Emissions pooling: Bio-LNG powers emission reductions across European shipping

FuelEU Maritime pooling leverages LNG and bio-LNG use for emission reductions across the whole European maritime sector. It allows for shipowners to adapt to the regulation in an environment of scarce availability of alternative fuels.

The EU’s FuelEU Maritime regulation has been in force since the beginning of 2025. The aim of the regulation is to cut European maritime greenhouse gas (GHG) emissions by encouraging renewable and low-carbon fuel use.

The regulation applies to all ships of 5000 gross t and over calling at EU ports, regardless of their flag. At the end of 2025, shipowners must show that the carbon intensity of the fuel used during the year has reduced by 2%. In time, the required reduction will increase incrementally until it reaches 80% by 2050. Non-compliance results in fines based on GHG emissions.

The good news for gas-powered shipowners is that running ships on LNG mostly covers the emission cuts needed during the first years of the regulation. This is because LNG’s lifecycle carbon dioxide emissions are 20% lower than traditional maritime fuels such as marine gas oil (MGO). However, many other shipowners face concerns about fleet lifespan and compatibility, as well as the availability of alternative fuels as supplies and bunker locations remain limited.

Luckily, the FuelEU Maritime regulation allows shipping companies to voluntarily pool emissions between vessels to support compliance efforts. In this framework, vessels with surplus compliance can offset the GHG intensity requirements of other vessels by sharing compliance.

Emissions may be pooled among two or more ships verified by the same body, including ships managed by different companies, provided certain conditions are met. One requirement is that the total pooled compliance must remain positive; pooling cannot result in a greater deficit after emissions are combined.

To sum up, pooling enables shipowners who have the ability to reduce emissions to also lower emissions on behalf of those who are unable. This benefits everyone – including compliance generators and off-takers as well as the climate.

Bio-LNG use enables generous emission reductions

Pooling can also be offered as a service. This means that the pool of vessels is managed by a third party that ensures that the pool is in balance and all ships within the pool are allocated the right amount of emission reductions required by the regulation at the end of the year. For instance, Nordic energy company, Gasum, offers pooling as a service to all ships calling at EU ports. In Gasum’s pool, designated vessels run on bio-LNG in order to generate compliance on behalf of under-compliant vessels.

Gasum has partnered with shipping companies such as Viking Line and Wallenius Sol to use their LNG-powered vessels as compliance generators in Gasum’s pool by switching the vessels to using bio-LNG.

Transport sector eyeing limited renewable fuel resources

The FuelEU Maritime package is not the only regulatory development shaking up the maritime sector in the coming years. Although decisions were postponed in October 2025, the International Maritime Organization (IMO) still has its own strategy and ambitious targets for reducing maritime emissions globally, with a horizon towards 2028 for the first cuts and a net-zero emission target in 2050.

With continuously tightening regulations, as well as increasing demand for low-emission transports from end customers, demand for biofuels is set to increase dramatically in the maritime sector in coming years. In addition, aviation and land transport are also vying for globally limited renewable fuel resources.

Combining all these factors together, experts estimate that there might be a significant shortage of biofuels and other alternative fuels from 2030 onwards. Faced with this challenge, Gasum has been developing a comprehensive biogas value chain and LNG infrastructure to meet the needs of customers going forward.

Peace of mind with secured bio-LNG availability

Although biofuel availability might limit the capacity and scalability of commercial FuelEU Maritime pools, once a shipowner has signed on to a third-party’s pool, measures can be put in place to guarantee peace of mind. For example, Gasum ensures that customers are always compliant at the end of the verification period – even if this means paying a penalty on behalf of the customer.

For now, pooling is the right answer for shipping companies wanting an easy and reliable way to fulfil the requirements of the regulation. However, during the course of the next 20 years, as the regulation tightens, shipowners need to think about what their strategy will be to tackle the 80% reduction in emissions demanded by 2050.

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Read the article online at: https://www.lngindustry.com/special-reports/29122025/emissions-pooling-bio-lng-powers-emission-reductions-across-european-shipping/