New software for FuelEU compliance

German emissions management specialist, zero44, has unveiled new FuelEU Maritime software in preparation for the new regulations which are due to enter force on January 1st. The software, designed for shipowners, managers and charterers, comes as a separate module to the company’s existing software for EU Emissions Trading System compliance and Carbon Intensity Indicator assessments.

Shipping companies that fail to adopt FuelEU strategies ahead of the new regulations will face substantial penalties next year. These will increase steadily over the balance of this decade and beyond.

There are several ways to minimise exposure, however, and the software is designed to support the related decision-making process. Possible compliance options include adopting more sustainable marine fuels, or  pooling vessel emissions, either within a fleet or with third parties, to ensure that vessels that would otherwise incur penalties are offset by high-performing ships.

Another option could be ‘borrowing’ where a ship operator borrows expected future over-achievement of emissions targets, known as a ‘compliance balance surplus’. Another possibility is to ‘bank’ an emissions shortfall and carry it forward to the following year.

Companies that choose to do nothing will incur substantial penalties for using shipping’s traditional fuels. Whether or not they can pass these on to charterers is likely to generate a new revenue stream for maritime lawyers.

The zero44 software is designed to take account of a wide range of variables to identify the possible options and support decision-making. The system uses historical ship performance data and machine-learning to predict future emissions and assess the possible strategies. With feedback from clients including MPC Container Ships, Minship Shipmanagement, and Union Bulk, the system enables users to compare the relative costs and merits of various options.

Co-founder and managing director of zero44, Frederike Hesse, commented: “Some players in our industry are currently giving the impression that pooling is the best way to achieve FuelEU compliance. This is far too short-sighted and does not do justice to the complexity of FuelEU Maritime and the volatility of the market environment.

“Instead, the goal must be for every shipping company, every ship manager, and every charterer, to have a full overview of all economic parameters at all times,” he continued. “Only on this basis can truly informed decisions be made – and whether these ultimately fall in favour of pooling, penalty payments, or another method, will always change depending on the context.”

The software firm will officially launch the new system at SMM in Hamburg next week.