INTERVIEW: Baseblue Sees 'Mixed Level of Readiness' for FuelEU Maritime

Gregoris Gregoriou is chief commercial officer at Baseblue. Image Credit: Gregoris Gregoriou / LinkedIn

Marine fuel supplier and trading firm Baseblue sees room for improvement in the shipping industry's compliance plans for the FuelEU Maritime regulation that came into force at the start of the year.

The FuelEU regulation was imposed on shipping in Europe from January 1, mandating steadily reduced carbon intensity over the coming years. For 2025 the industry needs to deliver a 2% cut in its carbon intensity, with biofuels likely to play a large role in delivering this.

Not all shipping companies have yet reached full preparedness for complying with the regulation, Gregoris Gregoriou, chief commercial officer at Baseblue, said in an interview with Ship & Bunker.

"We observe a mixed level of readiness across the shipping industry for FuelEU," he said.

"While some forward-thinking players have embraced alternative fuels and sustainable solutions, others still need to grapple with the operational and logistical challenges of compliance.

"The complexity of managing fuel procurement, emissions tracking, and compliance reporting can be overwhelming without the right tools; this is where Fuelink, our advanced fuel management platform, comes in.

"Fuelink centralises and simplifies bunker data, compliance tracking, and cost optimisation, giving shipowners, operators and charterers the clarity and confidence they need to prepare for FuelEU."

Room for Improvement

The firm sees readiness for FuelEU at a less advanced stage away from the largest hubs, and for tramp shipping in general.

"Geographical and segment-specific disparities exist," Gregoriou said.

"While regions like Northern Europe and parts of Asia have advanced infrastructure and resources for alternative fuels, smaller or developing ports still need to improve in offering sustainable fuel options.

"Similarly, irregular segments like tramp shipping often need to catch up to structured liner shipping due to the unpredictable nature of their operations. To bridge these gaps, Baseblue leverages solutions like Fuelink, which provides real-time insights into fuel availability, emissions data, and compliance requirements globally."

The firm launched the Fuelink bunker data management and fuel supply optimisation platform in March of last year. Users can identify the best ports for bunkering, ensure compliance, and streamline their operations through the platform.

Non-Compliance

Not everyone in European shipping will end up in full compliance with FuelEU by the end of this year, either accidentally or as a deliberate strategy.

Those that fail to comply will face fines, as well as potential port call bans in Europe and the reputational risk of being named as being non-compliant.

"While the exact percentage is hard to predict, we estimate that a small but notable number of shipowners may face fines initially," Gregoriou said.

"This will likely result from accidental non-compliance due to mismanagement of emissions data, inadequate fuel availability, or operational delays.

"To minimise these risks, Baseblue offers tools like Fuelink, which helps shipowners, as well as characters and operators, stay compliant by tracking emissions and regulatory requirements in real time."

Alternative Fuels

The most obvious beneficiary from the regulation will be those supplying biofuel bunker blends, which can be used as a drop-in alternative to conventional bunkers without the need for significant modifications to existing ships. 

Towards the end of 2024, Singapore was already seeing a rise in biofuel sales as shipping companies prepared for compliance in the new year.

"We anticipate a significant increase in biofuel demand, especially in Europe, where the FuelEU regulations have the greatest impact," Gregoriou said.

"Biofuels provide a drop-in solution for compliance, making them a practical choice for shipowners. The uptake of biofuels has already begun in key markets, but we expect a sharp rise in the first half of the new year as shipowners finalise their strategies."

The firm also expects increasing interest in other alternative fuels as the regulation incentivises their use, although this will be a longer-term trend.

"In addition to biofuels, we expect a rising interest in LNG, methanol ammonia, and potentially other energy forms, such as hydrogen, in the future," Gregoriou said.

"Their adoption, though, will vary based on geography and segment. For example, LNG is already well-established in areas around the world, and bunkering infrastructure is supporting the maritime industry, whilst methanol and ammonia are still being developed in infrastructure, availability of sustainable molecules, safety matters, and last-mile delivery.

"In Baseblue, we are fuel agnostic. This means that we believe all these fuels will play an active role in our industry's green transition. We are actively involved in various projects concerning all types of alternative fuels, including sustainable molecules of methanol and ammonia."