New “FuelEU Maritime Calculator” Helps Shipping Companies Prepare for Regulation
PRESS RELEASE
Berlin, 20 March 2024 – zero44, a provider of digital solutions for managing CO2 emissions, has announced the release of its new “FuelEU Maritime Calculator”. This tool has been developed to assist shipping companies in understanding the financial implications of the upcoming FuelEU Maritime regulation on their operations. While the results provided by the calculator are estimates and not legally binding, they offer a valuable starting point for navigating the costs associated with compliance.
As shipping companies continue to work towards achieving compliance with the EU ETS regulations, the FuelEU Maritime legislation presents the next significant challenge in decarbonizing the industry. The primary focus of FuelEU Maritime is to promote the production of sustainable marine fuels and reduce the greenhouse gas intensity of vessels.
The regulation, set to take effect in January 2025, will establish a limit on the greenhouse gas intensity of vessels that is two percent lower than the 2020 reference level. Non-compliance with these intensity targets will result in hefty penalties for vessels. The targets will become more stringent every five years, ultimately aiming for an 80 percent reduction in greenhouse gas intensity by 2050. Additionally, there will be requirements for the use of onshore power supply and a mandate for a two percent share of e-fuels in a vessel’s fuel mix by 2030 and 2034, respectively.
FuelEU Maritime will cover 50 percent of the energy used for voyages to and from EU ports, as well as 100 percent of the energy used for voyages between EU ports for vessels over 5,000 gross tonnes. Unlike the EU ETS, FuelEU will account for emissions over the entire lifecycle of a fuel, rather than just tank-to-wake emissions.
To help companies understand the potential costs of FuelEU Maritime, zero44 has developed a free calculator that allows users to input a ship’s annual fuel consumption and regulatory exposure to calculate greenhouse gas intensity and expected penalties. While the tool’s calculations are estimates and may not account for all variables, it provides an initial assessment of the regulation’s impact. zero44 is also working on a more comprehensive software solution that will integrate voyage data to help shipping companies plan and predict greenhouse gas intensities under various scenarios.
Friederike Hesse, co-founder and Managing Director of zero44, emphasizes the importance of understanding the costs associated with FuelEU Maritime in order to prepare for compliance. The calculator aims to provide companies with a tangible understanding of the regulation’s implications and encourage closer examination of the topic within the industry.
