The Baltic Exchange has recently expanded its Emissions Calculator by incorporating biofuel blends, including biodiesel, bio-LNG, bio-LPG, green methanol, green hydrogen, and green ammonia. These additions, reflecting both green fuel options and blend possibilities, aim to provide a comprehensive overview of cost implications related to various fuel choices. The Baltic Exchange’s FuelEU Maritime calculator is designed to help stakeholders assess how changes in fuel selection can impact voyage cost estimates. According to Martin Crawford-Brunt, Emissions Lead at Baltic Exchange, the initial costs of green fuels are expected to be high, which may lead to their blending with fossil-derived fuels to comply with the new FuelEU Maritime regulation.
To address this challenge and based on industry feedback, the calculator now features a blending capability. Crawford-Brunt emphasized that this tool simplifies the complex regulatory landscape and allows users to swiftly estimate voyage costs for different fuel and blend alternatives. The calculations are anchored to the Baltic standard ship and route types, typically characterized by the use of VLSFO during navigation and MGO for port consumption. For example, a 115,000 dwt LR2 clean tanker on the TC20 Baltic route could save nearly $30,000 in fuel costs by using a 35% B100 blend, despite a rise in overall fuel expenses.
The savings from regulatory compliance outweigh the cost increase associated with the green blend, showing that as the ratio of biodiesel to VLSFO rises, savings on fuel also increase. Recent updates to the calculator allow users to experiment with various green fuel blend percentages, considering cost premiums and emissions profiles. Crawford-Brunt stressed that regulations like FuelEU Maritime and EU ETS will increasingly affect voyage costs, emphasizing the importance of being able to quickly estimate potential additional charges to avoid significant financial penalties. The Baltic Exchange aims to provide essential resources and tools to its members and the broader market as the shipping industry moves toward a more sustainable future.