The Baltic Exchange has released its new FuelEU Maritime calculator, which includes green fuels such as biodiesel, bio-LNG, bio-LPG, green methanol, green hydrogen, and green ammonia as options. This tool allows users to estimate the cost implications of selecting these green fuels or blends, relative to the Baltic standard for a specific route. The calculator is designed to help the market factor in the change in fuel selection or potentially contemplated fuels into voyage cost estimates.
The addition of blend options is significant, as green fuels are expected to be expensive initially and will likely be blended with fossil-derived fuels to achieve compliance with the new FuelEU Maritime regulation. The calculator can now handle this scenario, providing users with a more accurate estimate of the cost implications.
The tool is particularly important in the context of regulations such as FuelEU Maritime and the EU Emissions Trading System (EU ETS), which will have a significant impact on voyage costs to and from the EU. The Baltic Exchange aims to help the market comply with these regulations by providing accurate and reliable fuel cost estimates, avoiding financial penalties for non-compliance.
The FuelEU Maritime calculator is a valuable resource for contracting parties, their brokers, and traders, as it enables them to quickly estimate the additional costs associated with using green fuels or blends. This tool is a step towards a more sustainable future for shipping, as the industry works to reduce its environmental impact.