Classification society DNV on Thursday (5 December) said compliance with FuelEU Maritime requirements will be expensive but applying certain strategies can significantly reduce the cost.

This was one of the main highlights of its latest white paper outlining FuelEU Maritime requirements and compliance strategies for shipowners. 

Effective from 1 January 2025, the rules mandate stringent greenhouse gas (GHG) emission intensity requirements for ships over 5,000 gross tonnage (GT) transporting cargo or passengers for commercial purposes in the EU/ EEA. GHG emissions are calculated from a well-to-wake perspective. In addition to emissions from onboard combustion, this calculation also includes emissions related to the extraction, cultivation, production, and transport of the fuel. 

The regulation includes provisions for crediting ships using wind-assisted propulsion.

The DNV paper provides shipowners with insights to reduce compliance expenses and avoid major penalties. It contains a comprehensive overview of the regulation, including a case study which highlights a range of different compliance strategies. 

This shows how the adoption of the most cost-effective strategy can result in savings of up to 16% or USD 21 million over a vessel’s lifetime compared to using Bio-MGO as a compliance option.

Knut Ørbeck-Nilssen, DNV Maritime CEO, said: “It is essential that shipowners understand the requirements and compliance options related to the FuelEU Maritime regulation to make informed business decisions. Adopting a cost-efficient strategy with the right combination of measures can help shipowners reach compliance at reduced costs.

“Just paying the penalty could prove a more costly option. All parties must understand their potential obligations and privileges, and how these might affect their commercial and compliance agreements. Crucial to this is verified emissions data, which can maintain operational and commercial integrity across the maritime value chain.”

The report provides recommendations for shipowners including securing long-term fuel agreements and implementing energy efficiency measures. It also recommends considering pooling as a mechanism for sharing and optimizing costs. This is underpinned by a call to begin preparations immediately. The report also highlights how, by leveraging digital tools, maritime stakeholders can access verified emissions data, a key factor in compliance and maintaining both operational and commercial integrity throughout the value chain.

A key point emphasized in the report is that the International Maritime Organization is also set to introduce similar regulations in the near future, with a net-zero framework expected to be adopted in the fall of 2025 and come into force around mid-2027.

It is absolutely essential that shipowners understand the requirements and compliance options related to the FuelEU Maritime regulation so that they are equipped to make informed business decisions. Adopting a cost-efficient strategy with the right combination of measures can help shipowners reach compliance and significantly reduce costs.

“Doing nothing and paying the penalty could prove to be a costly option. All parties must understand their potential obligations and privileges, and how these might affect their commercial and compliance agreements. Crucial to this is verified emissions data, which can maintain operational and commercial integrity across the maritime value chain.”

The report provides recommendations for shipowners including securing long-term fuel agreements and implementing energy efficiency measures. It also recommends considering pooling as a mechanism for sharing and optimizing costs. This is underpinned by a call to begin preparations immediately. The report also highlights how, by leveraging digital tools, maritime stakeholders can access verified emissions data, a key factor in compliance and maintaining both operational and commercial integrity throughout the value chain.

A key point emphasized in the report is that the International Maritime Organization is also set to introduce similar regulations in the near future, with a net-zero framework expected to be adopted in the second half of 2025 and come into force around mid-2027.

Note: The full whitepaper titled ‘FuelEU Maritime: Requirements, compliance strategies, and commercial impacts’ by DNV can be downloaded here.

Photo credit: DNV
Published: 6 December, 2024

The DNV-led Nordic Roadmap project has unveiled the Fuel Transition Roadmap for Nordic Shipping, a comprehensive document outlining a decarbonization strategy for the region.

According to the classification society, the report urged Nordic ministers to take immediate action to support the industry in achieving its goals by closing the cost gap associated with the fuel transition. 

Its findings and recommendations were officially presented to Nordic ministers today at a High-Level Conference on Green Shipping in the Nordic Region, held in Copenhagen.

Alongside their commitment to global maritime emission reduction targets set by the IMO, the Nordic countries have also pledged to meet ambitious regional climate targets for shipping. 

These include early commitments to net-zero emissions by 2050, advancing a sustainable ocean economy and green transition, cooperation on transport, infrastructure and energy supply, and the establishment of green shipping corridors.

To decarbonize, shipping will need to switch to zero-emission fuels and the Roadmap strategy identified three main barriers to their uptake in the region:

• Demand and costs – linked to the lack of demand for zero-emission shipping and cost-competitiveness of zero-emission fuels. 
• Fuel availability – referring to the lack of onshore development of the supply chain, including fuel production and sourcing of raw materials, distribution, and bunkering infrastructure. 
• Technology and safety – referring to the low maturity level of fuel technologies and safety regulations, both onshore and onboard vessels.

The report goes on to outline seven building blocks, broken down further into 20 specific actions to be taken towards 2030, to overcome the interlinked barriers. These represent specific work packages that governments and industry stakeholders must collaborate and work on in parallel to upscale the use of zero-emission fuels. 

The key recommendations of the Roadmap highlight the urgent need for government action to bridge the cost gap for zero-emission fuels and to accelerate the implementation of competitive tenders for green shipping corridors. The strategy envisions the first corridor becoming operational by 2025, followed by three more by 2026, and an additional six by the end of 2028. An immediate priority is to develop a plan for the regional integration of fuel production and infrastructure. 

Ms. Ida Heimann Larsen, Deputy Secretary General of the Nordic Council of Ministers, said: “The Nordic Council of Ministers is proud to have helped bring about this comprehensive and ambitious public-private cooperation.”

“And we will continue to support the advancement of the 7 key building blocks of the Road Map as part of a wider, cross-sectoral focus on the green transition of our blue economy. These are important stepping stones on our path towards making the Nordic region the most sustainable in the world.”

Knut Ørbeck-Nilssen, CEO Maritime, DNV, said: “We call on Nordic governments to act swiftly on the urgent measures identified in the Fuel Transition Roadmap for Nordic Shipping. Doing so will give the industry confidence to invest in ships capable of running on zero-emission fuels, and the fuel infrastructure needed to support them.”

“Cross border and value chain collaboration will be crucial in enabling the industry to overcome key barriers and to meet the ambitious decarbonization targets. By leading the way, the Nordics can not only drive value creation and boost exports but can also play a key role in the global fuel transition.”

Bjarne Foldager, Senior Vice President and Head of Two-Stroke Business, Denmark, MAN Energy Solutions, said: “This Roadmap is a worthy initiative and, in tandem with other global decarbonisation efforts, represents a concrete way for Nordic shipping to collaborate and push decarbonisation through – among other parameters – the adoption of zero-emission fuels and green corridors.”

“At MAN Energy Solutions, we welcome the opportunity to work with like-minded partners and are more than happy to bring our expertise within marine propulsion and alternative fuels to the table in the pursuit of net zero.”

The Roadmap is developed by the project team led by DNV with members from MAN Energy Solutions, IVL Swedish Environmental Research Institute, Chalmers University of Technology, Menon Economics, and Litehauz, and in collaboration with more than 60 industry partners.

The Nordic Roadmap project started in 2022 and is funded by the Nordic Council of Ministers. It aims to reduce key barriers to the uptake of zero-emission fuels and develop a common roadmap for the whole Nordic region towards zero-emission shipping.

Note: The full strategy can be read here.

Photo credit: DNV
Published: 5 December, 2024

Bureau Veritas Marine & Offshore (BV) on Tuesday (3 December) announced the classification of three new LNG bunker vessels, including one 18,600 cubic metre (m3) vessel for Ibaizabal at Hudong Zhonghua and two 18,000 m3 vessels for Hercules Shipping, shipping arm of Peninsula at Hyundai Mipo Dockyard, which will be delivered from 2026. 

“The vessels further BV’s collaboration with world-leading shipbuilders, charterers and yards on major LNG projects, supporting the maritime industry as it transitions to the use of more sustainable fuels,” it said on its website. 

The new vessels join a list of 18 BV-classed LNG bunkering vessels in service, with four more scheduled for delivery in 2025 and 2026. They add to the important supply of LNG as fuel and help ensure shipbuilders and operators remain compliant and on course to meet global emissions targets. 

BV has now classified around 35% of the world’s bunkering ships in service and approximately 50% of the order book to date.

While LNG remains an essential part of the current maritime energy landscape, methanol and ammonia are increasingly viewed as a fuel that could accelerate decarbonisation efforts. BV is already leveraging its expertise in LNG to facilitate the industry's shift to other clean fuels, exploring how lessons from LNG can be applied to methanol and ammonia’s production, transport, and eventual use as a maritime fuel. 

Bureau Veritas has supported developments that will pave the way for the broader uptake of ammonia as a fuel on land and at sea. It recently granted an Approval in Principle (AiP) to Dalian Shipbuilding for its liquid ammonia bunkering vessel design and partnered with Hanwha Ocean and Naftomar on a joint development project to develop large ammonia carriers with an ammonia fuel-prepared design. 

On methanol projects, BV is also actively involved in a selected class of several bunkering tankers in Europe and Singapore and numerous methanol fuel projects, mainly in chemical tankers and container ships.

Photo credit: Peninsula and Ibaizabal
Published: 5 December, 2024