in the digital assets. Together DNV, HMD and KSOE are working on the verification of these digital assets. Utilising DNV verified digital assets, will facilitate the integration process. In addition, when systems from multiple suppliers are tested together, having the same requirements and HiL test procedures ensures the reliability of the testing.

Kitae Kim, Head of Quality Management, HD Hyundai Mipo, said: “Through this technical collaboration we aim to establish clear and practical digital twin-based testing procedures and standards. These can foster broader industry participation and ensure the reliability of results. In doing so, we hope to safeguard the performance and safety of ship systems and lead in building a digital twin ecosystem for the shipbuilding industry.”

Byoung Hun Kwon, Head of the Electrification Center/Digital Technology Research Lab, at HD KSOE, said: “We have proactively developed and implemented digital twin technology, including HiL, to safeguard the performance and quality of vessels, achieving world-class advancements in virtual commissioning technology. This collaboration marks a pivotal milestone, uniting HD Hyundai Mipo, HD KSOE, and DNV to drive digital innovation in the shipbuilding and marine industry.”

Andreas Kristoffersen, Head of Approval Centre Korea and DNV Maritime, said: "This MoU highlights HMD, KSOE and DNV’s commitment to driving digitalization in the maritime industry. By adopting digital twin-based testing for complex systems, we are working together to shape the future of maritime operations and set new industry standards for safety and performance."

The project will also focus on maintaining the digital assets throughout the life-cycle of the vessel to maximize their value over the long-term. With verified assets, component models could also be used in a “plug-and-play” manner as different systems are introduced into the simulation space or updated over time.

This initiative sets out to build a foundation for leveraging class-verified digital assets to support more comprehensive and earlier HiL testing. It aligns with DNV’s Data-driven Verification (DDV) notation, which has been developed to ensure reliable performance of complex systems.

Photo credit: DNV
Published: 24 January, 2025