Furetank Leads Shipping Emission Cuts with Biogas
In a significant move towards sustainable shipping, Swedish tanker company Furetank is pioneering efforts to reduce greenhouse gas emissions through innovative biogas operations. The company has launched a new subsidiary, CO2mpliance, aimed at facilitating emissions trading among shipping firms under the recently enacted FuelEU Maritime regulation. This initiative is part of a broader strategy to transition the maritime industry to fossil-free operations by 2050.
FuelEU Maritime Regulation: A Game Changer
The FuelEU Maritime regulation, which took effect at the beginning of the year, mandates that commercial vessels operating within the European Union gradually decrease their greenhouse gas emissions. The initial target is a 2% reduction from 2020 levels by 2029, with a more ambitious goal of an 80% reduction by 2050. This regulation introduces various pathways for compliance, including the adoption of renewable fuels and the option to trade surplus emission reductions. Companies that fail to meet these requirements will face substantial penalties, creating a financial incentive for those who successfully transition to greener practices.
Furetank is well-positioned to capitalize on these changes. The company has invested in a fleet of dual-fuel tankers, known as the Vinga series, which can operate on liquefied methane. This technology allows for an immediate shift to biofuels without the need for extensive modifications. Furetank has secured a contract for large-scale deliveries of mass-balanced biomethane, which will power its vessels trading in the EU throughout 2025. This proactive approach not only aligns with regulatory requirements but also enables the company to trade surplus emission reductions, benefiting both itself and other shipping operators.
CO2mpliance: Facilitating Emission Trading
Furetank’s new subsidiary, CO2mpliance, is designed to assist other shipping companies in navigating the complexities of the FuelEU regulation. The company will manage compliance for clients, helping them either sell surplus emission reductions or purchase credits if they are unable to meet their own reduction targets. This service is particularly valuable for operators who are ahead of the curve and wish to monetize their efforts, as well as those who need to catch up.
Viktoria Höglund, CEO of CO2mpliance, emphasized the company’s commitment to environmental leadership. “Furetank has a tradition of creating its own functions demanded by the market,” she stated. “We are now stepping into this new market created by the EU, equipped with the expertise necessary to conduct transactions and ensure compliance with the new regulations.”
Furetank’s proactive stance on environmental regulations dates back to the 1980s, when it invested in double-hulled tanker vessels long before they became mandatory. This history of innovation and foresight underscores the company’s strategy to embrace change rather than wait for market conditions to dictate its actions. As the shipping industry faces increasing pressure to reduce emissions, Furetank’s initiatives may serve as a model for others aiming to achieve sustainability in maritime operations.
