MI, SEA-LNG Express Concern Over EU Biomethane Trade Regulation

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  • MI and SEA-LNG have expressed their concerns following the announcement by the EU Commission impacting the trade of biomethane and biomethane-based biofuels.
  • MI and SEA-LNG call for the recognition of biomethane and biomethanol-based fuels produced using a mass balance chain of custody from non-EU gas grids under the UDB.

The Methanol Institute (MI) and SEA-LNG have expressed their concerns following the recent announcement by the EU Commission impacting the trade of biomethane and biomethane-based biofuels such as biomethanol, reports Safety4sea.

MI and SEA-LNG call for the recognition of biomethane and biomethanol-based fuels

The EU Commission has noted the intention to exclude the automatic certification of biomethane and biomethanol-based fuels produced through mass balance chain of custody in third-party countries outside the EU gas grids within the Union Database (UDB), an IT system to trace the sustainability and origin of renewable fuels place into service in the European market.

According to MI, this exclusion will severely limit the use of these critical fuels in decarbonizing intra-European and international maritime transport even if these fuels were produced in accordance with EU regulations under the Renewable Energy Directive (RED).

Methanol Institute and SEA-LNG are particularly concerned about the potential impacts of these measures on competitiveness and international trade dynamics. “If this materializes, it will create a trade barrier that threatens to impede the importation of biomethane and biomethanol into the European Union, limiting the availability and increasing the costs of these fuels to the bunkering industry in Europe,” said the organizations in a joint statement.

Furthermore, it may also disqualify such fuels produced using a mass balance chain of custody from non-EU gas grids, when bunkered in non-European ports for use by vessels calling at European ports from being recognized under the Renewable Energy Directive (RED). Consequently, these fuels may not be able to generate credits under EU ETS and FuelEU Maritime, the organizations noted.

In response to these challenges, MI and SEA-LNG call for the recognition of biomethane and biomethanol-based fuels produced using a mass balance chain of custody from non-EU gas grids under the UDB.

We propose an urgent meeting between our representatives and those of the European Commission to discuss necessary amendments to ensure a sustainable and competitive energy future for the European maritime sector,” noted MI and SEA-LNG.

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Source: Safety4sea