Compliance costs of VLSFO vs. bio-methanol vs. e-ammonia
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This case study calculates and compares the compliance costs with regards to EU ETS and FuelEU for VLSFO, bio-methanol and e-ammonia. Results show that the averaged compliance costs for VLSFO between 2025 and 2050 are $966 per mT. Use the Fuel Cost Calculator below to further refine the analysis and make your own business case.
2025 – Compliance costs for VLSFO are $206 per mT, 80% of which due to EU ETS.
2050 – Compliance costs for VLSFO are $2,412 per mT, almost 90% being due to FuelEU.
Fuel prices – All prices are assumed constant and actual prices for fuels are assumed. Change these assumptions and scenarios in the tool.
EU ETS – An average price of €85 per mT of CO2 (EUA) is assumed. Change this assumption in the tool.
FuelEU Pooling – Overcompliance within the framework of FuelEU Maritime can generate substantial benefits for bio-methanol and e-ammonia, starting at approximately $1,000 per mT in 2025 and decreasing to $0 for bio-methanol and $170 for e-ammonia.
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The Fuel Cost Calculator compares the cost of Very Low Sulphur Fuel Oil (VLSFO) with two other types of marine fuel on an energy-equivalent and total absolute cost basis. It compares fuel costs, EU ETS costs, FuelEU penalty and pooling benefits if applied. This tool helps shipowners, operators, and fuel suppliers assess the economic impact of different fuel choices while considering regulatory developments, in particular FuelEU Maritime and EU ETS.
The tool allows for a scenario-based analysis, allowing you to explore predefined fuel price evolutions (Steady State, Fossil Future, Biofuels Better, and Renewable Rise) or define your own price trends. It also enables dynamic selection of a start and end year, so you can focus on specific time ranges to analyse fuel cost evolution. A report of your analysis can be printed and shared to showcase different options all the way up to C-level for strategic decision-making purposes. In short, you can use the Tool for …
✔ Operational Cost Forecast – Project fuel costs over time, incorporating EU ETS and FuelEU penalties or pooling benefits.
✔ Regulatory Compliance Assessment – Determine the cost implications of EU ETS and FuelEU Maritime penalties and identify cost-saving strategies.
✔ Investment Case Report – Create a structured analysis to present fuel cost scenarios and regulatory impacts to decision-makers.
✔ Feasibility Study – Assess the financial and regulatory impact of switching to alternative fuels before making investment decisions.
✔ Fuel Cost Benchmarking – Compare fuels on an energy-equivalent basis to understand which is most cost-effective for specific routes or operations.
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This Q&A session explores the role of biofuels in decarbonizing maritime transport, featuring Johannes Schurmann, Commercial Director Marine at FincoEnergies, supplier of biofuels and supporting shipowners in adopting biofuels with end-to-end services, from technical assessment to regulatory documentation. Johannes shares insights into market developments, pricing trends, regulatory impacts, and operational considerations, focusing on the practicalities of switching to biofuels.