Bio-LNG: a sustainable fuel for maritime decarbonization

Pressure to decarbonize shipping is accelerating. With ambitious targets from the International Maritime Organization (IMO), the EU Emissions Trading System (ETS) now covering maritime, and FuelEU Maritime enforcement live, you need a solution that works now—not in a decade.   

Cutting emissions by up to 80% compared to marine diesel, bio-LNG is a drop-in solution that works with existing LNG infrastructure—no vessel upgrades needed.  

But beyond emissions, bio-LNG directly reduces the cost of compliance. Its lower lifecycle emissions mean fewer EU Allowances (EUAs) to purchase under EU ETS—and a stronger position under FuelEU Maritime’s GHG emission intensity targets and its pooling mechanism.  

The result? A proven, scalable fuel that helps you meet regulatory requirements, manage rising GHG emission costs, and stay competitive—all without disrupting your fleet.  

Bio-LNG is a renewable version of liquefied natural gas (LNG), made from organic biomass waste like manure, food scraps, and/or agricultural residues. These materials are processed into biogas, which is purified into biomethane and liquefied into bio-LNG.  

Chemically, bio-LNG is identical to fossil LNG, meaning:  

• Minor or no engine modification required  

• No new bunkering infrastructure needed  

• Seamless integration into LNG-powered fleets   

Unlike fossil fuels, bio-LNG participates in the biogenic carbon cycle, releasing CO₂ recently absorbed by biomass, rather than new CO2 from underground sources. This makes a critical difference in lifecycle emissions. 

Emissions reductions  

Switching to bio-LNG can cut lifecycle emissions by up to 80%. For operators, this means:  

• Compliance with emission targets of FuelEU Maritime and potentially IMO GHG Fuel Intensity (the latter subject to adoption)   

• Compliance with emission caps of EU ETS and potentially IMO GHG levy (the latter subject to adoption) 

• Enhanced environmental credentials  

• A clear commitment to responsible shipping  

Economic incentives  

Bio-LNG doesn’t just reduce emissions, it can reduce the cost of compliance.  

EU ETS: Fewer allowances, lower costs

Bio-LNG’s zero tank-to-wake CO₂ emissions mean fewer EUAs need to be purchased. This reduces exposure to EUA price volatility. In a tightening ETS market, this matters more with every passing year.  

FuelEU Maritime: Stay ahead of targets

From January 2025, FuelEU Maritime emissions intensity targets will tighten annually. For vessels using LNG Otto engines, fossil LNG may fall short. Bio-LNG enables compliance without costly retrofits or operational changes.  

FuelEU Maritime pooling: Turn compliance into revenue  

Operators who outperform FuelEU targets with bio-LNG can bank surplus emission intensity reductions or pool them to create a new revenue stream, selling surplus emission intensity reductions.  

Step 1: Switch to bio-LNG  

If you’re already operating LNG-powered vessels, you’re bio-LNG ready. Start blending or replacing LNG with bio-LNG to begin lowering your fleet’s lifecycle emissions immediately.  

Step 2: Choose the right bio-LNG partner  

Collaborate with an organization that offers well-to-wake procurement capabilities and integration expertise to ensure compliance.  

Step 3: Use FuelEU Maritime's pooling mechanism to maximize returns  

Take advantage of FuelEU Maritime’s pooling mechanism by selling surplus emission intensity reductions. It’s a smart way to turn sustainability into a competitive advantage and offset compliance costs over time.