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KPI OceanConnect on FuelEU Maritime: Turning regulation into a strategic opportunity

‘Companies should not view compliance as a checkbox exercise, but rather as a key component of broader risk management and an opportunity to gain competitive advantage,’ says Jesper Sørensen.

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Jesper Sørensen, Global Head of Alternative Fuels and Carbon Markets at KPI OceanConnect

Jesper Sørensen, Global Head of Alternative Fuels and Carbon Markets at KPI OceanConnect, shared with Singapore-based bunkering publication Manifold Times the effects FuelEU Maritime will have on the biofuel market in 2025 and that companies should view compliance as an opportunity to gain competitive advantage: 

Change is the only constant in shipping’s regulatory landscape. With new environmental rules stacking up, operators face growing pressure to adapt. Alongside the International Maritime Organization’s (IMO) decarbonisation strategy, the EU has introduced two major regulatory frameworks, FuelEU Maritime and the EU Emissions Trading System (EU ETS), that are set to reshape shipping operations in the years ahead.

Of these, FuelEU Maritime is the most direct in regulating the carbon intensity of fuels used on voyages to and from EU ports. It mandates a phased reduction in emissions over time, starting with a 2% cut in 2025 (against a 2018 baseline), but escalating to 6% by 2030, 14.5% by 2035, 31% in 2040, and 62% by 2045, before reaching 80% in 2050. The first verification deadline is due in early 2026, meaning companies need to act now to build robust compliance strategies.

How can biofuels support shipping’s decarbonisation?

Biofuels have emerged as a near-term solution for meeting FuelEU Maritime’s requirements. Recent projections suggest that demand for B100 biofuel could reach up to 700,000 tonnes in 2025 alone, as operators try to meet the 2% reduction mandate.

Biofuels, such as hydrotreated vegetable oil (HVO) and fatty acid methyl esters (FAME), are not the only compliance route under FuelEU, but they offer a practical starting point for many shipowners. Unlike LNG, methanol and ammonia, most biofuels can be dropped-in or used in existing engines with minimal modification, either in blended form or as B100. They also have a role as pilot fuels for other low-carbon alternatives.

Yet biofuels are not a silver bullet. Supply is still highly concentrated in key hubs like Rotterdam and Singapore, and availability is often determined by local feedstock sources.

A recent IEA report forecast that by 2030, aviation and shipping alone will account for over 75% of new biofuel demand, pushing consumption up by 30%. In the race for biofuel uptake, shipping will also face stiff competition for supply, especially from aviation and road transport, which often demand higher quality fuels and can absorb higher costs.

This creates a potential “biofuel crunch” for the maritime sector. To maintain access and cost competitiveness, shipping must begin investing in the development of alternative or advanced feedstocks, those that offer higher greenhouse gas (GHG) savings and can be refined to standards suitable for marine use. These alternatives could ensure ongoing supply, but they also raise questions about fuel quality, certification, and sustainability claims.

Sustainability declarations that verify feedstock origin and track the full chain of custody will become central to ensuring compliance. Shipowners will need to collaborate closely with trusted suppliers to mitigate the growing risks of fuel fraud, poor quality and reputational damage.

A well-to-wake lifecycle approach to emissions accounting is essential for accurately assessing the true carbon impact of marine fuels. First-generation feedstocks, which often fail to meet the necessary sustainability thresholds, are not compatible with this methodology and are increasingly being phased out of the biofuel value chain.

Certification systems can play a vital role in this transition by verifying sustainability declarations and ensuring compliance with rigorous traceability standards, to help confirm that biomass and bioenergy originate from responsible sources. This is crucial not only for meeting regulatory requirements, but also for protecting ecosystems, preserving biodiversity and supporting local communities.

As regulations become more stringent, counterparty risk assessments will grow in importance. Choosing the right suppliers and engaging with them early is vital. Those who can provide assurance on fuel provenance, compliance with FuelEU Maritime, and support with documentation will become indispensable partners.

Shipowners should also look to providers who can offer tailored fuel blends and bunker solutions that align with their compliance strategies. Flexibility, transparency and collaboration across the supply chain will all play a role in de-risking the energy transition.

Looking beyond FuelEU Maritime to understand the full regulatory picture

While FuelEU Maritime represents a major step forward in shipping’s decarbonisation, it is part of a wider wave of regulation transforming shipping’s environmental responsibilities. The EU’s inclusion of maritime under the Emissions Trading System (EU ETS) in 2024, for example, introduced direct carbon pricing. Similarly,  the IMO’s recent decision at MEPC 83 in April 2025 to move ahead with its Net-zero Framework makes it the first in the world to combine mandatory emissions limits and GHG pricing across an entire industry. These global measures will apply beyond EU waters, increasing the need for worldwide infrastructure to support alternative fuel uptake and enforce consistent standards.

Together, these developments underline the growing value of timely planning and strategic partnerships to maintain control over cost and carbon performance. Companies should not view compliance as a checkbox exercise, but rather as a key component of broader risk management and an opportunity to gain competitive advantage. It requires more than access to fuel and more than just access to fuel suppliers; it requires partnerships with integrated fuel partners who can align procurement, emissions strategy and risk management under an overarching fuel procurement and compliance strategy.

In the case of EU ETS, for example, operators must be prepared to surrender allowances (EUAs) for 2024 emissions by the 30 September 2025 deadline. A well-executed EUA strategy can minimise exposure to carbon price volatility and align closely with FuelEU Maritime compliance goals as well. Biofuels for instance offer significant cost reductions for complying with FuelEU Maritime and reducing EU ETS liabilities, but operators need to consider how their vessel routes match fuel availability to realise these benefits.

Regulatory momentum is only set to build in the coming years and long-term compliance strategies will require a multi-fuel approach, combining biofuels, LNG, methanol and ammonia, as well as energy efficiency technologies and operational measures. But shipping does not need to navigate this journey alone.

We can look to other industries, such as aviation, chemicals, and agriculture, where low-carbon fuels are already widely used. Shipping can tap into this knowledge, forging cross-sector partnerships to accelerate innovation, reduce costs and avoid pitfalls. These sectors offer valuable insights into infrastructure, handling and safety, lessons that the maritime world can adopt and adapt.

Regulations like FuelEU Maritime mark a critical turning point in shipping’s decarbonisation journey. While compliance is mandatory, it also offers an opportunity for transformation. By acting early, embracing innovation and building trusted partnerships across sectors, the maritime industry can lay the groundwork for scalable, secure, and sustainable solutions.

 

Photo credit: KPI OceanConnect
Published: 4 September, 2025

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Alternative Fuels

Yang Ming orders six LNG dual-fuel, ammonia-ready containerships from Hanwha Ocean

Each of the six new vessels will have a capacity of up to 13,650 TEU and feature LNG dual-fuel propulsion and Ammonia Fuel Ready specifications.

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Yang Ming orders six LNG dual-fuel, ammonia-ready containerships from Hanwha Ocean

Taiwanese shipping firm Yang Ming Marine Transport Corporation (Yang Ming) and South Korean shipbuilder Hanwha Ocean on Wednesday (2 September) signed a shipbuilding contract for six 13,000 TEU class LNG dual-fuel container vessels. 

The contract was signed by Dr. Chuck Tsai, Chairman of Yang Ming, and Mr. Charles Kim, CEO of Hanwha Ocean. The vessels are scheduled for delivery between 2028 and 2029. 

They will complement Yang Ming’s existing fleet of 10,000+ TEU vessels and serve as key vessels on East-West services, with deployment flexibility across trade lanes connecting Asia with the East and West Coasts of North America, South America, and the Mediterranean. 

Each of the six new vessels will have a capacity of up to 13,650 TEU and feature LNG dual-fuel propulsion and Ammonia Fuel Ready specifications.

“As Yang Ming transitions toward net-zero emissions, LNG provides a relatively mature and economically viable alternative fuel solution, capable of reducing greenhouse gas emissions by approximately 20%,” the company said. 

“At the same time, ammonia can serve as a carbon-free fuel by utilising converted LNG storage facilities, while offering relatively lower conversion costs and comparatively well-developed supply chains and infrastructure. The Ammonia Fuel Ready design will therefore provide Yang Ming with greater flexibility in responding to increasingly stringent international regulations on greenhouse gas emissions.”

In addition, the vessels will be equipped with Type B LNG fuel tanks with a design pressure of 1.0 bar to enhance the safety and efficiency of LNG operations, together with a range of energy-saving technologies, including Wind Shields, Rudder Bulbs, Pre-Swirl Stators, and Shore Power Systems. Smart ship technologies and cybersecurity protection features will also be incorporated to enhance operational efficiency, safety, and reliability while effectively reducing fuel consumption and greenhouse gas emissions.

Deliveries under Yang Ming’s next-generation fleet optimization plan commenced earlier this year. By 2030, a total of 24 new vessels are expected to enter service. 

This includes 18 LNG dual-fuel vessels—comprising five 15,500 TEU, seven 16,000 TEU, and the six 13,000 TEU vessels under this contract—alongside six 8,000 TEU methanol dual-fuel-ready ships. 

 

Photo credit: Yang Ming Marine Transport
Published: 4 September, 2026

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LR, China’s MARIC unveil tanker concept ready for three future bunker fuels

Both secured AiP for a new 114,000 DWT product and crude oil tanker designed to accommodate future conversion to LNG, methanol or ammonia.

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LR, China’s MARIC unveil tanker concept ready for three future bunker fuels

Lloyd’s Register (LR) and the Marine Design and Research Institute of China (MARIC) on Thursday (3 September) have secured Approval in Principle (AiP) for a new 114,000 DWT product and crude oil tanker designed to accommodate future conversion to LNG, methanol or ammonia.

Announced at SMM 2026, the concept addresses one of the biggest investment challenges facing shipping today: the need to develop vessels and capabilities that can support a range of alternative fuel options and pathways as technologies, infrastructure and regulations evolve.

While LNG is already a mature fuel pathway, methanol and ammonia remain at an earlier stage of development, with questions around global fuel availability, infrastructure development, economics and long-term adoption.

The 114,000 DWT tanker concept has been designed as a product and crude oil carrier that can accommodate future conversion to LNG, methanol or ammonia as technologies, regulations and fuel supply chains mature. By incorporating conversion readiness at the design stage, the concept aims to reduce future retrofit complexity and provide owners with greater confidence when planning long-term fleet investments.

The design concept was reviewed against LR’s July 2026 class rules and regulations, including requirements relating to ships using gases and other low-flashpoint fuels, alongside relevant IACS Common Structural Rules for oil tankers. Final classification and statutory approval remain subject to full compliance with all applicable rules and regulations.

Theo Kourmpelis, Global Business Director for Tankers, Lloyd’s Register, said: “Shipowners are being asked to make major investment decisions today despite continued uncertainty around which fuels will dominate in the decades ahead. Alternative fuel solutions each offer potential pathways to compliance, but fuel infrastructure, regulation and economics continue to evolve at different speeds around the world.

“Designs that preserve flexibility will be critical in helping owners manage risk while preparing for multiple future scenarios.”

Si Nan, Marine & Offshore Marketing Department Vice Director, MARIC, said: “As the industry explores different decarbonisation pathways, shipowners need vessel designs that can adapt alongside technological and regulatory developments. This concept was developed specifically to provide greater fuel flexibility and long-term resilience, allowing owners to respond to changing market requirements without being locked into a single fuel strategy.

“Receiving Approval in Principle from Lloyd’s Register is an important milestone that validates the design concept and supports its future development.”

 

Photo credit: Lloyd’s Register
Published: 4 September, 2026

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DNV: Alternative-fuelled vessel orders hit highest monthly level since October 2024

LNG-fuelled vessels accounted for the vast majority of August activity while the strong summer performance marked a significant acceleration in ordering activity after a relatively slow start to the year.

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DNV: Alternative-fuelled vessel orders hit highest monthly level since October 2024

Latest data from classification society DNV’s Alternative Fuels Insight (AFI) platform alternative-fuelled vessel ordering was strong in August, with 52 new vessels added to the platform.

This is the highest monthly total since October 2024 and follows another active month in July, when 47 vessels were added to the database.

LNG-fuelled vessels accounted for the vast majority of August activity, with 46 orders recorded. The container segment led the way with 30 orders, while the car carrier segment contributed a further 12 LNG-fuelled vessels. In addition, four ethanol-fuelled bulk carriers and two hydrogen-powered bulk carriers were added during the month, as well as one LNG bunker vessel.

The strong summer performance marked a significant acceleration in ordering activity after a relatively slow start to the year. In total, 242 alternative-fuelled vessel orders have been placed in the first eight months of 2026, representing a 27% increase compared with the same period in 2025.

LNG remains the dominant fuel choice, accounting for 63% of all alternative-fuelled vessel orders registered so far this year. Container vessels represent the largest share of these LNG orders (59%), followed by car carriers (30%).

Jason Stefanatos, Global Decarbonization Director at DNV Maritime, said: “The past two months have been particularly strong for alternative-fuelled vessel ordering, with August recording the highest monthly total we’ve seen since October 2024. This has helped lift year-to-date orders to a level well above the same period last year.

“LNG remains the leading fuel choice, driven largely by activity in the container and car carrier segments. These sectors have been among the earliest adopters of alternative fuels, supported by predictable liner operations and increasing demand from cargo owners to reduce emissions across supply chains. 

“For many owners, LNG offers a combination of emissions reductions, fuel availability and future flexibility while the longer-term fuel landscape continues to evolve. 

“At the same time, the latest figures include orders for ethanol- and hydrogen-fuelled vessels, highlighting that owners continue to explore a range of decarbonization pathways. Different segments are making different fuel choices, but the overall level of activity demonstrates continued investment in lower-emission shipping.”

Screenshot 2026 09 04 at 12.29.26 PM Screenshot 2026 09 04 at 12.29.36 PM

 

Photo credit: DNV
Published: 4 September, 2026

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