<p data-path-to-node="2"><span data-path-to-node="2,0" class=""><b data-path-to-node="2,0" data-index-in-node="0">BRUSSELS / ROTTERDAM</b> — A groundbreaking legislative subsidy mechanism under consideration by the European Commission could fundamentally invert the economics of maritime propulsion by making liquefied biomethane (bioLNG) cheaper to bunker than conventional marine fuel oil across European deepwater gateways</span><span data-path-to-node="2,1" class=""><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><source-footnote _nghost-ng-c2563806301="" class="ng-star-inserted"><sup _ngcontent-ng-c2563806301="" class="superscript"><!----></sup></source-footnote><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----></span><span data-path-to-node="2,2">.</span></p><p data-path-to-node="3"><span data-path-to-node="3,0">The proposed policy blueprint, developed under the decarbonization funding arms of the EU Emissions Trading System (EU ETS) Innovation Fund and the FuelEU Maritime framework, introduces direct "contracts for difference" (CfD) and targeted bunkering price subsidies for certified low-carbon alternative fuels</span><span data-path-to-node="3,1" class=""><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><source-footnote _nghost-ng-c2563806301="" class="ng-star-inserted"><sup _ngcontent-ng-c2563806301="" class="superscript"><!----></sup></source-footnote><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----></span><span data-path-to-node="3,2">. Under the financial modeling submitted to EU energy and transport directors, the intervention is engineered to bridge the stubborn "green premium" that has historically left drop-in bioLNG priced 40% to 80% higher than Very Low Sulfur Fuel Oil (VLSFO)</span><span data-path-to-node="3,3" class=""><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><source-footnote _nghost-ng-c2563806301="" class="ng-star-inserted"><sup _ngcontent-ng-c2563806301="" class="superscript"><!----></sup></source-footnote><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----></span><span data-path-to-node="3,4">.</span></p><p data-path-to-node="4"><span data-path-to-node="4,0">If ratified by EU member states, the subsidy program will deploy revenues generated from maritime carbon-allowance auctions to directly compensate shipowners and fuel suppliers for the procurement spread between fossil bunkers and certified biological fuels</span><span data-path-to-node="4,1" class=""><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><source-footnote _nghost-ng-c2563806301="" class="ng-star-inserted"><sup _ngcontent-ng-c2563806301="" class="superscript"><!----></sup></source-footnote><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----></span><span data-path-to-node="4,2">. When combined with the rising penalties for non-compliance under FuelEU Maritime—which assesses baseline charges of €2,400 per metric tonne of VLSFO-equivalent energy deficit—the effective net cost of combusting bioLNG would fall below that of untaxed fossil fuel oil for commercial vessels calling at European Economic Area (EEA) ports</span><span data-path-to-node="4,3" class=""><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><source-footnote _nghost-ng-c2563806301="" class="ng-star-inserted"><sup _ngcontent-ng-c2563806301="" class="superscript"><!----></sup></source-footnote><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----></span><span data-path-to-node="4,4">.</span></p><p data-path-to-node="5"><span data-path-to-node="5,0">The commercial implications are profound for operators of dual-fuel tonnage</span><span data-path-to-node="5,1" class=""><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><source-footnote _nghost-ng-c2563806301="" class="ng-star-inserted"><sup _ngcontent-ng-c2563806301="" class="superscript"><!----></sup></source-footnote><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----></span><span data-path-to-node="5,2">. Over the past five years, global ocean carriers and tanker operators have heavily commissioned dual-fuel LNG-capable containerships and bulkers, but many have continued to burn fossil fuel oil on open-ocean legs due to cryogenic fuel premiums</span><span data-path-to-node="5,3" class=""><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><source-footnote _nghost-ng-c2563806301="" class="ng-star-inserted"><sup _ngcontent-ng-c2563806301="" class="superscript"><!----></sup></source-footnote><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----></span><span data-path-to-node="5,4">. Lowering the net bunkering price of bioLNG below VLSFO creates an immediate commercial incentive to maximize bio-blend intakes, rapidly accelerating fleetwide lifecycle greenhouse gas reductions</span><span data-path-to-node="5,5" class=""><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><source-footnote _nghost-ng-c2563806301="" class="ng-star-inserted"><sup _ngcontent-ng-c2563806301="" class="superscript"><!----></sup></source-footnote><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----></span><span data-path-to-node="5,6">.</span></p><p data-path-to-node="6"><span data-path-to-node="6,0">However, European energy logistics federations and clean fuel producers have voiced caution regarding upstream feedstock limitations</span><span data-path-to-node="6,1" class=""><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><source-footnote _nghost-ng-c2563806301="" class="ng-star-inserted"><sup _ngcontent-ng-c2563806301="" class="superscript"><!----></sup></source-footnote><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----></span><span data-path-to-node="6,2">. The scalable production of bioLNG relies heavily on anaerobic digestion of certified agricultural residues and organic municipal waste, and diverting these volumes toward deep-sea maritime transport risks intensifying competition with domestic heating and heavy road haulage</span><span data-path-to-node="6,3" class=""><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><source-footnote _nghost-ng-c2563806301="" class="ng-star-inserted"><sup _ngcontent-ng-c2563806301="" class="superscript"><!----></sup></source-footnote><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----></span><span data-path-to-node="6,4">. Environmental watchdogs have also underscored that subsidies must remain tethered to strict Well-to-Wake (WtW) sustainability criteria and certified digital mass-balance chains of custody—such as ISCC-EU certification—to prevent fraudulent blending or methane leakage</span><span data-path-to-node="6,5" class=""><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><source-footnote _nghost-ng-c2563806301="" class="ng-star-inserted"><sup _ngcontent-ng-c2563806301="" class="superscript"><!----></sup></source-footnote><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----></span><span data-path-to-node="6,6">.</span></p><p data-path-to-node="7"><span data-path-to-node="7,0" class="">Legislative working groups in Brussels indicated that initial pilot allocation rounds could launch ahead of the 2027 compliance cycle, providing ocean liners with a financially viable pathway to satisfy tightening European environmental baselines</span><span data-path-to-node="7,1" class=""><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><source-footnote _nghost-ng-c2563806301="" class="ng-star-inserted"><sup _ngcontent-ng-c2563806301="" class="superscript"><!----></sup></source-footnote><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----></span><span data-path-to-node="7,2" class="">.</span></p>