Executive Summary
The maritime industry is facing significant regulatory changes aimed at reducing greenhouse gas (GHG) emissions. The latest EU regulations, particularly the updated Monitoring, Reporting, and Verification (MRV) requirements, are set to impact offshore vessels starting from January 1, 2025. These regulations mandate comprehensive emissions monitoring and reporting for vessels with a gross tonnage (GT) of 400 and above. Additionally, offshore vessels with a GT of 5,000 or more will be included in the Emissions Trading System (ETS) starting from January 1, 2027. Shipowners must prepare for these changes to ensure compliance and leverage the opportunities for innovation and sustainability.

Key Developments
Updated MRV Requirements: 
Starting from January 1, 2025, offshore vessels with a gross tonnage (GT) of 400 and above will be required to comply with the EU MRV regulations. This extension ensures that emissions data from these vessels are accurately reported and verified, providing a reliable basis for future regulatory measures.

Inclusion in the ETS: 
Offshore vessels with a GT of 5,000 or more will be included in the EU ETS starting from January 1, 2027. The ETS operates on a “cap and trade” principle, where a limit is set on the total amount of GHG emissions, and companies can trade allowances. This system incentivizes shipowners to reduce their carbon footprint.

Potential Outcomes and Consequences
1. Compliance and Reporting Requirements: 
Shipowners will need to invest in systems and processes to accurately monitor and report emissions as required by the MRV regulations. While this does not directly imply purchasing emission allowances, it involves ensuring accurate data collection and verification, which may require operational adjustments and investments in monitoring technologies.

2. Increased Costs from ETS: 
If offshore vessels are included in the ETS from 2027, shipowners will need to purchase emission allowances, which could increase operational costs. However, these costs can be offset by the economic incentives provided by the ETS, such as the ability to sell surplus credits.

3. Technological Advancements: 
The new regulations will likely drive innovation in the maritime industry. Shipowners will be encouraged to adopt renewable and low-carbon fuels, such as advanced biofuels, e-fuels, hydrogen, and ammonia. These advancements will not only help in meeting regulatory requirements but also position companies as leaders in sustainable shipping.

4. Enhanced Market Competitiveness: 
Compliance with the new regulations can enhance a company’s reputation and competitiveness in the market. Customers and stakeholders are increasingly prioritizing sustainability, and companies that demonstrate a commitment to reducing their environmental impact will likely gain a competitive edge.

How VPS Can Support Shipowners
At VPS, we provide a comprehensive suite of services to help shipowners meet these new regulatory requirements:

Comprehensive Emissions Monitoring: 
We offer advanced emissions monitoring solutions that ensure accurate and reliable data collection. Our systems are designed to meet the stringent requirements of the MRV, providing shipowners with the tools they need to comply with regulations.

Strategic Advisory Services: 
Our team of experts can provide strategic advice on how to optimize operations and reduce emissions. We help shipowners identify the most cost-effective and sustainable technologies and practices, ensuring compliance while minimizing costs.

Digital Data Collection and Analytics: 
We leverage cutting-edge digital tools to collect, analyze, and report emissions data. Our digital approach ensures that shipowners have access to real-time data and insights, enabling them to make informed decisions and stay ahead of regulatory requirements.

Fuel Testing, Including Biofuels: 
VPS specializes in comprehensive fuel testing services, including advanced biofuels. Our testing ensures that fuels meet the highest standards of quality and performance, helping shipowners transition to more sustainable fuel options with confidence.

Training and Support: 
We offer training programs to help shipowners and their crews understand the new regulations and how to comply with them. Our support services ensure that shipowners have access to the latest information and best practices in emissions management.

4 Key Questions Every Offshore Shipowner Should Ask to Navigate the New MRV Regulations
As the maritime industry faces new regulatory challenges, here are four essential questions every offshore shipowner should ask when preparing for the latest MRV requirements:

Scope & Compliance:
"Do I fully understand how the new MRV regulations apply to my fleet, and what are the key definitions of ‘offshore ships’ and ‘ports of call’ I need to consider?"

Reporting & Verification:
"What specific data do I need to report, and how can I ensure my emissions data is verified accurately?"

Operational Adjustments:
"What changes do I need to implement to comply with MRV standards while minimizing costs?"

Certified Biofuels:
"When should I explore certified biofuels, and how can I ensure they meet sustainability criteria?"

At VPS, we are your trusted partner in navigating offshore decarbonisation. Whether through compliance support, strategic advisory services, or fuel testing, we're here to help you thrive in this evolving regulatory landscape.

Conclusion
The updated MRV regulations for offshore vessels and their inclusion in the ETS from 2027 represent significant steps towards a more sustainable maritime industry. While these changes bring challenges, they also offer opportunities for innovation and growth. At VPS, we are committed to supporting shipowners in navigating these new regulations and achieving their sustainability goals.

Where to Start
Develop an MRV Monitoring Plan: Begin by creating a comprehensive MRV plan that considers your current methods of measuring emissions. This plan will guide your efforts in monitoring, reporting, and verifying emissions, ensuring compliance with regulations and optimizing the use of sustainable fuels to reduce both emissions and potential costs associated with the ETS.

MRV reporting with Maress' MRV Reporting Module, book a demo today!

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Article by Steve Bee, Group Commercial Director, VPS

As the global marine fuel mix grows, becoming more varied and consequently more complex in terms of fuel management, there is a potential increasing risk to vessels, crew and the environment, from the possible impact of poor-quality fuels.

Yet, whilst shipping looks to decarbonise, with a view to introducing low-to-zero carbon fuels, such as biofuels and methanol, these fuels currently account for approximately 1% of the fuel mix. The more traditional fossil fuels are continuing to satisfy the day-to-day demand in terms of fuels supplied to vessels at this time, with almost 230 million MT of marine fuels being bunkered last year.

The VPS database shows for all fossil fuels tested the following current Off-specifications have been identified:

VPS Bunker Alerts, are also a good indication of current fuel quality and so far to date, VPS have issued 21 Bunker Alerts this year. These alerts have highlighted witnessed quality issues with the three main fuel types of HSFO (6 alerts), VLSFO (9 alerts) and MGO (6 alerts). The 2024 alerts show significant off-specifications for 8 different test parameters, from 11 different locations, across Europe, Middle-East, Asia and the Americas. This proves fuel quality issues can arise anywhere at any time, for any fuel type or test parameter.

June 2024, saw the 7th revision of the marine fuel standard ISO8217, released to the industry. ISO8217:2024 is seen as a major step forward in terms of setting specifications for marine fuel quality. This latest revision has moved from two fuel specification tables, to four. It now includes, for the first time, specifications for VLSFO and ULSFO fuels containing 0.50% or 0.10% sulphur respectively, plus biofuels containing FAME, HVO, GTL, BTL, bio-components.

Acknowledging that ISO8217:2024, is an improvement on previous revisions of the standard, it still does not cover enough of the further potentially problematic issues of chemical contamination, cold-flow properties, microbial-growth, plus wider bio-components such as Cashew Nut Shell Liquid (CNSL), to name but a few areas of concern.

In addition, the industry has a very poor track record of purchasing fuel against the very latest revision of the ISO8217 standard. To date, VPS as the world’s largest marine fuel quality testing company, still see 12.6% of samples received for quality testing, being purchased against the 2005 revision of the standard. So, vessels are purchasing fuel against a standard which is actually only 3 months off being 20 years old? That revision has since been replaced by four further revisions of the standard over the years and it bears very little relevance to today’s fuels. Therefore, these vessels are really operating at a significantly increased level of risk, if they are relying on ISO8217:2005 to fully protect them.

The most common revision against which marine fuel is purchased today, is still ISO8217:2010. 48% of all fuel samples received by VPS, are being tested against this revision. Again, ISO8217:2010 is almost 15 years old, so why is almost half of the fuel being purchased to it? There is no consideration of VLSFO, or ULSFO fuels, with FAME also being classed as a contaminant.

The 2017 revision, still only accounts for 20% of the fuel samples VPS receive for testing, even though its nearly eight years old. However, it does consider the presence of FAME within certain distillate grades, but still offers no specification for the lower sulphur grades of residual-based fuels, where VLSFOs are the most widely purchased fuel type. 

All this means is the global fleet is buying fuel and testing its quality against a standard which is between 8-20 years old?

To date, VPS have not received a fuel sample, fossil fuel, or biofuel, purchased to the 2024 revision. Based on past history it maybe sometime before such a sample is received? Even then ISO8217:2024, whilst a major improvement to previous revisions, is not an all-encompassing standard.

As far back as 2018, The Swedish Club released their independent report, “Main Engine Damage”. This report highlighted how to avoid engine damage, including information showing the average cost of a single fuel management incident onboard a vessel was $344,069. It also stated the average cost of a single lubrication failure was $763,320.

The Swedish Club’s advice and recommendations were:

Back in 2019, in the lead up to IMO2020 and the reduction in the global sulphur cap to 0.50%, VPS foresaw potential quality issues with the new incoming VLSFO fuels. These fuels would be of higher paraffinic content, leading to poorer cold-flow behaviour, potential wax precipitation and major stability issues. VPS recognised that the ISO8217 standard did not provide sufficient protection to a vessel, when using VLSFO, or even HSFO and MGO fuels.

Therefore, the VPS Additional Protection (APS) service was launched prior to 2020. This service offers the full ISO8217 test scope, plus a number of additional tests, in one package offering, at a significantly reduced price, in order to ensure a greater level of protection to vessels and enhanced peace-of-mind to the, now more informed operator, using this service.

The APS Package is customised by fuel type, to cover, HSFO, VLSFO, or Distillates. The additional tests included, will provide much more information and greater understanding of the fuel in relation to stability, chemical contamination, cold-flow properties, lubricity and microbial-activity. The package can also be further customised to individual customer requirements. Many VPS customers have used and continue to use APS, to mitigate the potential risks from poor quality fuel and benefit from the added-value and cost savings, the service delivers.

In 2022, the incoming range of marine biofuels, warranted VPS to research a number of different additional tests to assist in identifying biofuel management issues and understanding their behaviour and operational risks.  As a consequence, VPS launched the APS-BIO packages. Once again, these include the ISO8217 as a base test slate, but also include additional tests to measure energy content, stability, renewable content, microbial-activity, corrosivity and cold-flow properties. The APS-BIO suite of test slates cover different bio-components such as FAME, HVO, CNSL, plus the fossil fuels used in a bio-blend, eg HSFO, VLSFO, MGO.

Once again VPS customers, are seeing real benefits and added-value, as they look to use biofuels as their decarbonisation option, knowing that in VPS they have an experienced, expert fuel management partner.

If you wish to understand more on how VPS Additional Protection Services can assist you in mitigating fuel quality risks and improve your vessel performance and efficiencies, please contact your local VPS Account Manager, or email steve.bee@vpsveritas.com

For over three decades, VPS has proudly supported SIBCON, which has grown into the premier industry event, facilitating crucial discussions on safety, fuel quality, and the future of bunkering. This event, hosted by the Maritime and Port Authority of Singapore (MPA), presents an invaluable opportunity for our global team Malcolm Cooper, Jan Wilhelmsson, Rahul Choudhuri, Steve Bee, John MacKenzie, and Andrew Morton to engage with industry leaders and exchange insights. VPS will play a pivotal role in the Steering Committee, with Rahul Choudhuri, VPS President Strategic Partnerships, contributing his expertise to shape the future of maritime bunkering.

Join us at SIBCON 2024 from October 8-10 for dynamic discussions on digital bunkering, decarbonisation, and alternative fuel pathways. We look forward to connecting with you at the event!

Join VPS at the Maritime Decarbonisation, Europe: Conference, Awards & Exhibition 2024, taking place on 24 September 2024 in Amsterdam.

Our experts will be sharing insights into the future of sustainable shipping. John MacKenzie, Group Strategic Business Development Manager at VPS, will speak on biofuels in maritime applications. He will cover key topics such as biofuels fundamentals, the latest trends, operational considerations for ships, and the future outlook for maritime biofuels. 

Later in the day, Sindre Stemshaug Bornstein, VP Commercial - Digital & Decarbonisation at VPS, will lead a Roundtable Discussion on Digital & Decarbonisation. Join a focused group of industry professionals to explore critical issues and advance the conversation around decarbonisation in maritime.

We look forward to seeing you there!

We are excited to be speaking at the upcoming Offshore Support Journal Conference, Asia 2024! 

Amzah Hassan, VPS Regional Lead - Digital & Decarbonisation, will be discussing how digitalisation is transforming the maritime industry, particularly in reducing operating costs, optimizing operations, and driving decarbonisation.

We will also dive into real-world examples of how our Maress platform is making a tangible impact. From real-time emissions monitoring to crew engagement initiatives, Maress is helping our clients navigate the challenges of sustainability while enhancing efficiency and compliance.

Looking forward to sharing insights and connecting with industry leaders who are as passionate about maritime sustainability as we are. 

The theme of the ONS 2024 conference in Stavanger this week is "to take the action that really matters, to step up and think ahead", and VPS is all for it: IMAGINE what we could achieve.

Ruben Hofsli Eikeland and Linda Stuberg will be at the conference on Tuesday and Wednesday, and they are both eager to have a good discussion on decarb and which actions are needed going forward. The decarb landscape is ever changing for every player in the offshore market, and VPS is continuously working on staying relevant and up to speed with market legislations and expectations.

If you want to have a chat, reach out to Ruben and Linda directly or via decarbonisation@vpsveritas.com

Welcome to the Maress Sustainability Partnership on November 5th, 2024, in Bergen, Norway. This event brings together industry leaders to explore key developments in sustainability, with a focus on data flow, decarbonisation strategies, and upcoming regulatory changes. Throughout the day, there will be group discussions, networking opportunities, and insightful presentations. Join us for a collaborative day to share knowledge, explore solutions, and build lasting partnerships.

For more information, please contact us: decarbonisation@vpsveritas.com

In keeping with our ongoing commitment to provide our customers with the highest level of technical support, VPS is happy to announce our next insightful Industry Roundtable event. Decarbonisation and Low-Zero Carbon Fuels are front and center issues to be discussed. The new marine fuels standard ISO-8217:2024 version will be outlined and its potential impact on Vessel Owners and the Bunker Industry. Additional presentations from a global manufacturer of filters for fuels and lubes and a vessel Owner & Manager.

Date: 12 November, 2024

Agenda
14.30-15.00: Reception & Registration
15.00-15.05: Meeting  Kick-off | Moderator: Angelos Vytimas, VPS Account Manager
15.05-15.40: Low-Zero Carbon Fuels | Steve Bee, VPS Group Commercial Director
15.40-16.00: Bunker Loss Prevention: Dimitri Kisil, Loss Prevention Associate, West of England Insurance Services (Luxembourg) S.A.

16.00-16.15: Break | Coffee & Networking 
16.15-16.40: VPS Decarbonisation | Steve Bee, VPS Group Commercial Director
16.40-17.00: BIMCO Clauses and Claim cases: Mrs. Iris Tsou Vamvaka, Senior Associate in Hill Dickinson

17.00-17.20: What's New ISO-8217:2024 | Vassilis Koutsoumaris, VPS Account Manager
17.20-18.00: Q&A

Venue
Grand Hyatt Hotel Athens, Leof. Andrea Siggrou 115
Athens 117 45

Register at:
piraeus@vpsveritas.com

Navigating the Future of Marine Fuel, Low-Zero Carbon Fuels and VPS Decarbonisation Services 

Date
Wednesday, 6 November 2024

Agenda
12.00: Registration and lunch
13.00: ISO8217:2024 | Mats Christensen (Sales Manager, VPS)
13.50: Risk Associated with Maritime Decarbonisation | Neil Mathew (Claims Executive, Marine & Energy Claims, GARD)
 
14.30: Coffee break & networking 
14.45: Low-Zero Carbon Fuels | Steve Bee (Group Commercial Director, VPS)
15.30: Q&A
15.45: Decarbonisation services | Sindre Bornstein (VP Commercial Digital & Decarbonisation, VPS)

16.20: Summary

Venue
Quality Hotel Edvard Grieg
Bergen-Norway

Register at:
anita.garnes@vpsveritas.com

Steve Bee, our Group Commercial & Business Development Director, will be taking the stage at ARACON 2024 in Rotterdam on 24-25 October.

Steve is set to speak during session five: New Frontiers – Delivering on Decarbonisation. While shipowners will play a major role in shaping the future of decarbonisation through fuel choices and newbuilds, it's the marine fuels sector that holds the key to making this transition a reality. The sector must be prepared to meet the demand for new fuels as the market evolves.

This session will dive into how the marine fuels industry is already adapting to meet the decarbonisation challenge, with a focus on biofuels, LNG, and methanol. Experts will also explore critical topics like ISCC certification, mass balancing, and cutting-edge technologies to improve fuel efficiency. Ports' efforts to support the infrastructure needed for these new fuels will also be a key highlight.

Additionally, Steve will be hosting an "Introduction to Biofuels" seminar on 23rd October, setting the stage for ARACON with insights into biofuel advancements.

View the programme here: https://www.petrospot.com/events/aracon24/programme/aracon24-programme

Press Release

VPS is pleased to announce a strategic partnership with Metcore International Pte Ltd. This collaboration integrates the strengths of each organisation in the physical bunker surveying and advanced assessment of MFM systems. The aim, to further enhance the accuracy and reliability of quantification in bunkering. This partnership signifies a commitment to advance industry standards and ensure the efficiency and integrity of bunker fuel supply operations globally.

The introduction of Mass Flow Meters (MFM) has revolutionized how bunker fuel is now supplied to vessels. Since its successful implementation in Singapore in 2017, numerous international bunker ports have recognized the benefits of MFM in enhancing the transparency and ensuring the integrity of bunker quantity measurements.

However, it's essential to acknowledge that MFM is a physical device and does not independently guarantee compliance with bunker quantity standards. To consistently deliver accurate results over time, it is crucial to implement and adhere to robust MFM standards- the primary standards being the Singapore Standard SS 648: 2019 Code of Practice for Bunker Mass Flow Metering (recently revised and launched at SIBCON 2024) and the ISO 22192:2012 Bunkering of marine fuel using the Coriolis mass flow (MFM) system.

The MFM also offers the important opportunity to digitize the bunker supply chain, to further streamline this exceedingly manual process and in turn strengthen the transparency of bunker deliveries via MFM. However, this will also require checks & balances as the bunker industry prepares for this digitization transition.

Darrick Pang, Managing Director of Metcore International Pte Ltd, in highlighting the importance of this partnership to advance bunkering technology, said, “While MFM systems have gained global traction in bunker applications over the past decade, success hinges on more than just deploying the device. Taking the right approach in using the MFM system is crucial for ensuring compliance with safety standards, achieving operational efficiency and maintaining transparency and trust in measurement integrity”.

Andrew Morton, Managing Director of Asia, Middle East & Africa, VPS said, “VPS is excited to start this partnership with Metcore, who is best in class for their understanding of Mass Flow Meters. Through our partnership, we will integrate physical and digital surveying to provide a new service to our customers, the first of its kind to the maritime industry”.

For more information please contact: 
Steve Bee 
Group Commercial & New Business Development Director 
steve.bee@vpsveritas.com
+44 7500 848 351