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FuelEU Maritime GHG Intensity & Mitigation

Updated: Jul 8


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

Last Friday, we kicked off another round of short quizzes by BetterSea! 🧐 We hope you had some fun and learned more about #FuelEU compliance. Let's dive into the solution and explore the rationale behind it.


Friday's Question:


When it comes to FuelEU compliance, which of the following mitigation options is favorable?


Possible Answers with Given Responses:

  • Technical vessel improvements - 45%

  • Wind-assisted technologies - 36%

  • HFO fuel - 18%


Correct Answers:

  • Wind-assisted technologies


 

General Overview: Understanding the FuelEU Maritime GHG intensity.


The FuelEU Maritime Regulation (EU) 2023/1805 outlines the calculation of greenhouse gas (GHG) intensity for ships in Article 4. The FuelEU Maritime GHG intensity is the ratio of total GHG emissions to total energy used by a ship.


Formula: 


Total GHG emissions / Total energy used


Components:


Total GHG emissions: Includes all well-to-wake (WtW) GHG emissions by different fuel types consumed onboard. The emissions are calculated by multiplying the energy consumption of a specific fuel type with its respective emission factor.


Total energy used: Considers all energy types consumed during the reporting period.


Rationale Behind the Correct Answers for FuelEU Maritime Mitigation:


When considering FuelEU compliance, the intensity indicator (GHG intensity) is crucial. Here's why wind-assisted technologies are the favorable option:


Wind-Assisted Technologies: Wind-assisted propulsion systems (WAPSs) significantly reduce fuel consumption and GHG emissions. Ships with WAPSs benefit from a Wind Reward Factor under FuelEU, reducing their GHG intensity. For example, a vessel with a factor of 0.97 can achieve compliance while still using fossil fuels between 2025 and 2030.


Why Not the Other Options?


Technical Vessel Improvements: Technical improvements, such as waste heat recovery systems, enhance energy efficiency by reducing both the numerator and denominator of the GHG intensity formula, resulting in minimal to no impact on the GHG intensity. While these improvements lower the remedial penalty by reducing non-compliant energy consumption, they do not significantly improve compliance under FuelEU.


HFO Fuel: Heavy Fuel Oil (HFO) has a high emission factor, resulting in an intensity figure that exceeds the regulatory threshold, making it unsuitable for improving compliance.


Regulatory Context:


The relevant portion of the FuelEU Maritime Regulation regarding wind-assisted technologies is in Article 9:


"For the purposes of calculating the attained annual average GHG intensity as referred to in Article 4(1), the energy savings achieved through wind propulsion technology shall be taken into account. The Commission shall adopt implementing acts specifying the verification procedure and the methodology to calculate the energy savings from wind propulsion technology."

A detailed description of how to calculate the wind reward factor and the resulting GHG intensity is outlined in Annex I of the regulation.


For more detailed information, refer to the full text of the FuelEU Maritime Regulation (EU) 2023/1805 on the EUR-Lex website.


We hope this explanation enhances your understanding of FuelEU compliance strategies and the benefits of wind-assisted technologies. Stay tuned for our next quiz this Friday!


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


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