SHIPOWNERS have been warned to look at all their options for compliance with FuelEU Maritime with the carbon intensity regulation less than a month from taking effect.

The regulation will make ships trading with EU countries limit the greenhouse gas intensity of fuels by 2% from 2025-2029, then by 6% from 2030-2034, ratcheting up to 80% by 2050 compared with 2020 levels.

The regulation is meant to complement the EU emissions trading system.

Class society DNV said the costs of the scheme would be significant. Doing nothing and paying to comply would be the most expensive option.

It found at least five strategies with lower lifetime costs than blending in bio-MGO. For an 80,000 dwt bulk carrier working in EU waters for 20 years, these offered cost savings up to 16%, or €21m ($22.2m) over the ship’s lifespan.

But flexibility mechanisms such as banking, borrowing and pooling of compliance credits gave companies options, and they should find which would work best for them.

DNV identified liquefied natural gas fuel as the cheapest way to comply.

“Using LNG and bio-LNG is the least-costly option as using fossil LNG gives lower well-to-wake GHG intensity than required until 2035 compared to MGO-fuelled vessels,” DNV said.

“So, the LNG-fuelled vessel does not need to use expensive biofuels or ‘renewable fuels of non-biological origin’ until then.

“If it banks compliance surpluses in the first years, the LNG case vessel can potentially achieve FuelEU compliance by running on fossil LNG over its lifetime (2025-2044).”

Green groups have criticised the regulation for letting ships use fossil LNG for decades rather than greener options.

Companies such as Siem Shipping have said they expect to make millions by pooling LNG ships with non-compliant vessels that would otherwise bring in hefty penalties.

Better fuel efficiency does not count towards FuelEU compliance. But it does help companies cut costs if they plan to comply by using more expensive, low-GHG fuel.

FuelEU Maritime has incentives for wind-assisted propulsion and shore power. A ship using shore power for all its energy in port would comply from 2025-2029 even without having to use other low-GHG fuels.

DNV said a planned review of FuelEU Maritime by December 31, 2027 could expand its scope and might also consider any new IMO requirements, since the global regulator is due to put its own regulation in place by then.