Recent regulatory moves in the EU are reshaping incentive structures for dual-fuel vessels, especially those switching between LNG and methanol. X-Press Feeders, which has been among the early adopters of methanol dual-fuel container feeders, now faces a tougher environment as new LNG-focused regulations reduce the comparative appeal of methanol solutions.
Earlier this year, the EU extended its Emissions Trading System (ETS) and introduced FuelEU Maritime regulations mandating reduced greenhouse gas intensity and stricter emissions standards for marine fuels used in vessels calling at EU ports. These rules favor fuels with lower carbon intensity and often more stable supply chains, like LNG. According to reports, X-Press Feeders has already ordered multiple dual-fuel methanol vessels and established green methanol bunkering partnerships (e.g. in Rotterdam via OCI Global). (Hydrocarbon Processing) Methanol promises up to 65 % emissions reductions vs conventional fuel under green methanol supply, but regulatory and cost penalties for LNG are now relatively lessened in the new regime. This undermines the financial incentives that had made methanol dual-fuel competitive.
X-Press Feeders has 14 dual-fuel methanol/newbuild feeder vessels on order, several intended for European feeder routes. Vessels like the 1,170 TEU dual-fuel feeders to be delivered under French flag and managed by V.Ships France are part of this wave. These ships will serve routes including Rotterdam-Antwerp-Bruges-Helsinki-Kotka etc., with early deployment spanning 2024-2026. They had banked on a regulatory climate that rewarded methanol’s emissions profile. But as the EU’s LNG-friendly rules gain traction, the differential in operating cost, fuel availability, and regulatory compliance may tilt back in favor of LNG dual-fuel or even pure LNG in certain trades.
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