- DNV’s white paper examines compliance strategies for FuelEU Maritime GHG regulations.
- Strategies like using bio-LNG or LNG combined with early banking offer significant cost savings compared to penalties or higher-GHG fuels like bio-MGO.
- Energy-efficiency measures and leveraging FuelEU flexibility mechanisms.
FuelEU Maritime regulations aim to lower GHG intensity for vessels operating in EU and EEA waters. DNV’s new white paper explores compliance strategies through a case study of an 80,000 dwt bulk carrier, analyzing costs and operational impacts over two decades.
FuelEU Maritime Regulations and Compliance Scope
Targets well-to-wake GHG emissions for ships above 5,000 GT in the EU/EEA.
Includes banking, borrowing, and pooling mechanisms for flexibility in compliance.
DNV Case Study: A Practical Analysis
The case study investigates compliance options for an 80,000 dwt bulk carrier from 2025–2044.
Strategies compared include paying penalties, using low-GHG fuels, and leveraging flexibility mechanisms.
Strategy 1: Financial Penalties for Non-Compliance
Continuing with marine gas oil (MGO) and paying penalties incurs the highest costs at USD 230 million over 20 years.
Costs surge post-2035 due to stricter GHG regulations.
Strategy 2: Transitioning to Low-GHG Fuels
Bio-MGO Blending: Achieves compliance but raises costs to USD 130 million.
Bio-LNG and LNG: Most cost-effective, with a lifetime cost of USD 120 million, offering early-year surpluses.
E-Methanol and Blue Ammonia: Ensure compliance but costlier (USD 170 million and USD 150 million, respectively).
Strategy 3: Energy-Efficiency Measures
Technologies like wind-assisted propulsion systems (WAPS) reduce lifetime costs by USD 7 million compared to the bio-MGO strategy.
Shore power integration lowers GHG intensity and fuel expenses in early years.
Strategy 4: Leveraging Flexibility Mechanisms
Banking Surpluses: LNG-fuelled vessels bank early-year credits to offset future deficits.
Borrowing Compliance Balances: Temporarily offsets deficits with interest/penalties applied.
Pooling Mechanisms: Allows green-fuel vessels (e.g., e-methanol) to trade surplus compliance within a fleet.
Economic and Environmental Insights
Bio-LNG offers up to USD 21 million in savings over bio-MGO due to early reliance on fossil LNG.
Penalty-driven strategies remain the most expensive.
Input assumptions (fuel prices, availability, GHG intensity) strongly influence outcomes.
Strategic Recommendations for Operators
- Optimize Fleet Characteristics: Select compliance strategies based on vessel specifications and fuel availability.
- Adopt Energy-Efficiency Measures: Integrate solutions like WAPS to improve feasibility and lower costs.
- Leverage Flexibility Mechanisms: Pooling and banking enhance economic and operational resilience.
- Plan Proactively: Align strategies with evolving regulations and commercial conditions.
Did you subscribe to our daily Newsletter?
It’s Free Click here to Subscribe!
Source: DNV
