The Methanol Institute (MI) and SEA-LNG, key representatives of the methanol and liquefied natural gas (LNG) industries respectively, express their deep concerns following the recent announcement by the European Commission impacting the trade of biomethane and biomethane-based biofuels such as biomethanol, according to the company's release.
The Commission has noted the intention to exclude the automatic certification of biomethane and biomethanol-based fuels produced through mass balance chain of custody in third-party countries outside the EU gas grids within the Union Database (UDB), an IT system to trace the sustainability and origin of renewable fuels place into service in the European market.
This exclusion will severely limit the use of these critical fuels in decarbonizing intra-European and international maritime transport even if these fuels were produced in accordance with EU regulations under the Renewable Energy Directive (RED).
Methanol Institute, as the trade association representing the global interests of the methanol industry, and SEA-LNG, a multi-sector industry coalition promoting the benefits of LNG as a marine fuel, are particularly concerned about the potential impacts of these measures on competitiveness and international trade dynamics.
If this materializes, it will create a trade barrier that threatens to impede the importation of biomethane and biomethanol into the European Union, limiting the availability and increasing the costs of these fuels to the bunkering industry in Europe. Furthermore, it may also disqualify such fuels produced using a mass balance chain of custody from non-EU gas grids, when bunkered in non-European ports for use by vessels calling at European ports from being recognised under the Renewable Energy Directive (RED).
Consequently, these fuels may not be able to generate credits under EU ETS and FuelEU Maritime. In response to these challenges, MI and SEA-LNG call for the recognition of biomethane and biomethanol-based fuels produced using a mass balance chain of custody from non-EU gas grids under the UDB.
Founded in 2016, SEA-LNG is a multi-sector industry coalition that includes shipping companies, ports, LNG suppliers, bunkering companies, infrastructure providers, and original equipment manufacturers (OEMs), working together to demonstrate the benefits of LNG as a marine fuel.