Bio-LNG for EU ETS: Cut costs, reduce emissions, and stay compliant

Carbon costs are climbing fast. Bio-LNG provides a powerful solution for maritime fleets navigating changes in the EU Emissions Trading System (ETS). 

The maritime industry is facing new, uncharted waters. Starting in January 2024, the EU ETS expanded to include the maritime sector. This means shipping companies must pay for their greenhouse gas (GHG) emissions during voyages to, from, and between ports in the European Union and European Economic Area via European Union Allowances (EUAs). 

It’s a phased approach that increases quickly: 

• In 2024, shipping companies must surrender 40% of their EUAs. 

• In 2025, this increases to 70%. 

• From 2026 onward, it’s 100%. 

With EUA prices fluctuating and predicted to rise, GHG emission costs are becoming a major line item for shipping companies. 

The pressure to act is on. 

Bio-LNG offers a powerful, drop-in solution.  

As a renewable, low-carbon alternative to fossil LNG, bio-LNG can reduce lifecycle emissions by up to 80% compared to marine diesel. 

It's also a drop-in fuel for LNG-powered ships. That means (little to) no engine modifications, no new bunkering terminals, and no disruption to your operations. 

And when paired with FuelEU Maritime’s pooling mechanism, bio-LNG becomes more than a decarbonization strategy—it becomes a cost-cutting advantage. 

Every ton of emissions you cut is one less EUA to buy. That’s where bio-LNG really delivers. It also cuts costs in other crucial areas. 

Fewer EUAs needed 

With its significantly lower tank-to-wake (i.e., combustion) emissions (which can even be zero), bio-LNG reduces the number of EUAs you need to surrender. That directly lowers your EUA bill and frees up budget for other operational priorities. 

Protection from price volatility

EUA prices are unpredictable and impacted by everything from market speculation to EU policy shifts. By reducing your reliance on EUA purchases, bio-LNG brings more predictability to your fuel and compliance costs. 

Seamless integration  

With bio-LNG, you don’t need to change your engines or redesign your vessels. It’s a drop-in replacement for fossil LNG that integrates easily into existing fuel supply chains. That means faster deployment, zero retrofitting costs, and a smoother path to decarbonization. 

Stay compliant and protect your reputation 

Not meeting your EU ETS obligations could result in: 

• €100 per ton fines for every ton of CO₂ you fail to account for (by not buying an EUA) 

• Legal and litigation risks, which can complicate your operations 

• Reputational damage with potential stakeholder backlash 

Bio-LNG helps you stay on top of your compliance requirements, ensuring you avoid penalties while maintaining your company’s reputation.  

Beginning in 2025, FuelEU Maritime will require vessels to meet annual lifecycle GHG emission intensity targets—which tighten year after year. 

Here’s where bio-LNG shines. It qualifies under FuelEU as a renewable fuel with ultra-low (even negative) GHG emission intensity. That unlocks access to the FuelEU pooling mechanism—a system that rewards low-carbon fuel use across your fleet. 

By using bio-LNG, you can: 

• Pool GHG emission intensity surplus across multiple vessels in your shipping company 

• Sell surplus GHG emission intensity reductions to other shipping companies obligated under FuelEU Maritime 

In other words, you’re not just avoiding penalties—you’re gaining flexibility, boosting your sustainability metrics, and potentially unlocking new revenue streams.