top of page

Case Study I: FuelEU Maritime Penalty for a 15k TEU Containership

Updated: Jul 8


Containerships waiting at terminal for loading of containers as background for BetterSea's Monday Newsletter

This week, we’re exploring a case study to illustrate the impact of FuelEU Maritime penalties using a 15,000 TEU containership as an example.


General Overview of FuelEU Maritime Regulation


The FuelEU Maritime Regulation aims to reduce greenhouse gas (GHG) emissions from the maritime sector, targeting a 55% reduction by 2030 and climate neutrality by 2050. The regulation mandates stricter emissions reporting and compliance with GHG intensity limits for ships operating to/from or within the EU, promoting the use of cleaner fuels and innovative technologies to drive sustainability.


Case Study: FuelEU Maritime Penalty for a 15,000 TEU Containership


We will calculate the penalty for a 15,000 TEU containership under the FuelEU Maritime Regulation to provide insights into the financial implications of non-compliance.


Main data


Capacity: 15,000 TEU

Annual Fuel Consumption: 15,000 tonnes

Annual Fuel Consumption in Regulatory Scope: 10,000 tonnes

Fuel Mix:

Heavy Fuel Oil (HFO): 55%

Light Fuel Oil (LFO): 40%

Marine Diesel Oil (MDO): 5%

Emission Factors and Lower Calorific Values: As per FuelEU Maritime Regulation (EU) 2023/1805 and IPCC AR5


Guide on how to calculate the FuelEU Maritime Penalty


(a) Fuel Consumption Distribution: Source the consumption per fuel type in tonnes


(b) Total CO2e Emissions: Calculate by multiplying each fuel type's consumption by its respective emission factor


(c) Total Energy Used: Calculate by multiplying each fuel type's consumption by its lower calorific value as per FuelEU Maritime Regulation (EU) 2023/1805


(d) GHG Intensity: Calculate by dividing total CO2e emissions by total energy used.


(e) Excess GHG Intensity: Calculate the difference between actual GHG intensity and the regulatory target.


(f) Penalty Calculation: Calculate based on the excess GHG intensity and the penalty rate (2,400 € per equivalent metric ton of VLSFO).


Results


In this case, the GHG intensity is higher than the regulatory target (between 2025 and 2030: 2% less than the reference value of 91.16 CO2e/MJ).


Penalty: 540,000 €


The Impact of the FuelEU Maritime Penalty: Comparison with the Annual Fuel Costs


To understand the penalty's impact, let's compare it with the annual fuel costs using current market prices.


Market prices:


Heavy Fuel Oil (HFO): 580 €/t

Light Fuel Oil (LFO): 670 €/t

Marine Diesel Oil (MDO): 880 €/t


Results


In this case, the annual fuel costs faced by the vessel equal 6,300,000 €. Therefore, the FuelEU Maritime Penalty amounts to 9% of the annual fuel costs in 2025.


Key Takeaways


Even a slight excess in GHG intensity can result in significant penalties, around 9% of annual fuel costs for our example vessel. Investing in alternative fuels, carbon capture, and wind propulsion is crucial to avoid such penalties and ensure regulatory compliance. Alternatively, pooling represents a cost-effective option for compliance with FuelEU Maritime.


This case study demonstrates the importance of meeting FuelEU GHG intensity targets and the impact of non-compliance. By understanding the financial implications, shipping companies can better prepare and adopt necessary measures to ensure compliance, avoiding substantial penalties.


Stay tuned for more insights and case studies in our upcoming newsletters. Together, we can navigate the path to maritime decarbonization.


Feel free to reach out if you have any further questions or are interested in learning more about how BetterSea's streamlined and end-to-end FuelEU software solution can help achieve cost-efficient and effortless compliance.


Best regards,

BetterSea Team


Contact Us: info@bettersea.tech


Follow Us on LinkedIn!


Note: The fuel prices have been sourced from the Global Average Bunker Price of Ship & Bunker on the publishing date. The current FuelEU Maritime regulatory text refers to IPCC AR4 values but the responsible entities have stressed to expect an update to IPCC AR5 values before 2025.

Comments


bottom of page