Shipowners need to rethink several common assumptions around FuelEU Maritime and biofuels, according to maritime software and data services firm NAPA.

The company has outlined seven common myths facing the industry, with FuelEU Maritime and biofuels among the areas where it believes operators need to reassess their approach, according to an article published on its website.

FuelEU Maritime, which entered into force on 1 January 2025 as part of the EU's Fit for 55 legislative package, sets progressive limits on the greenhouse gas intensity of energy used by ships calling at EU ports. The regulation applies to vessels above 5,000 gross tonnes regardless of flag, covering both intra-EU and extra-EU voyages, and is designed to steer the sector toward low- and zero-carbon fuels.

Ossi Mettälä, product manager for shipping solutions at NAPA, said there is no longer plenty of time to develop a FuelEU strategy, with the regulation already in its implementation phase and compliance requirements set to tighten over time. The GHG intensity limit starts at a 2% reduction in 2025 and rises in steps to a 6% reduction by 2030, with further increases through 2050. He noted that operators achieving over-compliance can create commercial value through banking and pooling mechanisms.

FuelEU Maritime Is a Commercial and Operational Strategy Question

Banking allows surplus compliance to be carried forward, while pooling enables vessels to combine compliance balances to offset individual deficits or surpluses.

Mettälä also challenged the belief that biofuels are always too expensive. While their spot prices are generally higher than conventional fossil fuels, he said operators need to consider the wider cost of compliance. For vessels operating within or into the EU, EU ETS costs and FuelEU Maritime penalties can alter the economics of biofuels and make them commercially viable in certain cases. Maritime emissions have been phased into the EU Emissions Trading System since January 2024, requiring shipowners to surrender allowances for a growing share of their reported CO2 emissions on routes involving EU ports.

"Essentially, in a changing regulatory environment, looking only at headline fuel cost can lead to the wrong conclusion," Mettälä said.

Weather Routing and Wind Propulsion

The remaining five myths cover weather routing, wind-assisted propulsion systems (WAPS), and older vessels.

Mettälä said weather routing is no longer too complex or time-consuming for crews. Modern systems combine weather forecasts, vessel performance models, and operational restrictions to optimise voyages within minutes.

NAPA also rejected the idea that weather routing is unnecessary on fixed or short-sea routes. Changing weather and sea conditions can affect safety, arrival times, and fuel consumption even on repeat voyages.

Mettälä said WAPS have moved beyond the experimental stage, with fuel savings already being recorded depending on the technology, vessel, and operating conditions. A growing number of shipowners have begun installing rotor sails, hard sails, and other wind-assist technologies as one route to lowering fuel use and emissions. Weather routing can help maximise those savings by identifying favourable wind conditions. He added that owners should assess the expected payback of WAPS for each vessel before installation and independently verify savings before deploying the technology across a wider fleet.

Older Vessels and Performance Monitoring

NAPA also challenged the view that older ships do not need investment in performance monitoring. Older tonnage remains subject to requirements including the IMO Carbon Intensity Indicator and FuelEU Maritime. The CII, which took effect in 2023, rates ships from A to E based on their operational carbon intensity and requires continuous improvement for lower-rated vessels. Performance monitoring can identify where efficiency is being lost and help owners improve existing vessels without relying solely on costly retrofits, alternative fuels, or early replacement.

Mettälä said the industry should focus on practical technology, reliable data, and vessel-specific analysis when making decarbonisation decisions, rather than relying on assumptions about fuel prices or the capabilities of existing technologies.

Mettälä told Ship & Bunker in an interview last year that NAPA is seeing evolving demand from the shipping industry for emissions management solutions as regulators including the EU tighten their requirements.

Source: Ship & Bunker