Our Way 1
CUTTING COSTS BY BEING AHEAD T he maritime sector
has gradually begun exploring alternative fuels—not due to a strong internal preference, but primarily as a response to stricter environmental regulations, such as sulphur limits and the introduction of SECA* and ECA* zones. Historically, the industry has primarily focused on cost efficiency over sustainability. As regulatory pressure increases, however, we’re now navigating a more complex fuel landscape, with no clear frontrunner. Choices continue to shift based on cost, availability, sustainability, and technological development, as well as safety concerns. “For years, there has been a tendency in the shipping industry to regard biofuels as an interim measure while waiting for a ‘silver bullet’ solution. But they are one of the most viable options we have today,” says Elisabet Liljeblad, Sustainability Specialist Soya Group. When it comes to biodiesel, a key strength is its drop-in compatibility with existing infrastructure. “Biodiesel has been used in the automotive and industrial sectors for years, so there’s already an extensive knowledge and practical experience,” says Elisabet. “It doesn’t require any massive capital investment in new engine technologies, which makes it an attractive option for companies looking to decarbonize now, rather than later.” Biogas offers another route “The advantage of biogas is that it can be mixed in any proportion with LNG, without needing separate tanks or additional technical adjustments,” says Carl Fagergren, Naval Architect at Wallenius Marine. “However, it does require large cryogenic tanks, which reduce cargo space—something shipowners must factor in.” Elisabet Liljeblad Sustainability Specialist Soya Group Methanol and ammonia have gained traction due to their potential for netzero emissions and reduced pollutants like NOx and SOx. However, both come with specific limitations. Ammonia is associated with substantial toxicity challenges, and the risks raise significant safety concerns. Accidents and leaks can pose serious dangers not only in the immediate vicinity but also in surrounding areas, depending on the conditions. An accident near a populated city could have devastating consequences. Carl Fagergren Naval Architect Wallenius Marine How has UECC’s proactive approach strengthened its financial position? And the energy required to produce electrofuels—whether methanol, ammonia, or e-diesel—is substantial. “With a system perspective in mind, we need to ask ourselves if dedicating vast amounts of the limited green electricity to produce these fuels really is the best approach,” argues Elisabet. As Carl stresses, none of these fuels— whether bio-based or synthetic—come without trade-offs. Feedstock limitations, energy intensity in production, and competition from other sectors make it unlikely that a single fuel will dominate. RATHER THAN BETTING on a single solution, Carl advocates for adaptable ship design— such as dual-fuel engines and the integration of wind-assisted propulsion. “That kind of flexibility helps reduce dependency on any one fuel type and provides a hedge against fluctuating costs and availability,” he says. “A more realistic path forward involves a combination of multiple fuel types as well as technical and operational measures such as speed reduction, wind assistance, and electrification for short routes.” A successful transition also depends on collaboration. “It will take long-term partnerships to drive investment and scale up sustainable fuels,” says Elisabet. “Some solutions can benefit more than one sector—like the HEFA* process, which produces both SAF* for aviation and biodiesel for shipping.” “With the introduction of the FuelEU Maritime regulation on January 1st, we were already well positioned. However, many shipping companies weren’t as prepared, creating opportunities for forward-thinking companies like ours to recover alternative fuel costs from those facing penalties or needing to buy surplus compliance.” Daniel Gent Energy & Sustainability Manager UECC What is the most important step in preparing for the energy transition? “With tens of thousands of conventionally fuelled vessels now seeking drop-in fuels, supply is tight. We constantly explore new alternatives, including LNG replacements. Stricter regulations are coming, so securing fuel now is crucial. In 5—10 years, these fuels will be highly valuable, making it essential to establish ourselves as a key player today.” Residual materials from the forestry sector can be utilised for the production of biofuel. By staying ahead of regulations, UECC has managed to minimize costs and avoid penalties through strategic investments in LNG, biofuels, and emissions reduction initiatives. Daniel Gent, Energy & Sustainability Manager at UECC, explains how their forward-thinking strategy has ensured stability without passing expenses on to customers. “A decade ago, we committed to a new fuel strategy by investing in LNG dual-fuel vessels. Five years later, we expanded this approach to our older vessels, introducing biofuels as drop-in alternatives across the fleet. Today, our expertise and framework allow us to swiftly adapt to any new biofuel entering the market.” OUR WAY 1/2025 23