Titan analysis shows FuelEU pooling propelled liquefied biomethane demand

Titan, part of Molgas, has analysed the role of LNG, liquefied biomethane (LBM/bio-LNG) and e-methane (the methane decarbonisation pathway) in FuelEU Maritime compliance, as well as the performance of the regulation, particularly its pooling mechanism, so far.

The paper models compliance for an 8,000 TEU containership operating a route spanning Rotterdam, Antwerp, Hamburg and Algeciras using approximately 18,000 metric tons of LNG-equivalent fuel annually, all within the scope of FuelEU Maritime. Three scenarios are shown: a fuel oil baseline, grey LNG, and a 30% LBM blend.

The oil-fuelled vessel is in deficit in 2025, and penalty costs grow steeply from ~€2.2M to ~€17M by 2040 as targets tighten. With LNG, the containership generates overcompliance of 11,700 tCO₂eq per year in 2025 and remains compliant through 2035. From 2040, a typical 15% LBM blend restores compliance, and any extra LBM generates surplus pooling value. Introducing a 30% LBM blend can increase that surplus to over 34,000 tCO₂eq annually. That represents ~€3.4M to ~€5.1M per year in gross transferable compliance value.

The figures use FuelEU Maritime’s default well-to-wake emissions factor, covering the fuel’s full lifecycle, together with the published penalty rate of €2,400 per ton VLSFO energy equivalent. Gross pooling values are indicative, based on a market range of €100–150/ tCO₂eq. The net commercial benefit will depend on the market compliance values negotiated and the cost premium of LBM versus fossil LNG. For customers, Titan can model this precisely for each ship and supply scenario.

This story was originally published by Hellenic Shipping News. Read the full story at Hellenic Shipping News →