Finland-headed energy and gas major Gasum Oy has announced that it has signed a Letter of Intent (LoI) with compatriot RoPax operator Wasaline to build the first large-scale commercial FuelEU Maritime pooling service.
Wasaline operates a hybrid ferry that can run on batteries as well as liquefied natural gas (LNG) and bioLNG aka LBG. The ferry transports passengers as well as cargo between Finland and Sweden.
Wasaline would be providing over-compliance to the pool by running its daily route on bioLNG. Gasum would manage the pool, supply the ultra-low emission bioLNG, and offer over-compliance to shipping companies with conventional fueled vessels.
Uniquely credible and reliable pooling solution
As an established bioLNG producer and distributor, Gasum is able to guarantee the required supply of ultra-low emission fuel to Wasaline.
Additionally, the regular route of the ferry brings predictability to the pooling service.
According to Gasum, its FuelEU Maritime pooling service is the easiest and most reliable way for shipping companies to save on compliance costs and promote the production of low-emission fuels at the same time.
As a major bioLNG producer and supplier, Gasum is in a unique position to provide a reliable full-service pooling solution to shipping companies. Customers have shown a strong interest in a pooling service offered by Gasum. Our long experience and strong relationships in the maritime market give us a competitive advantage that few other companies can provide, said Jacob Granqvist, VP of Maritime at Gasum.
Compliance as a service
FuelEU Maritime is a European Union regulation established to increase the use of renewable and low-carbon fuels and limit greenhouse gas (GHG) emissions.
The regulation will apply to all ships of over 5,000 gross tonnage calling at EU ports.
Starting in 2025 the owners of such vessels need to reduce the carbon intensity (CI) of purchased fuel initially by two percent with the required reduction growing incrementally to as much as 80 percent by 2050.
To make compliance easier for shipping companies, FuelEU Maritime permits the voluntary pooling of emission reductions between vessels.
This means, that vessels that are over-compliant can compensate for emissions on behalf of under-compliant vessels, in other words, provide compliance as a service.
We at Wasaline are excited by the opportunity to participate in a solution that has the potential to increase the production and use of renewable biofuels. We prioritize innovation and sustainability in shipping and are happy to be able to help others reduce emissions and drive the green transition forward in our industry, Peter Ståhlberg, CEO of Wasaline.
Increasing availability of bioLNG and eLNG
Liquefied biomethane, bioLNG, is a fully renewable and environmentally friendly fuel with life-cycle GHG emissions that are according to Gasum, on average, 90 percent lower when compared with fossil fuel use. Biogas can be used in all the same applications as natural gas.
Gasum produces biomethane in its 17 own biogas plants in Finland and Sweden and has additionally established long-term partnerships with trusted and certified biogas producers throughout Europe.
Gasum is set to bring renewable e-methane to the market from 2027 onwards.
Gasum’s strategic target is to bring seven terawatt hours (TWh) of renewable gas per year to the Nordic market by 2027.
