Classification society Lloyd’s Register (LR) recently released a new issue of Horizons featuring Andy Wibroe, LR Lead Regulatory Specialist, examining the key differences between FuelEU and the IMO’s Net-Zero Framework and breaking down the potential penalties under both regimes:

Draft regulations approved by the IMO at the recent Marine Environment Protection Committee (MEPC) 83rd session raise a question for the maritime sector – will there soon be two similar and overlapping sets of regulation: the International Maritime Organisation’s Net-Zero Framework (IMONZF), and the EU’s FuelEU Maritime (FuelEU)?

The simple answer is ‘Yes’, assuming the IMONZF enters force in 2027 and controls the greenhouse gas (GHG) intensity of international shipping’s energy use from 2028 and as it currently stands FuelEU will remain in force.

From that point, any ship of 5,000 GT or more (with certain exceptions) calling at EU ports will be regulated twice, to comply with both the IMONZF and FuelEU.

However, FuelEU has a potential self-destruct mechanism, which could revert two regimes back to one. Recital 69 and Article 30 of the FuelEU regulation state that a global approach by the IMO to limit GHG ship intensity would be preferable and more effective due to its broader scope.

Accordingly, the European Commission (EC) will, if the IMONZF is adopted, conduct a review and present a report to the European Parliament and to the Council of the EU as per FuelEU Article 30. However, the specifics of this remain unclear.

Inconsistent alignment

These regulations are similar in ambition and scope but there are also differences. The IMONZF lacks some of the detail of FuelEU, including establishing the GHG default emissions factors of different fuels.

FuelEU also mandates Onshore Power Supply (OPS) but this is not required under IMONZF. FuelEU further incentivises the uptake of Renewable Fuels of Non-Biological Origin (RFNBOs), and in the future may mandate a portion of energy use from these fuels, which IMONZF does not.

The IMONZF so far only has reduction targets confirmed through to 2035 with a line in the sand for 2040, while FuelEU has a known timetable to 2050. These points of difference may align as both regulations move to an implementation phase, but we don’t yet have that certainty. There are other inconsistencies, such as the use of prearranged pools to buy and sell surplus compliance under FuelEU, which are summarised in the box below.

Risks to regulatory harmony 

For the IMONZF to be effective it must be both comprehensive and enforceable.

While there is broad support for action under the IMONZF, can intention be turned into implementation? Everything remains speculative until there is final agreement. Delays in adoption will delay global decarbonisation measures.

If, once published, the guidance and methodologies underpinning the IMONZF diverge too much from FuelEU then this could present a problem to removing FuelEU.

Similarly, if FuelEU and the IMONZF do have to coexist, there may be some way to report both but only pay once and so avoid double payments, if not double monitoring.

Note: The full article by LR can be found here. 

Photo credit: Venti Views on Unsplash
Published: 7 July, 2025

Ordering of alternative-fueled vessels is continuing to grow in 2025, despite a slowdown in the overall newbuild market, classification society DNV said Tuesday (1 July). 

According to data from DNV’s Alternative Fuels Insight (AFI) platform, new orders for alternative-fueled vessels reached 19.8 million gross tonnes (GT) in the first six months of 2025, exceeding the 2024 figure by 78%. 

This marks a significant shift in capital allocation, as shipowners increasingly prioritize future-ready assets in response to regulatory pressure, fuel availability, and long-term decarbonization goals.

A total of 151 alternative-fueled vessels were ordered in the first half of 2025, slightly behind the 179 orders placed during the first six months of 2024. Even so, the overall GT has increased markedly, showing a 78% year-on-year growth driven mainly by activity in the container segment, but with notable orders also in the bulker, tanker and RoPax segments. 

This concentration suggests that some of the industry’s most commercially exposed and operationally complex segments are now leading the charge, reinforcing the view that alternative fuels are no longer a fringe strategy, but a mainstream investment decision.

Knut Ørbeck-Nilssen, CEO Maritime at DNV, said: “We’re seeing a broader shift take hold across the industry. The energy transition is no longer driven solely by first movers, it’s now being shaped by a second wave of shipowners who are integrating alternative fuels and technologies into their core strategies.

“Even in a slower newbuild market, fuel choices are diversifying, and decarbonization is becoming embedded in everyday decision-making. We expect that fuel choices and energy efficiency investments will accelerate as the regulatory framework becomes clearer over the next 4-10 months.”

LNG was the clear fuel of choice, accounting for 87 new vessels ordered, totaling 14.2 million GT so far in 2025. The fuel remains dominant in the container segment, with 13.6 million GT (81 vessels). Methanol has also shown strong momentum, with 4.6 million GT (40 vessels) ordered across the container, RoPax, tanker, offshore, and car carrier segments. 

Ammonia and hydrogen, while still niche, continue to register activity, suggesting early-stage confidence in their long-term potential. Three ammonia-fueled were added to the orderbook, primarily in the tanker and general cargo segments (37.000 GT total). Hydrogen made a return with four vessels (114.000 GT) currently on order.

Jason Stefanatos, Global Decarbonization Director at DNV, added: “The data reflects a sector that is actively recalibrating. We’re not seeing a slowdown in ambition, but rather a more measured approach to investment—one that balances optionality, compliance readiness, and long-term fuel strategy. 

“As shipowners weigh compliance strategies, the upcoming fuel intensity rules, which form part of the IMO’s Net-Zero Framework, are expected to accelerate this shift. We’re watching closely to see how this will be reflected in future ordering behavior, particularly as fuel availability and infrastructure evolve, and we get further regulatory clarity when IMO’s lifecycle assessment guidelines are decided.”

Supporting infrastructure is also evolving in parallel with vessel investments. In the first half of 2025, 13 LNG bunkering vessels were ordered, compared to 62 in operation globally, with February marking the strongest month for this segment with eight orders. This growth reflects a steady alignment between alternative-fuelled vessel orders and the supporting logistics required to scale their use, particularly for LNG, where bunkering capacity is becoming a critical enabler of continued adoption.

Photo credit: DNV
Published: 2 July, 2025

South Korean shipbuilding giant HD Hyundai on Thursday (19 June) said that its affiliates—HD Korea Shipbuilding & Offshore Engineering, HD Europe Research & Development Center, and HD Hydrogen— recently signed a Joint Development Project (JDP) agreement with classification society DNV, and German cruise operator TUI Cruises.

The project aims to explore the application of Solid Oxide Fuel Cell (SOFC) systems on cruise vessels.

SOFC is a high-efficiency fuel cell that generates electricity by reacting hydrogen—extracted from sources such as natural gas or ammonia—with oxygen. Since it produces electricity without combustion, it significantly reduces carbon and pollutant emissions. 

Compared to conventional engine-based power generation systems, SOFC offers superior efficiency, achieving both environmental sustainability and economic viability. It produces a low level of noise and vibration while providing high power generation efficiency, making it especially suitable for cruise ships that require large amounts of electricity.

HD Hyundai plans to secure global competitiveness by developing SOFC technology applicable to cruise ships, with a focus on the European market—where environmental regulations are stringent and demand for such vessels is high.

The market outlook is also promising. According to global market research firm Grand View Research, the global SOFC market is expected to grow at a compound annual growth rate (CAGR) of 40.7% through 2030, reaching approximately USD 7.12 billion (KRW 9.81 trillion), driven by increasing demand and investment in clean energy.

As a first step, HD Korea Shipbuilding & Offshore Engineering and the HD Europe Research & Development Center will establish safety design standards for applying SOFC systems to cruise ships over an eight-month period from June this year to February next year. 

HD Hydrogen, an affiliate of HD Korea Shipbuilding & Offshore Engineering specialising in hydrogen fuel cell technology, will analyse the performance of its proprietary SOFC systems under various operating conditions based on its core technical data.

In addition, HD Hyundai will develop technologies to recover and reuse waste heat generated by SOFC systems, which operate at high temperatures ranging from 600°C to 1,000°C. The company also plans to explore solutions to partially reduce carbon emissions from SOFC systems by leveraging carbon capture and storage (CCS) technologies.

As part of the project, DNV will support regulatory compliance and contribute to overall safety from the initial design onward. TUI Cruises will provide cruise ship specific data relevant to SOFC application, along with installation requirements and operational specifications necessary for actual deployment.

A representative from HD Hyundai stated, “This international joint development project marks a significant milestone in demonstrating HD Hyundai’s world-class decarbonization technology for ships in the European market. We hope to lead the maritime decarbonization initiative through our low-carbon, high-efficiency fuel cell technology.”

Meanwhile, HD Hyundai established HD Hydrogen last year as part of its effort to enter the hydrogen fuel cell market. The company is currently collaborating with various global shipping companies to expand the application of SOFC systems across multiple types of vessels.

Photo credit: HD Hyundai
Published: 23 June, 2025