Marketing Communication

How strategic buying can help shipping companies avoid a compliance headache.

In less than a year, shipping companies will need to surrender enough European Union Allowances (EUAs) to cover their emissions for the 2024 reporting period.

With this date fast approaching, waiting until the September 2025 deadline to purchase EUAs could be costly. Many forward-thinking shipowners have been choosing a proactive approach by buying allowances immediately post-voyage in 2024 and will continue to do so in early 2025.

Why Adopt a Buy-As-You-Go Strategy for EUAs?

A buy-as-you-go approach to purchasing EUAs offers businesses a practical and efficient way to manage their carbon compliance obligations. This strategy is particularly beneficial for organisations looking to balance cost, stability, and regulatory compliance in a dynamic market environment.

One of the main advantages of this approach is improved budget management. Rather than waiting until deadlines to make potentially large payments, businesses can spread the cost of EUAs over time, by factoring in the cost of EUAs into freight prices on an ongoing basis and purchasing EUAs accordingly. This allows for greater financial flexibility and helps avoid the strain of lump-sum purchases at the last minute.

Additionally, a buy-as-you-go strategy can help mitigate the effects of price volatility in the EUA market. By purchasing allowances incrementally, companies can reduce their exposure to sudden price fluctuations, creating a more stable and predictable financial framework.

Finally, this approach ensures businesses stay ahead in meeting compliance requirements. Regularly purchasing allowances helps to avoid the risk of falling short, ensuring companies can meet their obligations and steer clear of fines or sanctions.

By adopting a buy-as-you-go strategy, businesses can take a proactive, balanced approach to managing their carbon responsibilities while maintaining financial control and operational peace of mind.

Simplifying EUA Procurement 

Navigating the complexities of EUA procurement and compliance obligations can be challenging, which is why Integr8 offers a specialised team to support shipowners with the task. By leveraging the expertise of seasoned traders, Integr8’s Carbon Desk provides a flexible service tailored to meet the needs of businesses of all sizes.

One of the key advantages of the service is its accessibility (subject to confirmations of eligibility on a case-by-case basis). There are no minimum purchase requirements, meaning traders can start with as few as one EUA. This flexibility allows businesses to engage with the market on their own terms, whether they are looking to make small-scale purchases or explore larger opportunities over time.

Integr8 also eliminates upfront costs by forgoing commitment fees, making it easy for eligible companies to begin trading without financial barriers. The onboarding process is simple and efficient, with a straightforward KYC (Know Your Customer) process that ensures quick setup and minimal disruption.

All transactions are conducted in USD, helping to reduce foreign exchange risks and provide greater financial clarity. This approach is particularly beneficial for eligible businesses seeking to minimise complexities when managing their carbon compliance obligations.

By providing a seamless and accessible platform, Integr8’s Carbon Desk allows eligible businesses to streamline their EUA procurement and focus on achieving their environmental and compliance goals with confidence.

To request a free 30-minute consultation or to receive a brochure, email carbon@integr8fuels.com or contact your trading representative.

Media Contact:

Angela Freeth, angela.f@integr8fuels.com

Athens, Greece – 29 October 2024 – Integr8 Fuels, a leading provider of marine fuel procurement and carbon trading services, is proud to announce its role as bronze sponsor of the IBIA Annual Convention 2024, taking place in Athens from 6-7 November. This flagship event, hosted by the International Bunker Industry Association (IBIA), will gather industry leaders from across the maritime and bunker sectors to address the evolving challenges and opportunities within the fuel supply chain.

Integr8 Fuels delivers a comprehensive range of services for shipowners and operators worldwide, offering data-driven insights and robust fuel management solutions. The company’s expertise in fuel procurement and risk management has made it a trusted partner for global fleets looking to optimise fuel strategies and navigate market volatility.

“We are excited to sponsor the IBIA Annual Convention 2024,” said an Integr8 Fuels spokesperson. “As the industry continues to focus on sustainability and operational efficiency, this event provides a vital forum for collaboration and exchange. We look forward to connecting with our industry peers to explore innovative ways to address these pressing challenges.”

Throughout the event, representatives from the Integr8 Fuels Athens office will be available to discuss the company’s latest offerings and insights into the trends shaping the future of marine fuel.

To arrange a meeting with an Integr8 Fuels representative at the convention, please email athens@integr8fuels.com.

For more information about the event, visit https://www.ibiaconvention.com/.

Media Contact:

Angela Freeth, angela.f@integr8fuels.com

Dubai, UAE – 10 September, 2024 – Integr8 Fuels is proud to announce that it has achieved ISO 9001:2015 accreditation for Quality Management Systems (QMS) across its global entities. This certification demonstrates our commitment to delivering the highest standards of service and operational excellence to our clients worldwide.

The ISO 9001:2015 certification, recognised as the international standard for quality management, specifies requirements for a robust quality management system. This accreditation ensures that our company consistently provides products and services that meet customer and regulatory requirements while demonstrating a continuous improvement process. Further information on the ISO 9001 standard can be found here.

Integr8 Fuels’ entities in Dubai and Singapore have successfully renewed their ISO 9001 certifications. In addition to the renewals, we are delighted to announce that our newest entities in Taiwan and Australia have achieved ISO 9001 certification for the first time. The establishment of these new entities represents a strategic expansion of our global footprint, allowing us to be closer to our customers in these vital regions. This proximity enables us to provide more tailored and localised services, ensuring we meet the unique needs of our clients on the ground.

Integr8 Fuels’ Fuel Quality and Claims Manager, Chris Turner, commented, “Achieving ISO 9001 certification across our key global entities reflects our commitment to excellence and our continuous efforts to enhance customer satisfaction. With our new entities in Taiwan and Australia now certified, we are well-positioned to deliver even greater value to our clients in these regions.”

The ISO 9001:2015 accreditation affirms Integr8 Fuels’ position as a trusted partner in the bunker trading industry. As we continue to expand our global presence, this certification will play a crucial role in ensuring we uphold our high standards across all our operations.

Media Contact:

Angela Freeth, angela.f@integr8fuels.com

This is the fourth bi-annual report analysing the bunker fuel landscape

In the latest report from Integr8 Fuels, bunker quality and claims manager Chris Turner advises shipowners and bunker buyers on how they can improve their buying processes and performance. Tapping into the world’s biggest bunker fuel quality sample database, Turner reveals the most pressing quality issues the industry is up against. These include:

• Red Sea closure affecting VLSFO compliance for vessels rerouting around Africa
• Global VLSFO compliance suffers as suppliers stretch barges to cash in on rising HSFO demand, driven by increasing scrubber numbers
• Two-thirds of fuels are still sold with obsolete (pre-2017) specifications. Can the new ISO specs finally shake up old school practices?
• Profit margin-motivated blenders push more HSFOs over ISO limits
• VLSFO sulphur off specs worsening in the ARA and partly driven by high- to low sulphur barge switching

Red Sea closure impact on VLSFO compliance

Geopolitical events often have a knock-on effect on fuel quality, sometimes relating to blending economics, and occasionally, also relating to the impact on barge infrastructure because of rapidly changing demand.

Since October 2023, many more vessels have been rerouting around Africa rather than travelling via the Red Sea, resulting in a significant increase in volume of HSFO demand, with . During the same period, there has been a 30% increase in VLSFO sulphur off specification incidents in ports along the African coast and nearby Spain, which upon closer inspection, show a root cause of affected barges also carrying HSFO.

Integr8 Fuels’ analysis has identified suppliers running a similar model who are unaffected – this likely due to their infrastructure allowing double valve segregation and separate manifolds onboard the barge preventing any cross-over contamination, and/or proper management of grade changeover.

The increase in HSFO demand is also putting pressure on supply models.

Another factor is the significant increase in the number of vessels equipped with scrubbers, resulting in a far higher demand for HSFO than in recent years with data available to Integr8 suggesting approximately 100 million MT of deadweight tonnage being either delivered or retrofitted with scrubbers in 2023. This combined with the price spread which remains very appealing, and scrubber assets travelling further at higher speeds, continues to support the demand going forwards.

Suppliers of course want to meet this increased demand and in doing so place transitional temporary pressure on existing assets or could be forced into a sea change in strategy, both of which may result in the practice of storing both HSFOs and VLSFOs onboard the asset.

This is made apparent by increased sulphur off specification occurrences with the root cause being the switching of grades by certain suppliers, in ports including but not limited to Barcelona, Callao and Hong Kong.

 New ISO specs

The International Organization for Standardization’s (ISO) recently launched ISO 8217:2024 standards present a rare opportunity to do away with the industry’s reliance on obsolete fuel specifications. This is no easy task as research from Integr8 shows that two-thirds of residual bunker fuels and three-quarters of distillate bunker fuels are still sold with pre-2017 specifications.

ISO 8217:2024 introduces several important amendments. Notably, it sets minimum viscosity limits across all residual grades, addressing handling issues with low-viscosity fuels. It also identifies specific chemical species linked to operational problems, such as organic chlorides, and incorporates international testing standards. The new specification prepares the industry for the growing use of biofuel blends by establishing new testing parameters for these fuels, such as FAME content and net heat of combustion.

There are however missed opportunities, namely related to de-minimis levels of organic chlorides and cold flow properties.

Suppliers may again attempt to avoid the small print on organic chlorides as they have previously done with Clause 5, which could possibly have been better addressed by incorporating a maximum limit in tables. Cold flow properties must only be reported, not guaranteed, leaving the potential need for buyers to seek additional guarantees outside ISO 8217:2024. This remains a concern as certificates of quality (where such values are reported) often lack reliability when provided at a distant time from delivery.

Despite these challenges, the ISO 8217:2024 specification represents a substantial step forward, providing the necessary framework to address many current fuel quality issues. The uptake of the 2024 specification will depend significantly on ship owners demanding these new standards be incorporated into charterparty agreements. By doing so, owners can drive the transition from outdated specifications to the latest version, paving the way for a more reliable and efficient future in marine fuel standards.

Global HSFO off specs 

Global HSFO quality has worsened in the past six months. The number of off-specification HSFO samples has gone up from 3% to 3.4%, and this is significantly higher than for VLSFO (2.1%) and MGO (2.8%).

Profit-motivated blending can go some way to explain the deteriorating HSFO trend. Almost half of HSFO off specs have been blending-related and come as a result of blending close to HSFOs density and viscosity limits, Turner argues. Water content is the second most likely usual off spec suspect and has made up around a third of HSFO off specs.

But fortunately, neither density, viscosity nor most of the water off specs qualify as so-called “critical” or “high risk” off specs. They are not likely to lead to serious engine trouble or debunkerings, which can cost shipowners dearly. These off specs are typically economically motivated. Density and viscosity off specs are more common for HSFO than for VLSFO and LSMGO because they are the blending targets for HSFO, and blenders have an incentive to blend as close to those limits as possible to save money.

VLSFO sulphur off specs  

Sulphur is the biggest off spec concern for VLSFO. Again, this has to do with blending as the 0.50% sulphur limit is the target that blenders have their eyes on. Blending too far from the limit can eat into your profit margins, and we have seen the average sulphur contents in VLSFOs creep up in both the ARA and Singapore in the past six months.

In Singapore, you were 2.5 times more likely get a VLSFO stem with a sulphur content of 0.51-0.53% in the past six months as you were getting one in the preceding six-month period. It is evident that blending is being optimised towards the 0.50%.

But while only 0.3% of VLSFOs test off spec for sulphur in Singapore, the ARA has seen 2% of VLSFOs testing off spec. In the ARA, “we regretfully report that we are almost twice as likely to face a sulphur off specification incident now than in the previous reporting period,” Turner writes.

The report is available to download for free from the Integr8 website at https://integr8fuels.com/fuel-quality-trends-2024/

Media Contact:

Angela Freeth, angela.f@integr8fuels.com

In the fourth bi-annual report from Integr8 Fuels, bunker quality and claims manager Chris Turner advises shipowners and bunker buyers on how they can improve their buying processes and performance.  Tapping into the world’s biggest bunker fuel quality sample database, Turner reveals the most pressing quality issues the industry is up against.

These include:

• Red Sea closure affecting VLSFO compliance for vessels rerouting around Africa
• Global VLSFO compliance suffers as suppliers stretch barges to cash in on rising HSFO demand, driven by increasing scrubber numbers
• Two-thirds of fuels are still sold with obsolete (pre-2017) specifications. Can the new ISO specs finally shake up old school practices?
• Profit margin-motivated blenders push more HSFOs over ISO limits
• VLSFO sulphur off specs worsening in the ARA and partly driven by high- to low sulphur barge switching
• The supply landscape as it relates to availability, off-specification trends and problematic parameters
• Biofuel quality and distribution
• Geographical variances and “hot spots”

Published June 2024

Dual-fuel vessel owners should look to liquefied e-methane as a drop-in bunker fuel to make the most out of emission compliance, argue Jonathan Gaylor of Integr8 Fuels and Maximilian Matheis of TURN2X.

View this article as a PDF »

We already know that fossil LNG-fuelled vessels will pay less to comply with the EU’s Emissions Trading System (EU ETS) than vessels fuelled with conventional high sulphur fuel oil (HSFO), very low sulphur fuel (VLSFO) and low sulphur marine gasoil (LSMGO) because LNG has a lower carbon factor. Many of these LNG-fuelled vessels will also be compliant with FuelEU Maritime (FEUM) greenhouse gas (GHG) intensity reduction targets until 2030, 2035 and 2040, depending on their engine type and methane slip. Dual-fuel vessels have recently benefitted from low fossil LNG prices, which have rendered it a more attractively priced bunker fuel option to VLSFO, LSMGO (Rotterdam and Singapore) and HSFO (Rotterdam).

Liquefied e-methane, or e-LNG, is almost five times more expensive than fossil LNG, but because you need so little of it per vessel to meet FEUM targets for 2030-2039, it will not add much to the total price of a blend of fossil LNG and e-LNG. Any compliance surplus from extra e-LNG consumption will be added on top of a neutral compliance balance and averaged out across your fleet or pool, or it can be banked for future years.

Incoming LNG Glut

After the LNG bunker market was shaken by Russia’s invasion of Ukraine and skyward prices, it now faces a period of oversupply, low prices and soon a doubling of the global LNG-fuelled fleet. Massive fossil LNG production and export growth from the US and Qatar is set to put LNG in a prime position to continue to trade at discounts to conventional VLSFO and LSMGO prices. Fresh output boosts from Malaysia, Australia and others also form part of a wave of new supply. So, if fossil LNG prices keep at sustained discounts to conventional fuels going forward, these discounts can be used to cover a higher price paid for e-LNG, which can be used to meet more and more stringent GHG reduction targets.

Mass Balancing and Virtual Liquefaction

And you do not necessarily need to blend e-LNG into fossil LNG physically. The LNG industry is increasingly becoming familiar with mass balancing and virtual liquefaction – accounting techniques that remove the need to move physical e-LNG molecules out to every ship and other end-users. A shipowner can order a certain amount of e-LNG in its LNG blend but will actually receive pure fossil LNG in its ship’s fuel tank. The shipowner will pay for, say 1% e-LNG, which will be produced and distributed to another end user that has paid for fossil LNG and would otherwise have consumed only fossil LNG. More e-LNG will be consumed on the balance as a result and costs can be cut in its distribution and liquefaction, which can be done virtually and boost the competitiveness of e-LNG.

Price Edge on Liquid Bunker Fuel Blends

Integr8 Fuels estimates that 2% used cooking oil methyl ester (UCOME) blended with 98% VLSFO is priced around $610/mt with current price levels in the ARA. If you blend e-LNG into the fossil LNG, the e-part will count twice towards FEUM targets towards 2033 because it qualifies as a renewable fuel of non-biological origin (RFNBO) if it has GHG savings of more than 70%. Say you blend in 1% e-LNG with 99% fossil LNG, then that e-LNG component would count as 2% RFNBO and be priced around $480/mt. These prices have been adjusted for calorific contents to make them VLSFO-equivalents in terms of energy. In other words, e-LNG blends are about $130/mt more cost efficient than biofuel blends when you compare energy for energy with 1-2% shares of renewables.

Taking the RFNBO argument a bit further, running just one vessel on 100% e-LNG can cover the FEUM compliance of 44 other similar vessels running on VLSFO between 2025-2029, according to a recent report by the Mærsk Mc-Kinney Møller Center for Zero Carbon Shipping. This is because the e-LNG vessel generates a massive compliance surplus that can be averaged out across a fleet of conventionally fuelled vessels or a pool of vessels. Your compliance surplus can therefore be sold to other shipowners through pooling with them. It can also allow you to lower your EU ETS exposure and help improve your Carbon Intensity Indicator (CII).

FEUM Here to Stay

When we consider not just e-LNG on its own, but in blends with attractively priced fossil LNG, it becomes a more attractive proposition to dual-fuel vessel owners. This will lead to further investments into this space and continue to reduce costs. It is important to note that FEUM is a long-term regulation that can enable shipowners to be confident about signing the long-term agreements that are necessary for e-LNG projects to get through the final investment decision stage. Since these projects will have strong commercial underpinnings, they are more robust. As an e-LNG supplier or project developer, you need long term contracts to underwrite power purchasing agreements for these types of fuels. FEUM creates predictability through being an offtake enabler. This long-term focus does not generally align with the nature of the bunker market – which tends to favour spot deals – but FEUM is poised to help bridge that gap.

How It’s Made

E-LNG is an electricity-based fuel where green hydrogen is one of its two major components. The process of splitting water into hydrogen and oxygen through electrolysis is dependent on renewable electricity generation, so access to competitively priced electricity is key. E-methane is e-LNG in gas form and has no upstream emissions because it is synthesised at plants that combine green hydrogen from renewable electricity with biogenic CO2. The green hydrogen allows renewable electricity to be stored off the grid and without a need for batteries. This green hydrogen is subsequently reacted with captured biogenic CO2 and liquefied into e-LNG.

All of these processes are comparatively CAPEX- and OPEX-intense, but e-methane start-up TURN2X is actively working on lowering the levelised costs for e-LNG to become an even more competitive drop-in fuel. A shared characteristic of all electricity based
fuels (i.e. e-LNG, e-ammonia and e-methanol) are the conversion losses, especially within the electrolysis. The conversion loss from methanation – which TURN2X uses to produce e-methane – is significantly smaller. Further increasing the efficiency of electrolysis will therefore become an important lever to reduce the energy conversion losses going forward.

The Case For E-LNG

It is almost impossible to electrify largescale ocean-going ships and there is not yet technological readiness for hydrogen fuelled vessels – which is why we need to move one step further with the molecules toward hydrogen derivatives such as e-LNG.
TURN2X recently launched its first commercial e-methane plant in Spain’s Miajadas. The location was chosen for its abundant solar energy potential, and because the electricity grid in this region in Spain is already suffering from congestion at certain times during the day, it has become harder for renewable electricity projects to come online. The company is creating an off-grid opportunity to bring in renewables projects while finding another way of transporting it out of Spain – and sees the pan-European gas grid as the largest battery that we currently have.

Munich-based TURN2X is now looking to the maritime sector for long-term contract customers, and because FEUM does not have an end date, it can help underpin growing renewables demand in decades to come. This can, in turn, enable TURN2X to develop even more competitive and scalable solar PV projects on-site for affordable green electricity and further reduce the price of critical CAPEX components such as the electrolyser stacks and the proprietary methanation technology. Maritime is one outlet for TURN2X, which has teamed up with Integr8 Fuels to reach a wide network of fossil LNG-fuelled vessels with e-LNG. Existing bunker infrastructure used to deliver fossil LNG can just as well be used to deliver e-LNG.

Jonathan Gaylor

Integr8 Fuels
jonathan.g@integr8fuels.com

Maximilian Matheis

TURN2X
max@turn2x.com 

turn2x.com

For more information about Integr8’s energy procurement offering, visit our bunker trading services page.

Chris Seidel, Integr8 Fuels Australia’s Business Manager

Integr8 Fuels, a global leader in bunker trading and fuel management services, today announced the launch of a new trading desk in Perth, Australia. This strategic expansion positions Integr8 to better serve its international clientele by broadening supply chain capabilities and delivering expertise suited to the Australasian bunkering sector. The international marine fuels procurement company also aims to capitalise on new domestic business opportunities in Australia, by catering to the burgeoning renewables segment and offshore oil & gas projects.

“Our expansion into Australasia is a natural progression reflecting our commitment to providing clients with tailored support and localised market intelligence,” said Yusuff Shah, Australasia Trading Lead for Integr8 Fuels. “With our on-the-ground presence in Perth, we can better understand the unique challenges and opportunities this region presents.”

Chris Seidel, Integr8 Fuels Australia’s Business Manager for its Perth office, is eager to contribute to the company’s mission of shaping the future of marine fuels and supporting the country’s decarbonisation journey. Leveraging his extensive Australian offshore oil and gas services experience spanning over 30 years, Chris looks to develop and nurture client and supplier relationships in the region.

Chris commented “The dynamic evolution of the Australasian bunker market reflects mounting interest in the exploration of alternative energy solutions and our commitment lies in supporting clients as they navigate the opportunities and challenges that this momentous transition offers. Fundamental to this will be building and reinforcing partnerships with trusted, hands-on local suppliers.”

Opportunities in Australasia

Australia is experiencing renewed interest in offshore oil and gas exploration, and strong government support for solar, wind, and other renewables has encouraged the expansion of sustainable energy projects.

In addition, decarbonisation implemented by the Australian government are expected to incentivise the adoption of biofuels and other alternative energy sources. Integr8 Fuels previously reported a rising demand for Liquified Natural Gas (LNG), which, as a lower carbon alternative to traditional marine fuels, presents a significant opportunity for bunkering services in the region.

A key focus for Integr8’s new posting will be to forge partnerships with suppliers who have been vetted by the International Sustainability and Carbon Certification (ISCC) scheme. The ISCC is a global certification system that sets standards for sustainable production, sourcing, and trade of all kinds of bio-based feedstocks and biofuels, in line with the EU’s Renewable Energy Directive.

In order for shipowners to reduce their emissions exposure towards environmental regulations like the EU Emissions Trading System (EU ETS) and FuelEU Maritime, they can produce a Proof of Sustainability (PoS) document to confirm the sustainability of the bio-based components of their fuel. Integr8 is certified to pass on PoS from supplier to customer, ensuring compliance for global clients with ships operating within the EU.

Contacts:

Yusuff Shah, Australasia Trading Lead: yusuff@integr8fuels.com

Christopher Seidel, Business Manager: chris.s@integr8fuels.com

Integr8 Fuels will again participate in this year’s Middle East Bunkering Convention (MEBC), taking place in Dubai on 05-07 February 24.

Bunker Quality & Claims Manager, Chris Turner, will deliver a presentation on the new world of bunkering, exploring how stakeholders will have to evolve to deal with the commercial and technical challenges driven by decarbonisation and fuel quality. It is a matter of survival of the fittest; those who embrace change and those who do not.

Chris will also join an expert panel for Session 1. As geopolitical headwinds continue to impact the shipping industry, speakers in this opening session will consider how vessel trading patterns are being adapted in response to the current volatile economic climate, on a global scale and regionally. Is ‘deglobalisation’ set to become a future trend and how might this affect various vessel segments and bunkering?

Speakers will examine the current commercial pressures on bunker companies, including fuel prices, the availability of credit, bunker licensing, and fuel quality challenges. As margins have narrowed over the past year, this session will consider whether more industry consolidation is on the horizon. Are bunker companies having to become ‘leaner and fitter’ to stay ahead and how are they approaching issues such as staff recruitment and retention?

To learn more or to catch up with Chris at the event, hosted by Petrospot Limited, email marketing@integr8fuels.com.

Integr8 achieves ISCC EU certification to trade sustainable biofuels and help shipowners prove compliance with environmental regulations.

Integr8 Fuels has today announced they have been awarded certification from the International Sustainability and Carbon Certification (ISCC) scheme for the trading of biofuels. The news comes in advance of a raft of regulations from the EU designed to reduce greenhouse gas (GHG) emissions from shipping, which are due to come into effect in 2024 and 2025.

In order for shipowners to reduce their emissions exposure towards environmental regulations like the EU Emissions Trading System (EU ETS) and FuelEU Maritime, they will need to show that the low carbon fuels they consume are sustainable and meet the criteria defined in the EU’s Renewable Energy Directive (RED II).

As conventional ship engines can run on biofuels, they can have an edge over alternatives like LNG, which requires specialised engines. For biofuel suppliers, however, this market power comes with great responsibility. Biofuel suppliers and operators will have to provide a Proof of Sustainability (PoS) or similar documentation to verify the sustainability of feedstock and energy inputs.

ISCC is a global certification system that sets standards for sustainable production, sourcing and trade of all kinds of bio-based feedstocks and biofuels. A PoS follows a fuel batch throughout its whole supply chain with GHG estimates.

Integr8’s Bunker Quality and Claims Manager, Chris Turner, asserts why certification and documentation of this nature will be paramount in the evolving alternative fuels regime.

“Shipowners are turning to alternative fuels with significantly lower emissions than fossil fuels to trim the greenhouse gas emissions from their vessels. Alternative fuel suppliers must show that the bio-components in their fuels are sustainable and provide proof of that to their customers.

With ISCC EU certification, we are demonstrating our capability and commitment to trading biofuels that have been produced by ethical and sustainable practices, and importantly, we can provide the Proof of Sustainability that clients need to verify this with regulators. It provides an additional layer of trust and reassurance for our customers.

Without this documentation, then the biofuels, which are generally bought at premiums to conventional fuels, would not be counted in any emissions saving, counting the same as mineral fuels.”

Ultimately, the benefit of requiring documentation is twofold:

“Not only will certification ensure we are making meaningful strides towards decarbonising the industry, but it will also bring enhanced transparency and accountability to a historically opaque sector. I am hopeful that we will emerge a better and more professional industry as a result,” Chris explains.

Integr8’s ISCC EU certificate will enable the international bunker trading firm to pass on PoS for liquid and gaseous biofuels, including fatty acid methyl ester (FAME), hydrotreated vegetable oil (HVO) and liquefied biomethane (LBM).

Press Contact: Angela Freeth

Email: angela.f@integr8fuels.com

Tel: +44 (0) 207 467 5877

To see how we can assist you with your fuel procurement requirements, visit our Contact Us page.

The shipping sector has come under increased scrutiny due to its environmental impact and lack of transparency in recent years. But it may “finally shift from the opacity (and endemic mistrust) of the past to a more professional, transparent and traceable future,” Integr8 Fuels bunker quality and claims manager Chris Turner writes in the company’s latest bunker quality report.

Need for change

Shipowners are turning to alternative fuels with significantly lower emissions than fossil fuels to reduce the greenhouse gas (GHG) emissions of their vessels. As technology advances, ships may eventually run on fuels with zero-emission potential such as ammonia or methanol.

For now though, biofuels and liquefied natural gas (LNG) are the most promising conventional fuel alternatives to meet upcoming emission intensity-reduction targets in the European Union’s FuelEU Maritime regulation and the International Maritime Organisations’ (IMO) revised GHG strategy. As conventional diesel engines do not require any modifications to run on biofuels, they have a competitive edge over LNG. For biofuel suppliers, however, this power comes with great responsibility.

 Encouraging a culture of responsibility

With the EU’s Emissions Trading System including shipping from next year, and with FuelEU Maritime coming into effect from 2025, shipowners will have to report their fleets’ verified emissions to, from and between EU ports. Turner explains that alternative fuel suppliers must show that the bio-components in their fuels are sustainable and provide proof of that to their customers.

“If this is not possible then the alternative fuels, which are generally bought at premiums to conventional fuels, would not be counted in any emissions saving, counting the same as mineral fuels,” he says.

As a result, alternative fuel bunker buyers – especially biofuel consumers – will pay close attention to the feedstocks and well-to-wake emissions associated with these fuels. This is likely to compel suppliers to maintain and encourage transparency and traceability through their product supply chain.

“Of course, not all suppliers will embrace alternative fuels or mandatory mass flow meters (as recently announced in Rotterdam, Antwerp and Brugge ports),” Turner argues, “but those who do will quickly realise their tried and tested practices will be challenged by the end users who will demand they demonstrate and certify sustainability.”

Navigating towards transparency

Documentation will be paramount in the evolving alternative fuels regime, Turner argues.

The Bunker Delivery Note (BDN) issued by the marine fuel supplier must include the alternative fuel product and grade. For biofuels, bunker suppliers and operators will have to provide PoS or similar documentation to verify the sustainability of feedstock and energy inputs. The International Sustainability & Carbon Certification (ISCC) is globally recognised as an approved sustainability certificate.

ISCC is a global certification system that sets standards for sustainable production, sourcing and trade of all kinds of bio-based feedstocks and biofuels. A PoS will be passed on throughout the whole supply chain – from initial producer to end consumer. It evaluates the sourcing of raw materials, supply chain management, land use, GHG emissions and social aspects of various companies’ activities.

This could all lead to a “changing of the guard” in the bunker industry, Turner suggests. Stakeholders “from barge deck hand to buyer, and beyond” will need to be retrained to avoid ambiguity on the BDN for the verifier, according to Turner.

Unlike IMO 2020, which was an overnight shift to mostly low-sulphur fuels, the gradual shift to alternative fuels will give suppliers time to realign their efforts to meet evolving industry standards for transparency and sustainability.

Turner discusses this subject, and assesses trends related to biofuels and all conventional grades of marine fuels in the free Bunker Quality Trends Report (Q3-2023).

Press Contact: Angela Freeth

Email: Angela.f@integr8fuels.com

Tel: +44 207 467 5877