Dutch biofuel supplier FincoEnergies has entered the FuelEU Maritime compliance market with a new pooling offering by which it will offer a discount to customers bunkering its biofuels and make the ‘compliance surpluses’ generated by those ships available to under-compliant vessels.
The concept, launched today (16 April), is based on contracts with ships on liner trades, including container, Ro-Ro and cruise vessels. Those ‘compliance generating’ ships receive a reduced price for their sustainable biofuels in exchange for their surplus pooling rights, which enables FincoEnergies to pool those surpluses with other vessels that have a compliance deficit.
‘Ideally you have a term contract for biofuels, even B100 for the entire year, on vessels that sail on a liner business,’ the Commercial Director of FincoEnergies, Johannes Schurmann, explained in an interview with Bunkerspot.
‘Because we supply the biofuel ourselves, we know quite well the amount of surplus that will be generated on those vessels,’ he added.
Contracts with ‘compliance-generating’ vessels have already been agreed, Schurmann confirmed, without revealing the names or the number of companies that have already committed to the pool.
‘The supply contracts are there, and for the deficit contracts we are in negotiation with actually quite a lot of customers,’ he said.
‘There is a lot of interest in the market for the proposition we have, and the main reason is that the buyers really like the fact that it is linked to our physical position in the chain and therefore the security of supply,’ he added. ‘That is considered a big plus in the market.’
The price at which FincoEnergies will make compliance surpluses available for its deficit customers will be linked to the price of biofuels and that of fossil fuels, Schurmann indicated.
‘Basically, it means that if you would buy biofuel from us, the abatement cost should be somewhat similar as obtaining surplus from us,’ he highlighted.
He expects the offering to be particularly attractive for bulkers and tankers engaged in the tramp trade, enabling them to achieve compliance through biofuels even if they don’t call ARA ports where GoodFuels, FincoEnergies’ biofuels brand, operates.
The new offering is also an opportunity for the company to increase the physical volumes delivered and consolidate biofuel demand for FuelEU Maritime compliance, Schurmann mentioned.
FincoEnergies, which partnered with classification society Lloyd’s Register to develop the service, will organise and manage the pool verification with verifiers and compliance entities at the end of the reporting period.
Photo: Johannes Schurmann, Commercial Director of FincoEnergies (credit: FincoEnergies)
