RE: Cop 2916 Nov 2024 18:00
Https://www.ajot.com/news/decoding-alternative-fuels-oceanscore-supports-tricky-bunker-selection-process-under-fueleu-maritime
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Decoding alternative fuels: OceanScore supports tricky bunker selection process under FuelEU Maritime
| Nov 14 2024 at 01:40 PM | Maritime
Switching fuels is the most frequently discussed pathway to meeting the requirements of FuelEU Maritime. But the choices shipping companies make about bunkers will significantly impact compliance costs. Companies must navigate a complex fuel market and assess the viability of different options based on commercial, technical, and operational factors, according to maritime data and technology firm OceanScore.
“Fuel selection is the most important lever under FuelEU,” says OceanScore Managing Director Albrecht Grell. “Your choice of fuel can either create a surplus or a deficit in your compliance balance, directly affecting your costs.”
Grell adds: “Choosing the right fuel can help avoid penalties and even create revenue by pooling surpluses. But not all alternative fuels are the same, and their viability often depends on future pooling prices, which are hard to predict.”
Shipping companies face challenging bunkering choices to secure compliance under FuelEU. Photo: Shutterstock
Fuel pathways
FuelEU charts a course for reducing emissions in shipping, with a target near net-zero by 2050. For now, two main options are available to meet the GHG threshold of 89.3gCO2e/MJ until 2029:
LNG and LPG: These fuels, when used in dual-fuel engines, will meet the rules and can generate surplus compliance balances. However, their benefits will decline until 2040 as limits tighten.
Biofuels: These are a good option for most vessels. They are usually used in blends (eg. B20-B30) with conventional fuels. These blends will be compliant until 2040; higher blends or pure biofuels will be needed thereafter.
Different rules for biofuels
One issue is that EU ETS and FuelEU Maritime treat biofuels differently. Under EU ETS, biofuels are considered zero-emission, meaning companies don’t need to buy carbon credits. But under FuelEU, the rules are stricter.
“FuelEU doesn’t count all biofuels equally,” Grell explains. “Fuels made from food or feed crops are treated like conventional fuels in terms of emissions. Only waste-based biofuels are fully compliant, and even then, their specific GHG values are above zero.”
This difference matters. Standard biofuels, such as those from rapeseed or sunflower seeds, still benefit from ETS discounts but fall short under FuelEU. For full compliance, waste-based biofuels are needed, such as those from used cooking oil or animal fat. Further complications are added when considering the different rules behind the 50% discounts applied to voyages to and from the EU under the two regulations.
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