Greek ship owner Star Bulk said it expects to meet the 2025 FuelEU regulation without issue.
Starting on 1 January 2025, the FuelEU regulation will require that vessel fleets travelling in EU territorial waters cap their lifecycle greenhouse gases (GHG) at 89.34 grams of CO2-equivalent per megajoule through 2029. The company plans to meet this regulation by burning B30 biofuel blends on some of its vessels. This will GHG credits for its remaining vessels that trade in and out of EU territorial waters.
Star Bulk does not expect to have difficulty sourcing the B30, but warned that sourcing it could become a challenge from 2027 onward.
The International Maritime Organization (IMO) should update its GHG emissions regulation for international shipping to include lifecycle emissions from the current emissions from combustion around mid-2027. The organization will require that vessels globally reduce their lifecycle GHG by at least 20pc by 2030 and by at least 70pc by 2040, compared with a 2008 baseline, and reach net-zero by 2050. This will require additional quantities of biofuel. Unlike the FuelEU regulation which applies to vessel fleets or pools travelling in EU waters, the IMO regulation will apply to individual vessels travelling in international waters.
Star Bulk burned 832,371 of marine fuel in 2023, down 4pc compared with 2022. Of this quantity, 708,406t was high-sulphur fuel oil (HSFO), 36,598t very low-sulphur fuel oil (VLSFO) and 87,367t marine gasoil. About 95pc of Star Bulk's vessel fleet is outfitted with marine exhaust scrubbers. The scrubbers allow its vessels to burn HSFO in international waters. Vessels that do not have scrubbers are required by the IMO to burn marine fuel with up to 0.5pc sulphur content maximum, such as VLSFO in international waters.
Star Bulk's vessels emitted 2.6mn t of CO2 in 2023, down 4pc from 2022. The company is aiming to reduce its fleet's carbon intensity ratio by 12pc by 2026, from 2019 baseline year, consistent with the IMO's carbon intensity indicator targets. In 2023, Star Bulk achieved 4.32pc reduction relative to 2019. The reduction was largely due to improved vessel performance monitoring, hull cleaning, and optimization of weather and routing, the company said.
As of the end of September, Star Bulk owned 155 vessels, chartered 10 vessels and had five newbuild vessels on order to be delivered in 2025 and 2026. In April, the company finalized its merger with Eagle Bulk Shipping.
