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T&E: Still time to rectify ‘disastrous’ EU shipping policy

Draft ‘Fuel EU Maritime’ law, which does not provide incentives to invest in e-fuels but promotes LNG and biofuels as an alternative to fuel oil, is an ‘environmental disaster’.

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An EU attempt to promote alternative sustainable fuels for ships would actually lock in the use of fossil fuels for decades, according to leaked documents obtained by the European Federation for Transport and Environment (T&E).

The NGO described the draft ‘Fuel EU Maritime’ law, which does not provide incentives to invest in e-fuels but promotes liquified natural gas (LNG) and biofuels as an alternative to marine fuel oil, as an environmental disaster, it said on Tuesday (29 June).

But with the law due to be published on 14 July, there is still time to rectify this by excluding LNG and crop-based biofuels and support the uptake of green e-fuels like renewable hydrogen and ammonia, says the group.

“It’s not too late to save the world’s first green shipping fuel mandate”, said Delphine Gozillon, shipping policy officer at T&E. “It’s crucial that we have a law that incentivises the uptake of e-fuels. The current draft pits e-fuels against much cheaper polluting fuels, giving them no chance at all to compete on price. The EU should revise the draft to include an e-fuels mandate and make them more cost-attractive through super credits.”

The Commission should propose that half of the greenhouse gas intensity target set by the law should be met by using green e-fuels, thus creating a market for producers of the new technology. The Commission should also help expensive e-fuels become more cost-competitive by counting five times every one-gram carbon intensity improvement achieved by using these green fuels onboard. These multipliers have worked well to push electric cars under CO2 standards; in shipping, they would make it more cost-attractive for ship operators to invest in an e-fuel-powered ship than blending biodiesel in existing fuel oil ships.

T&E also advises that the operators of ships with e-fuels should get additional rewards by being able to sell credits when they overcomply to other ship operators. This would only work if benefits of excess credits are limited to e-fuels ships, which is an approach not taken in the draft text.

The draft policy seen by T&E reveals the European Commission has rejected requiring specific green fuels to be used by shipowners. It has instead gone for a simple “greenhouse gas intensity target”, which it claims provides more flexibility. But, as noted by T&E, the target alone offers no incentives for green hydrogen and ammonia, which are the few truly sustainable fuels currently available at scale.

The measure would use ship fleets’ average carbon intensity in 2020 as a reference value to be progressively lowered, from a 2 percent reduction by 2025 and a 6 percent cut by 2030 to a 75 percent cut by 2050.

But T&E has warned that by not excluding LNG and crop-based biofuels, which are high emitting, it would simply shift emissions from fuel oil today, to fossil gas and dubious biofuels tomorrow.

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More than half (55%) of the energy used by ships calling at EU ports could be LNG and biofuels by 2035, according to T&E’s analysis. This is despite LNG offering minimal emissions reductions and, when burned, releasing methane – a global warming gas up to 36 times more potent than CO2. Most biofuels are worse for the climate than the fuels they replace, and those that do offer emissions savings are not available at scale.

As reported in the Guardian, of the 136 responses to a consultation, 121 were either shipowners or ship managers, energy producers and fuel suppliers, short sea shipping companies, shipbuilding and marine equipment manufacturers or logistics suppliers, shippers and cargo owners.

Delphine Gozillon concluded: “As it stands, the draft law is far not fit for Europe’s climate objectives. But quick fixes are still possible, with strong safeguards against unsustainable fuels and dedicated tools to kick start e-fuels in shipping.”

The Commission is due to publish the initiative on July 14 as a part of its Fit for 55 package, aimed at achieving the bloc’s target of cutting emissions by 55 percent by 2030.

Related: LEAKED: EU’s supposedly ‘green’ shipping law will lock in fossil fuels, says T&E
Related: T&E: UN greenwashes shipping with hopelessly weak carbon efficiency target

 

Photo credit: Maksym Kaharlytskyi on Unsplash
Published: 1 July, 2021

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Alternative Fuels

Yang Ming orders six LNG dual-fuel, ammonia-ready containerships from Hanwha Ocean

Each of the six new vessels will have a capacity of up to 13,650 TEU and feature LNG dual-fuel propulsion and Ammonia Fuel Ready specifications.

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Yang Ming orders six LNG dual-fuel, ammonia-ready containerships from Hanwha Ocean

Taiwanese shipping firm Yang Ming Marine Transport Corporation (Yang Ming) and South Korean shipbuilder Hanwha Ocean on Wednesday (2 September) signed a shipbuilding contract for six 13,000 TEU class LNG dual-fuel container vessels. 

The contract was signed by Dr. Chuck Tsai, Chairman of Yang Ming, and Mr. Charles Kim, CEO of Hanwha Ocean. The vessels are scheduled for delivery between 2028 and 2029. 

They will complement Yang Ming’s existing fleet of 10,000+ TEU vessels and serve as key vessels on East-West services, with deployment flexibility across trade lanes connecting Asia with the East and West Coasts of North America, South America, and the Mediterranean. 

Each of the six new vessels will have a capacity of up to 13,650 TEU and feature LNG dual-fuel propulsion and Ammonia Fuel Ready specifications.

“As Yang Ming transitions toward net-zero emissions, LNG provides a relatively mature and economically viable alternative fuel solution, capable of reducing greenhouse gas emissions by approximately 20%,” the company said. 

“At the same time, ammonia can serve as a carbon-free fuel by utilising converted LNG storage facilities, while offering relatively lower conversion costs and comparatively well-developed supply chains and infrastructure. The Ammonia Fuel Ready design will therefore provide Yang Ming with greater flexibility in responding to increasingly stringent international regulations on greenhouse gas emissions.”

In addition, the vessels will be equipped with Type B LNG fuel tanks with a design pressure of 1.0 bar to enhance the safety and efficiency of LNG operations, together with a range of energy-saving technologies, including Wind Shields, Rudder Bulbs, Pre-Swirl Stators, and Shore Power Systems. Smart ship technologies and cybersecurity protection features will also be incorporated to enhance operational efficiency, safety, and reliability while effectively reducing fuel consumption and greenhouse gas emissions.

Deliveries under Yang Ming’s next-generation fleet optimization plan commenced earlier this year. By 2030, a total of 24 new vessels are expected to enter service. 

This includes 18 LNG dual-fuel vessels—comprising five 15,500 TEU, seven 16,000 TEU, and the six 13,000 TEU vessels under this contract—alongside six 8,000 TEU methanol dual-fuel-ready ships. 

 

Photo credit: Yang Ming Marine Transport
Published: 4 September, 2026

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LR, China’s MARIC unveil tanker concept ready for three future bunker fuels

Both secured AiP for a new 114,000 DWT product and crude oil tanker designed to accommodate future conversion to LNG, methanol or ammonia.

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LR, China’s MARIC unveil tanker concept ready for three future bunker fuels

Lloyd’s Register (LR) and the Marine Design and Research Institute of China (MARIC) on Thursday (3 September) have secured Approval in Principle (AiP) for a new 114,000 DWT product and crude oil tanker designed to accommodate future conversion to LNG, methanol or ammonia.

Announced at SMM 2026, the concept addresses one of the biggest investment challenges facing shipping today: the need to develop vessels and capabilities that can support a range of alternative fuel options and pathways as technologies, infrastructure and regulations evolve.

While LNG is already a mature fuel pathway, methanol and ammonia remain at an earlier stage of development, with questions around global fuel availability, infrastructure development, economics and long-term adoption.

The 114,000 DWT tanker concept has been designed as a product and crude oil carrier that can accommodate future conversion to LNG, methanol or ammonia as technologies, regulations and fuel supply chains mature. By incorporating conversion readiness at the design stage, the concept aims to reduce future retrofit complexity and provide owners with greater confidence when planning long-term fleet investments.

The design concept was reviewed against LR’s July 2026 class rules and regulations, including requirements relating to ships using gases and other low-flashpoint fuels, alongside relevant IACS Common Structural Rules for oil tankers. Final classification and statutory approval remain subject to full compliance with all applicable rules and regulations.

Theo Kourmpelis, Global Business Director for Tankers, Lloyd’s Register, said: “Shipowners are being asked to make major investment decisions today despite continued uncertainty around which fuels will dominate in the decades ahead. Alternative fuel solutions each offer potential pathways to compliance, but fuel infrastructure, regulation and economics continue to evolve at different speeds around the world.

“Designs that preserve flexibility will be critical in helping owners manage risk while preparing for multiple future scenarios.”

Si Nan, Marine & Offshore Marketing Department Vice Director, MARIC, said: “As the industry explores different decarbonisation pathways, shipowners need vessel designs that can adapt alongside technological and regulatory developments. This concept was developed specifically to provide greater fuel flexibility and long-term resilience, allowing owners to respond to changing market requirements without being locked into a single fuel strategy.

“Receiving Approval in Principle from Lloyd’s Register is an important milestone that validates the design concept and supports its future development.”

 

Photo credit: Lloyd’s Register
Published: 4 September, 2026

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DNV: Alternative-fuelled vessel orders hit highest monthly level since October 2024

LNG-fuelled vessels accounted for the vast majority of August activity while the strong summer performance marked a significant acceleration in ordering activity after a relatively slow start to the year.

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DNV: Alternative-fuelled vessel orders hit highest monthly level since October 2024

Latest data from classification society DNV’s Alternative Fuels Insight (AFI) platform alternative-fuelled vessel ordering was strong in August, with 52 new vessels added to the platform.

This is the highest monthly total since October 2024 and follows another active month in July, when 47 vessels were added to the database.

LNG-fuelled vessels accounted for the vast majority of August activity, with 46 orders recorded. The container segment led the way with 30 orders, while the car carrier segment contributed a further 12 LNG-fuelled vessels. In addition, four ethanol-fuelled bulk carriers and two hydrogen-powered bulk carriers were added during the month, as well as one LNG bunker vessel.

The strong summer performance marked a significant acceleration in ordering activity after a relatively slow start to the year. In total, 242 alternative-fuelled vessel orders have been placed in the first eight months of 2026, representing a 27% increase compared with the same period in 2025.

LNG remains the dominant fuel choice, accounting for 63% of all alternative-fuelled vessel orders registered so far this year. Container vessels represent the largest share of these LNG orders (59%), followed by car carriers (30%).

Jason Stefanatos, Global Decarbonization Director at DNV Maritime, said: “The past two months have been particularly strong for alternative-fuelled vessel ordering, with August recording the highest monthly total we’ve seen since October 2024. This has helped lift year-to-date orders to a level well above the same period last year.

“LNG remains the leading fuel choice, driven largely by activity in the container and car carrier segments. These sectors have been among the earliest adopters of alternative fuels, supported by predictable liner operations and increasing demand from cargo owners to reduce emissions across supply chains. 

“For many owners, LNG offers a combination of emissions reductions, fuel availability and future flexibility while the longer-term fuel landscape continues to evolve. 

“At the same time, the latest figures include orders for ethanol- and hydrogen-fuelled vessels, highlighting that owners continue to explore a range of decarbonization pathways. Different segments are making different fuel choices, but the overall level of activity demonstrates continued investment in lower-emission shipping.”

Screenshot 2026 09 04 at 12.29.26 PM Screenshot 2026 09 04 at 12.29.36 PM

 

Photo credit: DNV
Published: 4 September, 2026

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