Strategies for Cost-Effective FuelEU Compliance by 2025

The upcoming FuelEU Maritime regulation, effective from January 1, 2025, poses challenges for vessel owners in terms of regulatory understanding and compliance costs. Despite the expected high costs of compliance, a new white paper from DNV, a classification society, suggests that implementing certain strategies and measures can help significantly reduce these expenses. The regulation mandates strict greenhouse gas emission intensity requirements for ships over 5,000 gross tonnage transporting cargo or passengers in the European Union/European Economic Area, focusing on well-to-wake emissions calculations and crediting wind-assisted propulsion.

As the enforcement date of the FuelEU Maritime rules approaches, DNV has released a white paper titled “FuelEU Maritime – Requirements, compliance strategies, and commercial impacts” to guide shipowners on meeting the regulations. The paper outlines compliance strategies and requirements, offering insights on how to minimize costs and avoid penalties. It includes a case study of an 80,000 dwt bulk carrier operating in EU waters, showcasing various compliance strategies such as using energy-efficient measures, blending biofuels, employing shore power, and utilizing wind-assisted propulsion.

According to the analysis presented in the white paper, choosing the most cost-effective compliance strategy could result in substantial savings over a vessel’s lifetime. Options like paying penalties were found to be the most expensive, while using LNG and bio-LNG emerged as the least costly compliance strategy due to their lower GHG intensity. The report also recommends shipowners to start preparing for FuelEU Maritime, secure long-term fuel agreements, implement energy-efficient measures, and incorporate FuelEU provisions in contractual terms. Additionally, it highlights the impending regulations from the International Maritime Organization, with a net-zero framework expected to be adopted by mid-2027.

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