Connect with us

FuelEU

OceanScore calculates EUR 175 mil potential costs for Greek shipping with FuelEU Maritime

Greek shipping companies are set to face a total bill of over EUR 175 million in penalties incurred under FuelEU Maritime but can also capitalise on the use of alternative bunker fuels, says firm.

Admin

Published

on

OceanScore calculates EUR 175 mil potential costs for Greek shipping with FuelEU Maritime

Greek shipping companies are set to face a total bill of over EUR 175 million in penalties incurred under FuelEU Maritime after it takes effect next year but can also capitalise on the use of alternative bunker fuels both to curb their financial exposure and generate compliance surpluses, according to Hamburg-based technology platform OceanScore on Tuesday (10 September). 

The maritime solutions and data firm has calculated the prospective FuelEU exposure for over 370 Greek-registered companies based on the average GHG intensity of their past voyages.

Based on these calculations, OceanScore has determined the crude tanker, RoPax, bulker and containership segments would be hardest hit, with tankers accounting for EUR 55 million (32%) and RoPax EUR 44m (25%) of potential penalties.

It has determined the top three shipping companies would be looking at a combined penalty of EUR 25m, with the largest company facing the highest overall penalty of EUR 11.75 million and an average per-vessel penalty of EUR 309,200, versus an average per-vessel penalty across all companies of EUR 84,200. The second and third largest players would each have total penalties of around EUR 6.5m.

Investments needed to offset compliance deficit

The overall Greek fleet of 2100 vessels would be left with a negative compliance balance, or deficit, of 71,666 tonnes of VLSFOe, according to OceanScore.

This is derived from a Greek fleet-wide average GHG intensity of 90.81g of CO2e per megajoule (MJ) of energy versus the initial FuelEU hurdle rate of 89.3g CO2e/MJ - a 2% reduction on the 2022 baseline of 91.16g CO2e/MJ that is the initial target from 2025-30 under the regulation.

However, OceanScore’s co-Managing Director Ralf Garrn, said: “This should only be considered the starting point for Greek shipping and not the final scenario as much will depend on how companies take advantage of biofuels, low-carbon technologies and the FuelEU pooling mechanism to minimise their exposure.

“Vessels with a very high penalty structure will also gain the greatest beneficial effects from fuel switching with biofuels to reduce their penalties and can even convert these into opportunities by creating compliance surpluses that can generate revenue through pooling.”

LNG well-positioned to benefit

He highlighted Greek LNG shipping operators as being especially well-positioned to capitalise on FuelEU due to a high compliance surplus that makes pooling opportunities attractive, given the use of LNG as fuel can cut emissions by around 25%. For example, two of the country’s largest LNG operators have respective surpluses of 82.1 tonnes and 45.2 tonnes of VLSFOe.

Garrn said the use of widely compatible biofuels probably represents the easiest option for most shipping companies to cut their carbon footprint in the short term. However, these are more expensive - at around EUR 1300 per tonne of VLSFOe - than fossil fuels, while they also have a lower calorific value so a higher volume is required.

He explained that switching to biofuels to curb CO2 emissions would result both in savings on the current FuelEU penalty of EUR 2400 per tonne of VLSFOe as well as reduced costs under the EU Emissions Trading System (EU ETS) due to the need to buy fewer EU Allowances (EUAs), or carbon credits.

OceanScore has calculated that Greek shipping presently has a requirement to purchase nearly 8.23m EUAs to meet its EU ETS liabilities, which would equate to EUR 543 million based on the current carbon price of EUR 66 per tonne of CO2.

High potential for cost savings

The company cites the example of a containership that could achieve a total net saving of EUR 1.3m versus the cost of paying FuelEU penalties by replacing HFO with rapeseed-based biofuel costing EUR 1200 per tonne. It estimates this would give a beneficial financial impact of EUR 241 per tonne in FuelEU penalty savings and EUR 55 per tonne in EU ETS savings.

Furthermore, this could generate a compliance surplus of 973 tonnes of VLSFOe by reducing GHG intensity to 82.44g CO2e/MJ, which could be pooled externally to earn EUR 2.3 million in revenue or used to offset 43,000 tonnes of under-compliance in the internal fleet. 

OceanScore has now launched its FuelEU Planner - the first in a suite of solutions set to be rolled out over the next year - that enables shipping companies to simulate different operational and investment scenarios to assess their commercial impact in relation to FuelEU compliance.

“This tool is designed to facilitate optimal decision-making by providing visibility on potential cost-saving opportunities as an alternative to simply paying penalties as we help the industry navigate the significant complexity of this regulation,” Garrn concluded. 

 

Photo credit: OceanScore
Published: 12 September, 2024

Continue Reading

FuelEU

Vitol to offer new FuelEU compliant co-processed VLSFO bunker fuel

New marine fuel offering is being produced by Vitol’s refinery in Fujairah – a 100kbd refinery producing finished grade bunker fuel – and will, in due course, be marketed in multiple locations by Vitol Bunkers.

Admin

Published

on

By

Vitol to offer new FuelEU compliant co-processed VLSFO bunker fuel

Vitol Bunkers on Monday (28 April) said it has launched a new FuelEU compliant co-processed VLSFO offering for marine customers, with Vitol’s tanker Elandra Falcon being the first vessel to bunker the fuel at Fujairah.

The marine fuel is being produced by Vitol’s refinery in Fujairah – a 100kbd refinery producing finished grade bunker fuel – and will, in due course, be marketed in multiple locations by Vitol Bunkers.

The co-processed fuel, which conforms to RMG380 VLSFO grade, is the same chemical composition and quality as conventional fuel, eliminating the need for additional permissions or special clauses in charter party agreements.

Co-processing enables a diverse range of sustainable feedstocks to be used in marine fuels, relieving competition with road transport, reducing pressure on crop-based feedstocks and increasing the viability of waste-based and advanced feedstocks.

The co-processing is certified under the ISCC-EU scheme. This certification requires stringent criteria to be met including an annual audit of the refinery and regular checks on product specification. 

The carbon intensity of the sustainable element of the fuel is in line with used cooking oil methyl ester (UCOME), and delivers a 70+% reduction in greenhouse gas intensity (GHGi) against the fossil-based alternative. 

Monitoring of lower GHG intensity fuels for compliance with FuelEU Maritime regulations is done in conjunction with DNV’s Emissions Connect product where co-processed and other sustainable fuels consumption is monitored for ultimate verification in 2026.

Helge Hermundsgård, Head of Sales for Emission Connect at DNV, said, “DNV is pleased to support Vitol in addressing the compliance challenges of FuelEU Maritime through our Emissions Connect solution.

“Purpose-built to meet the regulatory complexities and help customers reduce the associated business risks, Emissions Connect allows owners, managers and charterers to consistently monitor and manage their emissions data from voyage to fleet, easily integrate data streams from data providers and quickly generate and share the required emissions statements.

“This ensures that maritime stakeholders like Vitol can prepare with confidence for the regulatory demands and commercial opportunities ahead.”

Ian Butler, Head of Energy Transition for Shipping at Vitol said: “With the recent introduction of FuelEU Maritime, we are excited to expand our range of compliant fuels for customers, adding co-processed VLSFO to our current range of biofuel blends up to B100.

“As regulatory complexity increases, we continue to innovate – bringing products to market that help our customers comply in the most efficient and convenient way for them.”

 

Photo credit: Vitol
Published: 29 April, 2025

Continue Reading

FuelEU

FincoEnergies launches pooling service for FuelEU Maritime compliance

FuelEU Pooling service enables undercompliant vessels to meet their compliance targets by pooling with vessels running on GoodFuels sustainable bio bunker fuels.

Admin

Published

on

By

fincoenergies logo

GoodFuels biofuel supplier FincoEnergies on Wednesday (16 April) announced the launch of its FuelEU Pooling service, created to enable shipowners to meet FuelEU Maritime compliance in a cost-effective way.

FuelEU Maritime, effective from 1 January 2025, mandates the reduction of greenhouse gas intensity of energy used on board ships trading in the EU. For many operators, particularly those with limited access to low-carbon fuels, compliance can be both complex and costly.

Designed for shipowners, operators, charterers, and technical managers, FincoEnergies’ FuelEU Pooling service enables undercompliant vessels to meet their compliance targets by pooling with vessels running on GoodFuels sustainable biofuels, when these vessels are overcompliant and have ‘Surplus’ emission reduction available for allocation.

FincoEnergies also partnered with Lloyd’s Register (LR), who supported the development of the service. Their technical expertise has enabled shaping a solution that aligns with both regulatory requirements and FincoEnergies' established position as a biofuel supplier in the fuel supply chain.

“FuelEU Maritime represents one of the most important regulatory shifts for the shipping industry in decades,” said Alberto Perez, Global Head, Maritime Commercial Markets at LR. “By integrating technical expertise with strategic guidance, we ensure shipowners, operators, and suppliers not only comply with evolving emissions standards, but also proactively transform their operations, embracing new technologies and alternative fuels to ensure a sustainable and profitable future.”

“With a decade of experience in biofuel bunkers and carbon certificate trading in the voluntary market, we are excited to expand our creative and solution-oriented product portfolio with FuelEU Pooling,” said Johannes Schurmann, Commercial Director International Marine at FincoEnergies. 

“Thanks to our physical presence in the supply chain, shipping companies looking for FuelEU surplus can confidently rely on us as a trusted partner in their decarbonisation journey.”

Through its role as Pool Organiser, FincoEnergies streamlines the entire pooling process – from performing biofuel bunkers and prefinancing Surplus, to Surplus allocation and pool verification. With cost-effective pricing, FuelEU Pooling provides shipping companies with a competitive alternative for changing their fuel mix themselves.

 

Photo credit: FincoEnergies
Published: 21 April, 2025

Continue Reading

Decarbonisation

VPS: Turning shipping’s regulatory demands into operational and commercial advantages

Steve Bee and Emilian Buksak explore how the company can support the shipping industry in transforming challenges of environmental legislations into operational efficiencies and commercial benefits.

Admin

Published

on

By

RESIZED VPS logo

Steve Bee, Group Marketing and Strategic Projects Director, and Emilian Buksak, Decarbonisation Advisor of marine fuels testing company VPS, on Monday (7 April) explored how the company can support the shipping industry in transforming the challenges of environmental legislations into operational efficiencies and commercial benefits: 

As far back as 1981, long before the word “sustainable” was ever applied to the protection of the planet, VPS marine fuel quality testing (FQT) service was clearly focused on achieving a sustainable global shipping fleet. Even before the existence of any international marine fuel quality standard, VPS was testing fuel to ensure the protection of, vessel operations and engines, crew health & safety and the environment.

At present, global shipping is navigating its way on a voyage to decarbonisation and sustainability, with increasingly complex regulatory and legislative requirements being placed upon vessel owners and operators. In support of such requirements, digitalisation and the demand for immediate accurate data, along with the use of low-to-zero carbon fuels, are now necessities within shipping, as it strives to achieve numerous levels of compliance.

Today, VPS continues to provide market-leading testing and inspection services that support shipowners & operators to comply with and go beyond regulatory requirements, by extending the lifetime and usage of fuels and lube oils and indirectly that of the assets in which they’re employed. VPS testing and data solutions support vessel operators by providing comprehensive services that bridge the gap between complex regulations and practical, day-to-day operations.

Through fuel quality testing, VPS verifies a vessel’s fuel, be it fossil, bio-based or methanol, that it’s meeting current stringent specifications. By identifying quality issues early, operators avoid engine damage, unplanned downtime, and expensive retrofits. Even as new low-carbon fuels enter the market, VPS’s in-depth testing ensures every batch is “fit for purpose,” giving vessel operators confidence as these alternative fuels are being assessed. Through the test data generated VPS helps its customers gain the most value from their procured fuels.

Rigorous lubricant testing complements this, helping fine-tune equipment to maintain operational efficiency and reduce downtime. Additionally, VPS deploys emissions measurement equipment to gather accurate data crucial for both compliance reporting and operational insights.

Then, beyond testing and its associated data services, VPS offers decarbonisation software and advisory services spanning strategic decarbonisation planning, to vessel fuel performance optimization, including speed and power generation management, technical and operational efficiency initiatives, and even basic crew training. By pinpointing improvement areas across a vessel’s operating cycle, VPS helps reduce fuel consumption, lower emissions, and ultimately support operators’ transition to cleaner and more cost-effective operations.

11

But first let us look at the current legislative requirements and its challenges.

From the initial implementation of the International Maritime Organisation (IMO) MARPOL Annex VI, coming into force on 19th May 2005, shipping has witnessed numerous levels of legislation being introduced to which vessels must comply.

Decarbonisation targets, are driven in the main by the IMO and its initial strategy for a reduction in the carbon intensity of international shipping (to reduce CO2 emissions across international shipping, by at least 40% by 2030, pursuing efforts towards 70% by 2050, compared to 2008) and that total annual GHG emissions from international shipping should be reduced by at least 50% by 2050 compared to 2008.

In 2023, IMO introduced a revision to its decarbonisation strategy, stating the carbon intensity of ships needs to decline through further improvement of the energy efficiency of new ships. Also, the need to strengthen the energy efficiency design requirements for ships, leading to a reduction in the carbon intensity of ships, so supporting the reduction of CO2 emissions by at least 40% by 2030, compared to 2008. Also, the uptake of zero or near-zero GHG emission technologies, fuels and/or energy sources to increase and represent at least 5%, striving for 10%, of the energy used by international shipping by 2030 and GHG emissions from international shipping to reach net zero by or around 2050.

This strategy revision introduced Indicative Checkpoints, to monitor the progress of the reduction of the total annual GHG emissions from international shipping by at least 20%, striving for 30%, by 2030, compared to 2008 and the reduction of the total annual GHG emissions from international shipping by at least 70%, striving for 80%, by 2040, compared to 2008.

The IMO GHG strategy is supported by:

CII - Carbon Intensity Index, which determines the annual reduction factor needed to ensure continuous improvement of a ship's operational carbon intensity within a specific rating level. The ratings go from an inferior performance level – E, to the major superior level – A. Measuring the CO₂ emitted per cargo-carrying capacity per nautical mile, CII incorporates, speed optimization, biofouling management and alternative fuels usage.

Each year it becomes more difficult for a ship to improve its CII rating. But the best performing vessels are likely to trade at a premium.

22

Since 2024, the CII must be calculated and reported to the Data Collection System Verifier along with the previous year’s aggregated DCS data. This must include any correction factors or voyage adjustments. The deadline for DCS and CII submission is no later than 31 March each year.

The attained annual operational CII and the environmental rating (A to E) is noted on the DCS Statement of Compliance (SoC), which is required to be kept on board for five years.

In case of a D rating for three consecutive years or one E rating, the Ships Energy Efficiency Management Plan (SEEMP) Part III must be updated with a corrective action plan and verified before the SoC can be issued. The corrective action plan should consist of an analysis of why the required CII was not achieved and include a revised implementation plan.

It is worth noting at this point that the use of low-carbon fuels such as LNG, Bio-LNG, Biofuels and Methanol, offer immediate emissions reductions, which will significantly assist vessels improve their CII ratings and comply with the tightening regulations.

For over four years VPS have led the market in the understanding of marine biofuels and methanol. VPS laboratories have undertaken significant R&D work regarding innovative testing technologies and methods, to assist in improved fuel management and environmental compliance. Between 2021-2024 VPS tested samples equating to over 1.6million mt of delivered biofuels. This work has covered bio-components such as the most common FAME, plus HVO, Cashew Nut Shell Liquid (CNSL) and Tyre Pyrolysis Oil (TPO). Such experience and expertise are then passed on to VPS customers to enhance their understanding of such fuels and achieve the emissions reduction and efficiency improvements required.

33

Note: The full article by VPS can be read here.

 

Photo credit: VPS
Published: 8 April, 2025

Continue Reading
Advertisement
  • Aderco Manifold Website Advert EN
  • Consort advertisement v2
  • EMF banner 400x330 slogan
  • v4Helmsman Gif Banner 01
  • RE 05 Lighthouse GIF
  • SBF2
  • Sea Trader & Sea Splendor
  • Zhoushan Bunker

OUR INDUSTRY PARTNERS

  • HL 2022 adv v1
  • Singfar advertisement final
  • Triton Bunkering advertisement v2
  • MFT 25 01 E Marine Logo Animation
  • SEAOIL 3+5 GIF


  • Central Star logo
  • ElbOil logo
  • Mokara Final
  • Golden Island logo square
  • Auramarine 01
  • Energe Logo
  • CNC Logo Rev Manifold Times
  • PSP Marine logo
  • Synergy Asia Bunkering logo MT
  • Kenoil
  • Advert Shipping Manifold resized1
  • VPS 2021 advertisement
  • LabTechnic

Trending