Mission compliance takes shape as FuelEU Maritime regulations loom

Shipping companies have the freedom to choose their paths to compliance. Options include pooling (vessels are mathematically combined in such a way that they jointly achieve the greenhouse gas values; this is possible within a fleet, but also in combination with the vessels of other companies), borrowing or banking.

With borrowing, operators ‘borrow’ expected future over-achievement of targets (called compliance balance surplus) to compensate for current deficits. With banking, if they fall short of the targets in the reporting year, they can carry this difference forward to the following year.

Companies can also integrate biofuels into their fuel mix to reduce the greenhouse gas intensity of their vessels. And finally, there is also the option of simply paying any penalties incurred and not reducing greenhouse gas intensity.

Shipping companies can pass these penalties on to charterers and customers.

The best option depends on various parameters that are constantly changing, from volatile fuel prices, vessel schedule changes to the varying bunker fuel availability in different ports and agreements in charter and shipmanagement contracts. 

Zero44 is pitching its software as a way to create full transparency and identify the most economically viable options. Earlier this year, DNV added Zero44’s emissions allowance settlements, trading software and Union Registry management to its Veracity maritime cloud platform for users of its Emission Connect services.

The software can be used individually or in combination with Zero44’s software modules for EU ETS and CII compliance and is therefore also able to identify an overall superior strategy that takes into account CII, EU ETS and FuelEU effects.

Modelling uses historical ship performance data and machine learning to predict future consumption and emissions and evaluate different fuel options. Users can then compare all options in the Zero44 dashboard: the amount of a possible penalty payment, alternative biofuel costs, pooling options and other alternatives.

If a shipowner chooses pooling as a strategy for instance, Zero44 also offers a pooling marketplace between its customers and third parties.  

The company said it incorporated feedback from several of its customers, including MPC Container Ships, Minship Shipmanagement and Union Bulk, into the product development. 

Zero44 will present the first version of its FuelEU Maritime product at SMM Hamburg on 4 September.

Riviera’s Maritime Decarbonisation Conference, Europe 2024 will be held in Amsterdam, 24-25 September 2024. Click here for more information on this industry-leading event.