FUELS

Shipping fuel choices: navigating a fragmented landscape 

The maritime fuel landscape is undergoing a rapid transformation. Traditional shipping fuels are being phased out, and a range of alternatives, with potentially lower greenhouse gas (GHG) intensity, are emerging – each with its own benefits, risks, and infrastructure challenges. 

Which alternative shipping fuels should be considered for maritime decarbonization? 

Fuels such as LNG, liquid biofuels (e.g. biodiesel), LPG, and methanol can offer immediate reductions in greenhouse gas emissions and are supported by growing infrastructure and regulatory clarity. However, their long-term viability depends on the availability of green variants and evolving policy frameworks that may favour deeper emission reductions. 

Low-GHG fuels – including green ammonia, hydrogen, e-fuels, and biofuels – are expected to play a central role in meeting future fuel decarbonization targets. Yet their availability, cost, and safety implications remain uncertain. Fuel cells are also gaining attention as a high-efficiency solution, particularly for short-sea shipping. 

Long-term fuel offtake agreements are also emerging as a way to de-risk compliance and secure access to low-GHG fuels. 

FuelEU Maritime recognizes the role of certified sustainable shipping fuels. Documentation such as Proof of Sustainability (PoS) and Fuel Lifecycle Labels (FLL) will be essential to unlock regulatory benefits and avoid default fossil fuel penalties. Adopting low-GHG fuels can generate compliance surpluses that may be monetized through pooling mechanisms.