A large-scale agreement for mass-balanced biomethane allows Swedish tanker owner Furetank to make an immediate transition to renewable operations. At the same time, the company is launching a subsidiary for trading emission reductions under FuelEU Maritime.
A new contract for mass-balanced biomethane will cover all gas-propelled vessels wholly or partly owned by Furetank and trading in the EU during 2025. This enables the company to operate its fleet largely fossil-free, after years of limited availability of large-scale biogas volumes. Most vessels have already been bunkered, marking an immediate transition.
‘This was our target when we converted our first vessel to gas propulsion in 2015,’ says Viktoria Höglund, Sustainability Strategist at Furetank. ‘It is remarkable that we have finally reached the point we have worked for and talked about for so long, with partners who can deliver the volumes and quality needed.’
Also read: Furetank and Wärtsilä can halve methane slip
Biomethane from waste
The purchased biomethane provides a 150–200 per cent reduction in greenhouse gas emissions on a well-to-wake basis. This is possible because biomethane is produced from, for example, manure and this both reduces and captures emissions in several stages. It prevents methane from being released into the atmosphere during natural decomposition of waste, while also replacing fossil fuels in vessel operations. In addition, residues from the biogas process return carbon to the soil as organic fertiliser, replacing synthetic fertilisers.
The contract is supported by the FuelEU Maritime regulation, which now recognises mass-balanced biogas in the same way as green electricity in power grids. Cargill produces the biomethane, with Titan Clean Fuels handling liquefaction and delivery.
‘What makes this agreement stand out is its scale. Furetank has secured significant volumes, becoming one of the first movers in this market. The FuelEU legislation is set to drive meaningful change, and we are only seeing the beginning of LBM in shipping as one of the most accessible compliance solutions for shipping, requiring no engine modifications in LNG-fuelled vessels,’states Willem Olde Kalter, responsible for Biogas and FuelEU at Cargill.
HVO as pilot fuel
A small share of vessel operations, about ten per cent of total fuel consumption, cannot be powered by biomethane. Part of this is the small amount of pilot fuel injected into the gas engine to initiate combustion, traditionally marine gas oil. Furetank is now conducting its first trial replacing this with HVO100 renewable diesel, supplied by ScanOcean. This means that the vessel Fure Valö arrived to the Donsö Shipping Meet on September 1st in a completely fossil-free manner.
The last part of propulsion involves operating the energy-intensive cargo pumps, which can now be operated via shore power connection on all Furetank vessels concerned; provided that ports offer the possibility.
Also read: How ICODOS turns sewage biogas into a marine fuel
Emissions trading company
Alongside the fuel deal, Furetank has launched a new subsidiary, CO₂mpliance, to facilitate emissions trading within the FuelEU framework. The regulation allows operators to trade surplus reductions, rewarding companies that go beyond compliance and penalising those that fall short.
Thanks to the company’s Vinga series of in-house designed dual-fuel tankers, powered by liquefied methane, the transition to biofuel can be made without delay or technical modification. ‘This lets us move far ahead of EU requirements and trade the surplus,’ explains Höglund, who also serves as CEO of CO₂mpliance.
The new company will manage FuelEU compliance for other operators, enabling both sellers of surplus credits and buyers facing shortfalls to participate. Furetank frames the move as a continuation of its strategy of staying ahead of environmental regulation, from ordering double-hulled tankers before they were mandatory to adopting LNG propulsion early.
Picture: Furetank tanker vessel with gas tank on deck (photo by Furetank).
Also read: Aurora Botnia to sail carbon-neutrally in Baltic Sea
