Vessels must use at least 2% of renewable fuels of non-biological origin (RFNBOs) by 2034
Danish marine fuel supplier and trading firm Bunker Holding has struck an agreement with Canada-based ammonia and synthetic fuels producer NeoGreen Hydrogen with an ambition of bringing green ammonia to the bunker market, Engine said.
The European Union’s (EU) FuelEU Maritime regulation aims to incentivise the use of low-carbon fuels and renewable energy on ships to reduce global carbon footprint and greenhouse gas (GHG) emissions from the shipping sector.
“With the EU’s FuelEU Maritime regulations due to enter into force in 2025 and the expectation of new IMO regulations in 2027, pressure is building on the shipping industry to prepare for a low-carbon future, with ammonia and e-methanol being two of the most likely future fuels for the industry,” Bunker Holding said.
Vessels must use at least 2% of renewable fuels of non-biological origin (RFNBOs) by 2034. These are typically green hydrogen-based fuels, like green ammonia, green hydrogen and green synthetic methanol. The EU will also reward early adopters of certain sustainable fuels over others, such as green ammonia over biofuels.
Meanwhile, the companies have not disclosed any information about the specific production location or the quantity of green ammonia that will be produced as a part of this collaboration. Additionally, there are no details on whether Bunker Holding will physically supply these synthetic fuels to ships in ports or solely engage in trading and marketing activities for NeoGreen Hydrogen.
“Overcoming logistical and delivery challenges is key to assuring long-term offtake of new, environmentally friendly fuels,” Bunker Holding added. It will also “support the marketing of NeoGreen’s products to its global client base,” the bunker firm said.