Shipping firms should get ready for tougher EU rules as emissions regulations tighten. The changes will push for low-emission fuels like biogas and synthetic methane. Gasum is set to help customers meet these rules and cut emissions.
Maritime Emission Overhaul
The EU’s Fit for 55 mandates emissions reduction for vessels using low or zero-emission fuels. FuelEU Maritime regulation aims for a 2% reduction in fleet emissions by 2030, scaling up to 80% by 2050.
The EU Emission Trading System will affect the maritime industry in 2024, necessitating fossil fuel users to buy emission allowances. Gasum emphasizes swift vessel assessment and transition to low-emission fuels like LNG, renewable biogas, or synthetic methane for long-term compliance.
Biofuel Demand Rises
- Gasum gears up to meet rising biofuel demand, adding 7 TWh of biogas by 2027. They’re actively involved in synthetic methane to cater to emission-free needs.
- Green and e-methanol pose challenges, including engine adaptability and bunkering infrastructure.
- Electric engines gain ground for short-range travel, but long-haul electric shipping faces space constraints and other hurdles.
“In the long term, compliant cleaner maritime fuels like LNG, LBG, and synthetic methane are viable options due to availability and futureproofing. Dual-fuel engines allow ships to transition cost-effectively, and LNG dual-fuel vessels can use all renewable and e-methane types as ‘drop-in’ fuels, with solid LNG vessel order books,” Jani Arala adds.
ETS Impact
The Emission Trading System in 2024 mandates maritime companies to buy emission allowances for fossil fuels used, unlike some other sectors. Starting at 40%, companies must offset increasing percentages of emissions, reaching 100% by 2027.
This shift will drive up costs, affecting customer prices. For companies in the ETS, options include outsourcing allowance purchasing or seeking portfolio management services. Gasum provides comprehensive portfolio management for EU ETS, handling the process on behalf of customers.
“Timely allowance purchases within the EU ETS can be a complex and dynamic endeavour, necessitating specialized knowledge. We have observed, alongside our clients, that outsourcing emission trading is often a cost-effective and practical choice. Gasum’s dedicated specialists monitor market conditions, ensuring our customers with predictability and transparency regarding allowance costs, risk reductions in price and volume risks, and ultimately lower costs and less stress,” Jani Arala explains.
Did you subscribe to our daily newsletter?
It’s Free! Click here to Subscribe!
Source: Gasum
