Carbon emissions consultancy MarinaChain is joining forces with leading global bunkering companies to establish eco-friendly fuel supply solutions in Singapore.
On December 12, MarinaChain, led by CEO Sungyeop Ha, signed an MOU with Switzerland-based Holt Global, Singapore's Panwood, and Hanyu Energy Singapore to collaborate on supplying eco-friendly biofuels in response to the FuelEU Maritime regulation, set to take effect in 2025.
The partnership aims to create a sustainable fuel supply chain to assist domestic and international shipping companies facing increasing carbon regulations. Singapore will serve as the base for delivering global fuel solutions, enabling compliance and fostering a sustainable maritime environment.
Under this agreement, the four companies will establish a green fuel supply network in Singapore and jointly contribute to regulatory compliance and the creation of a sustainable shipping ecosystem.
MarinaChain plans to use this collaboration to develop a biofuel supply chain in Singapore and conduct research on customized biofuel blends (such as B12 and B24) in partnership with global energy trading firm Holt Global.
Leveraging the expertise of Panwood and Hanyu Energy, both with deep-rooted histories in the maritime industry, MarinaChain aims to facilitate pre-compliance preparations for European port entry directly in Singapore, supporting the industry's transition to sustainability.
Currently, MarinaChain offers services such as carbon emissions calculation for ships, EUA purchases, and LCA calculations. With this collaboration, the company aims to solidify its position as a leading regulatory solution provider for the global maritime industry.
FuelEU Maritime, effective from 2025, will regulate the environmental performance of fuels used by ships operating in Europe, evaluating greenhouse gas (GHG) emissions based on their intensity. From next year, all ships operating in Europe must maintain an average GHG intensity below 89.3 to avoid penalties. Considering that commonly used fuels like HFO, LFO, and MDO/MGO have GHG intensities exceeding 90, vessels using traditional fuels will be directly impacted by the regulation.
The regulation will be tightened every five years, lowering the average GHG intensity to 85.7 by 2030, 77.9 by 2035, 69.2 by 2040, and 18.2 by 2050. As a result, even ships powered by LNG or LPG could fall into non-compliance after 2040.
MarinaChain CEO Sungyeop Ha stated, “Biofuels offer the most straightforward solution to meet FuelEU Maritime requirements. By blending biofuels with an average GHG intensity of 15 or lower with traditional fuels, regulatory risks can be significantly mitigated over a five-year period.”
While pooling, which offsets penalties by aggregating compliant and non-compliant ships, is also proposed as an alternative, it may face limitations in the domestic market due to the limited number of eco-friendly ships and the prioritization of penalty offsetting within fleets.
Pooling involves eco-friendly ship operators offering surplus compliance benefits in exchange for compensation from non-compliant ship operators under individual agreements. The compensation structure is expected to align closely with biofuel market prices.
Pooling arrangements are likely to occur first among shipping companies with strong cross-border communication, or operators may opt to save compliance surpluses for use in subsequent years. For national shipping companies, securing overseas partners for pooling agreements in advance will be critical, as pooling may not be a practical alternative for penalty offsetting without such arrangements.
