Concern Over EU's Approach to Mass Balancing in Biomethanol and Bio-LNG Supply

by Ship & Bunker News Team
Wednesday April 17, 2024

Industry bodies the Methanol Institute and SEA-LNG have joined forces to raise concerns over the EU's approach to mass balancing in bio-LNG and biomethanol markets.

Mass balancing refers to the practice of taking the green credentials of a biomass-based product in one part of the world and applying them to a fossil fuel-based product elsewhere. Much of the green methanol and bio-LNG currently in use as marine fuel has been produced using this method.

The European Commission has said it intends to exclude the automatic certification of biomethane and biomethanol produced on a mass balancing basis into its Union Database where the green product has been injected into a gas grid outside the EU.

"This exclusion will severely limit the use of these critical fuels in decarbonizing intra-European and international maritime transport even if these fuels were produced in accordance with EU regulations under the Renewable Energy Directive," the Methanol Institute and SEA-LNG said in an emailed statement on Wednesday.

"If this materializes, it will create a trade barrier that threatens to impede the importation of biomethane and biomethanol into the European Union, limiting the availability and increasing the costs of these fuels to the bunkering industry in Europe."

The two organisations are seeking to arrange an urgent meeting with the European Commission to discuss their concerns.