zero44, provider of digital CO2 management solutions, has today released its “FuelEU Maritime Calculator”.
zero44 has developed this tool to enable shipping companies to quickly and easily understand the financial impact that the planned FuelEU Maritime regulation will have on their business. The results are estimates and not binding, but provide a good initial basis for dealing with the costs and cost factors of FuelEU Maritime.
While the majority of shipping companies are still working on becoming EU ETS compliant, the next comprehensive legislation to decarbonise shipping is already on the horizon: FuelEU Maritime.
Aimed at kick-starting the large-scale production of sustainable marine fuels, FuelEU Maritime’s main focus is decreasing vessels’ yearly average greenhouse gas (GHG) intensity. This is the amount of greenhouse gasses that are being emitted for every MJ of energy that is used onboard a vessel. The regulation will enter into force in January 2025, dictating a GHG intensity limit that is two percent lower than the 2020 reference. This means that many vessels, when continuing business as usual, will face hefty non-compliance penalties immediately from the start of the regulation. GHG intensity targets will get stricter every five years, all the way to an 80 percent decrease in GHG intensity from 2050 on. In addition, a mandate for the use of onshore power supply and a sub-target for a two percent share of e-fuels in a vessel’s fuel mix will apply from 2030 and 2034 respectively.
The scope of FuelEU is similar to that of EU ETS, covering 50 percent of the energy used on voyages arriving at or departing from EU ports, and 100 percent of the energy used on voyages between EU ports for vessels larger than 5,000 gross tonnes. One of the main differences is that FuelEU covers the emissions over a fuel’s entire lifecycle (from well to wake), instead of only tank-to-wake emissions.
Simple calculation of FuelEU Maritime costs
There is already a lot of information available on FuelEU Maritime, but it is mostly of a technical, regulatory or scientific nature. In contrast, it has been difficult for companies to get a concrete idea of how FuelEU Maritime will affect their business.
That’s why zero44 has developed the FuelEU Maritime calculator and is making it available to all interested parties free of charge. Users simply enter the annual fuel consumption (divided into HFO, LFO, MDO/MGO, LNG and biodiesel) of a ship and its exposure to EU regulation. The tool then calculates the resulting greenhouse gas intensity and the penalties to be expected.
The tool’s calculations are estimates and do not take into account all individual parameters (such as the specific type of biodiesel used or a ship’s engine type and the resulting amount of slipped emissions). As the calculator is aimed at providing shipping companies insight into today’s situation, it currently covers only conventional fuels and biodiesel. The results are therefore primarily intended as an initial assessment of the impact of regulation, not as a final decision-making aid for companies. zero44 is currently working on a software solution that integrates with voyage data and can be used to plan and predict GHG intensities under different scenarios, monitor intensities over voyages and time periods, and align the different maritime stakeholders.
“In order to be able to adapt to FuelEU Maritime, companies first need to understand what costs they can expect,” says Friederike Hesse, co-founder and Managing Director of zero44. “Our tool makes concrete what was previously abstract. We hope it will give as many companies as possible an initial incentive and a basis to take a closer look at the topic.”
