New research from Ahti Climate has revealed the scale of FuelEU Maritime optimisation available through pooling and the use of appropriate low-carbon fuels. The organisation has calculated that the use of one e-methanol vessel on voyages within the European Union’s waters could make seventy vessels using HFO compliant.

By comparison, under the FuelEU Maritime regulations, an LNG vessel with a low-speed engine could only be used to make five HFO-fuelled ships compliant. Moreover, by adding 1-1.5 per cent e-methanol and pooling, you can make your operational fuel costs cheaper under FuelEU Maritime than burning straight HFO and paying penalties.

Ahti has further calculated that FuelEU Maritime will grow the alternative fuel market value in European shipping to greater than the fossil fuel market value by 2040.

Afti developed tools to manage Ahti Pool, the world’s first FuelEU Maritime compliance pool. The Ahti Calculator contains data for all relevant alternative fuels for shipping verified against the regulation parameters and calculation methodology.

Also read: ‘R&D and innovation key to achieve FuelEU Maritime objectives’

FuelEU Maritime

FuelEU Maritime will come into force in 250 days on 1 January 2025, and the regulations are part of the European Union’s “Fit For 55” package. It aims to enable the EU to reduce its net greenhouse gas emissions by at least 55 per cent by 2030 compared to 1990 levels, and to achieve climate neutrality by 2050.

FuelEU Maritime will require all ships entering EU waters to comply with new carbon intensity limits on vessel emissions. One of the primary aims is to increase the demand for, and consistent use of renewable and low-carbon fuels. The rewards for doing so can be considerable – if they are effectively chosen and implemented systematically.

Market impacts

What is pooling about
What is pooling about?

There has been criticism in some quarters about the financial viability of ships powered by low-carbon fuels because they are going to be at least three to six times more expensive than traditional bunkers. However, this ignores the additional benefits, which can be achieved under FuelEU Maritime through pooling compliance within a fleet that’s using an optimised mix of low-carbon and traditional bunkers on different vessels, states Ahti.

The sustainability value obtained from using low-carbon fuels is not limited to the year in which it occurs. Any compliance surplus can be “banked” for following FuelEU Maritime reporting periods. By pooling you also avoid the need to run frequent calculations to assess carbon intensities for each fuel’s unique feedstock, and you’ll escape the time-consuming scenario planning necessary for each possible variation of a vessel’s energy sourcing strategy and execution.

For shipowners who are concerned about ordering the wrong future-fuelled newbuilds, pooling and the use of appropriate low-carbon fuels on their vessels provides them with substantially increased time to analyse the results of first movers, and to make better informed investments.

Risto-Juhani Kariranta, CEO of Ahti: ‘We are a on a mission to make shipping’s green transition affordable, and one of the best ways to do that for ships that are visiting and operating within European Union waters is via pooling and choosing the optimal low-carbon fuels.’

Also read: ‘New marine fuels can reach cost parity with fossil fuels by 2035’

1.3% e-methanol to be compliant

‘Ahti Pool combines expert geographical knowledge, the latest optimisation algorithms, and unique energy data sets to find the lowest cost of compliance for vessels and avoid implementing a “paying the penalties” strategy,’ states Kariranta.

He adds: ‘For example, thanks to our Ahti Pool calculator we have determined that through the ultra-low carbon intensity possible with e-fuels and the renewable fuels of nonbiological origin (RFNBO) multiplier, in 2025 only 1.3 per cent of a ship’s total energy would need to come from e-methanol to be compliant, and for biodiesel it would be 3.1 per cent. The rest of your bunkers could be HFO, and you’d suffer no penalty under FuelEU Maritime.’

‘Companies that fail to optimise their vessel operations in response to FuelEU Maritime will find their overheads quickly become a competitive handcuff,’ concludes Kariranta.

Pictures by Ahti Climate.

Also read: EU shipowners welcome production benchmark for clean fuels