Decarbonisation

Gasum: Shipping companies must be prepared for the tightening EU regulations

Gasum released an insight on the upcoming EU regulations including Fit for 55 regulatory package, FuelEU Maritime and EU Emission Trading System, while also touching on cleaner bunker fuels.

Published

2 years ago

November 16, 2023

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Gasum: Shipping companies must be prepared for the tightening EU regulations

Nordic energy company Gasum released an insight on the upcoming EU regulations including Fit for 55 regulatory package, FuelEU Maritime regulation and EU Emission Trading System (ETS) while also touching on cleaner bunker fuels:

Shipping companies must prepare for stricter EU regulations as the European Union tightens emissions rules for the maritime sector. New regulations and customer demands will drive the need for low-emission maritime fuels like renewable biogas and synthetic methane. Gasum stands ready to assist its customers in compliance and emissions reduction.

The European maritime industry faces significant changes impacting all companies operating in European waters. Under the EU’s Fit for 55 regulatory package, companies must reduce the greenhouse gas intensity of the energy used by vessels. In practice, this means companies need to buy low or zero emission fuels.

The forthcoming FuelEU Maritime regulation will mandate a 2% reduction from 2020 levels in fleet greenhouse gas emissions by 2030, escalating to 80% by 2050. Additionally, the EU Emission Trading System (ETS) will affect the maritime industry for the first time in 2024. Companies using fossil fuels will need to purchase and use EU ETS emission allowances for each tonne of reported CO2 emissions.

“The scale of change will be significant, with five directives tightening maritime emissions rules. Companies must assess their vessel operations and transition to low-emission fuels promptly. At Gasum, our mission is to ensure our customers’ long-term compliance with available low-emission fuel options, such as LNG, fully renewable biogas, or synthetic methane,” says Jani Arala, Gasum’s Head of Sustainable Logistics Solutions.

The demand for low-emission biofuels is set to increase

The demand for low-emission biofuels is set to rise due to these regulations, and Gasum is committed to meeting its customers’ needs. Gasum plans to introduce an additional 7 TWh of biogas by 2027, reducing emissions and addressing the growing demand for biofuels in the maritime sector.

Gasum is also actively participating in the emerging synthetic fuel market, aiming to provide more emission-free synthetic methane. Another potential synthetic fuel is green and e-methanol, but they face challenges in terms of vessel engines capable of utilizing methanol and the necessary bunkering infrastructure.

Electric engines are gaining traction for short-range travel, while long-haul electric shipping remains challenging due to, among other things, space requirements.

“In the long term, compliant cleaner maritime fuels like LNG, LBG, and synthetic methane are viable options due to availability and futureproofing. Dual-fuel engines allow ships to transition cost-effectively, and LNG dual fuel vessels can use all renewable and e-methane types as ‘drop-in’ fuels, with solid LNG vessel order books,” Jani Arala adds.

Portfolio management services bring competitive advantage when dealing with ETS

In 2024, the maritime industry faces a significant shift with the Emission Trading System (ETS), which mandates companies to purchase emission allowances for fossil fuels used. Unlike some sectors, the maritime industry does not receive free allowances.

The EU ETS will gradually impact shipping companies. In the first year, they must offset 40% of maritime emissions, with this requirement reaching 100% after three years in 2027.

For shipping companies relying on fossil fuels, this will lead to significantly higher costs, inevitably affecting customer prices. One option for shipping companies who participate in ETS is to outsource allowance purchasing or otherwise seek help from portfolio management services.

Gasum offers comprehensive portfolio management services related to EU ETS with capabilities of taking care of the whole process on customers’ behalf.

“Timely allowance purchases within the EU ETS can be a complex and dynamic endeavor, necessitating specialized knowledge. We have observed, alongside our clients, that outsourcing emission trading is often a cost-effective and practical choice. Gasum’s dedicated specialists monitor market conditions, ensuring our customers with predictability and transparency regarding allowance costs, risk reductions in price and volume risks, and ultimately lower costs and less stress,” Jani Arala explains.

Photo credit: Gasum
Published: 16 November, 2023

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Methanol

Chimbusco completes bunkering op of China’s first 16,000K TEU methanol DF boxship

“COSCO SHIPPING YANGPU” was supplied approximately 900 metric tonnes of methanol marine fuel by Chimbusco in Shanghai on 11 May.

Published

11 hours ago

May 23, 2025

Admin

Chimbusco completes bunkering of China’s first 16,000K TEU methanol DF boxship

China Marine Bunker (PetroChina) Co Ltd (Chimbusco) completed a bunkering operation of the first domestically manufactured methanol dual-fuel container ship in Shanghai on 11 May, according to COSCO Shipping on Thursday (15 May).

COSCO SHIPPING YANGPU was supplied approximately 900 metric tonnes (mt) of methanol marine fuel by Chimbusco at Pier 1 of COSCO Shipping Heavy Industry.

The operation started on 7 May but was postponed due to unfavourable weather from the Jianghuai Cyclone.

Chimbusco completes bunkering of China’s first 16,000K TEU methanol DF boxship

COSCO Shipping said the operation marked an important achievement in green and low-carbon transformation in shipping, from ship construction and ecological layout of the entire green fuel industry chain of the company.

Manifold Times previously reported the naming ceremony of China’s first 16,000 TEU methanol dual-fuel container ship, COSCO SHIPPING YANGPU in Yangzhou.

The methanol dual-fuel container ship named was the first in a series of vessels from COSCO Shipping Holdings, constructed by COSCO Shipping Heavy Industry Yangzhou.

Photo credit: Cosco Shipping
Published: 23 May, 2025

LNG Bunkering

Shell wraps up its first LNG bunkering operation for TUI Cruises in Barcelona

Milestone was achieved by Shell’s LNG bunker barge “Haugesund Knutsen” supplying the “Mein Schiff Relax” cruise ship at Port of Barcelona, says Dexter Belmar of Shell.

Published

11 hours ago

May 23, 2025

Admin

Shell wraps up its first LNG bunkering operation for TUI Cruises in Barcelona

Energy giant Shell recently conducted its first LNG bunkering operation for TUI Cruises in Barcelona, according to Dexter Belmar, General Manager and Head of Global Downstream LNG on Thursday (22 May).

He said the milestone was achieved by Shell’s LNG bunker barge Haugesund Knutsen supplying the Mein Schiff Relax cruise ship.

“Barcelona, one of Europe and the Mediterranean’s leading cruise ports, is also a key LNG bunkering location for Shell as we help more cruise ships transition to lower-emission fuels,” he said in a social media post.

“A huge thank you to Royal Caribbean Group for their trust, and to Knutsen and Port of Barcelona for their collaboration in making this bunkering safe and efficient.”

Shell wraps up its first LNG bunkering operation for TUI Cruises in Barcelona

Belmar said LNG is leading the way as the preferred alternative bunker fuel in the cruise industry.

“At Shell, we’re proud to support LNG fuelling needs at 26 locations worldwide, including major cruise ports like Bahamas, Barcelona, Canaveral, Everglades, Jamaica, Miami, Singapore, Southampton, and Tenerife,” he added.

Photo credit: Shell
Published: 23 May, 2025

LNG Bunkering

IGU report: Global LNG bunkering fleet grows to 56 operational vessels by 2024

LNG bunkering fleet is concentrated in Europe with the highest capacity of operational bunkering vessels, followed by Asia/Asia Pacific and North America, according to 2025 World LNG report by IGU.

Published

11 hours ago

May 23, 2025

Admin

IGU report: Global LNG bunkering fleet grows to 56 operational vessels by 2024

The global operational LNG bunkering and bunkering-capable small-scale vessel fleet reached 56 units at the end of December 2024 with further support from expanding infrastructure and regulatory drivers such as the IMO’s ban of heavy fuel oil in Arctic shipping and the EU’s FuelEU Maritime regulation.

This was nine more vessels than in 2023, with a total added capacity of 82,900 cubic metres (m3).

This was one of the major highlights in the 2025 World LNG report by the International Gas Union (ICU), which was launched at the 29th World Gas Conference (WGC2025) in Beijing on Thursday (22 May).

IGU report: Global LNG bunkering fleet grows to 56 operational vessels by 2024

The LNG bunkering fleet is concentrated in Europe with the highest capacity of operational bunkering vessels. This is followed by Asia/Asia Pacific and then North America, both of which have seen rapid expansions in the past five years.

As of the end of 2024, Europe has the highest bunkering capacity, with a total of 190,757 cm across 25 vessels currently in operation within the region.

Asia/Asia Pacific has the second-highest bunkering capacity, with a total of 179,700 m3 across 17 vessels in operation. From that, China currently has five operational LNG bunkering vessels while South Korea currently provides STS bunkering services with four bunkering vessels. Singapore currently has three bunkering vessels in operation.

North America continued its progress toward becoming a significant region in the LNG bunkering market in 2024, reaching a total capacity of 86,400 m3 across 10 operational vessels by year-end.

The report noted: “2024 was a significant year for LNG bunkering. Bunker users were quick to capture the reductions in both fuel costs and carbon emissions from using LNG, taking advantage of lower LNG prices relative to other marine fuels in 2024. Lower prices and an emerging LNG-fuelled fleet were catalysts in the large uptake in LNG bunker volumes.”

The Port of Singapore, which is the largest bunkering port in the world, recorded 463,900 tonnes of LNG bunkered in 2024, almost four times the 110,900 tonnes in 2023. The Port of Rotterdam, the second-largest bunkering port in the world, also recorded a 52% increase in bunkered LNG, from 620,000 cm in 2023 to 941,366 cm in 2024.”

IGU also said the newcomer in STS LNG bunkering is the Middle East with the LNG bunkering vessel Green Zeebrugge.

“The ship moved at the end of 2024 to Dubai and has performed the first ever LNG bunkering in the Middle East. This area is identified as a potential new LNG bunkering hub with Oman, the UAE, and Qatar as the main bunkering locations.”

Note: The ‘2025 World LNG Report’ can be downloaded here.

Photo credit: International Gas Union
Published: 23 May, 2025