Hapag-Lloyd is 'Good to Go' on FuelEU Compliance With LNG-Fuelled Ships

by Ship & Bunker News Team
Wednesday October 16, 2024

The use of LNG as a marine fuel within Hapag-Lloyd's fleet is already sufficient for it to comply with the FuelEU Maritime regulation from next year.

The GHG savings from the company's current use of fossil LNG will be enough to cover the FuelEU requirements for its entire fleet, Ilyas Muhammad, head of green fuels at Hapag-Lloyd, said at the Argus Biofuels Europe conference in London on Tuesday.

FuelEU Maritime comes into effect from January 2025, seeking to reduce the carbon intensity of European shipping by mandating a percentage of companies' marine energy use that must come from sustainable sources. The regulation aims for a 2% drop in carbon intensity next year, rising to an 80% reduction by 2050.

"The companies like us who have fossil LNG vessels, we are good to go with FuelEU Maritime, without paying any penalties," Muhammad said.

"We have 13 LNG dual-fuelled vessels, so we can create a pool within our system which can then help us to avoid any FuelEU-related penalties."

Going beyond this, the firm will be able to use bio-LNG in some cases to deliver over-compliance with the regulation.

"There is also the market mechanism which FuelEU Maritime introduces through the pooling, which means we can generate over-compliance and sell that over-compliance to the non-compliant companies.

"That should create demand for bio-LNG, because bio-LNG has so far the lowest CO2 abatement cost."

Ship & Bunker News Team
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