Subsidised bio-LNG and other types of alternative fuels are deemed eligible under FuelEU Maritime Regulation, according to sources with knowledge of the matter.
FuelEU allows emissions reductions supported under other legal frameworks, such as the support schemes under RED, in order to encourage greater investment in less carbon-intensive marine fuels.
Under Directive (EU) 2018/2001 (RED), the greenhouse gas (GHG) reductions are counted towards member states' targets, while under FuelEU the targets are set to shipping companies.
Excluding subsidised marine fuels may otherwise lead to competitive disadvantages for smaller sectors, such as European biomethane.
The European Commission has not yet issued an official statement.
Demand for bio-LNG has risen sharply this year with the start of FuelEU Maritime in January, requiring ship-owners to reduce their GHG emissions by 2pc in 2025, with targets steadily rising to 80pc in 2050.
Subsidised, bunker dob bio-LNG in Northwest Europe was last assessed at €78.09/MWh ($89.55/MWh) on Thursday, while its unsubsidised counterpart was assessed at €93.59/MWh.
