The industry coalition SEA-LNG is pressing the European Commission's Directorate-General for Energy (DG ENER) to maintain the mass-balance terminal chain of custody for marine fuels. This initiative precedes anticipated revisions in 2026 to the implementing framework of the Renewable Energy Directive (RED III). SEA-LNG's recent report, titled 'Liquefaction by Equivalence Pathways for Liquefied Biomethane: A Policy Framework...', highlights the critical role of mass balance in enabling the shipping sector to adopt renewable fuels.
Mass balance is a crucial accounting method that allows for the mixing of renewable and fossil fuels within existing infrastructure while tracking the renewable content. This approach is vital for scaling up the use of liquefied biomethane (LBM) and e-methane, as it avoids the need for dedicated, separate supply chains, which are currently impractical and costly. Without robust protection for mass balance, the economic viability and logistical feasibility of integrating these greener fuels into the maritime sector could be significantly hampered.
For freight forwarders and logistics operators, the protection of the mass-balance pathway is important for several reasons. It directly impacts the availability and cost-effectiveness of alternative marine fuels. If mass balance is not recognized, the supply of LBM and e-methane could be restricted, potentially leading to higher fuel costs and limited options for shippers aiming to reduce their carbon footprint. This could also affect compliance with future emissions regulations, as the ability to demonstrate the use of renewable fuels through mass balance is key. A clear and stable regulatory framework supporting mass balance provides predictability for investment in green fuel production and bunkering infrastructure, which is beneficial for long-term supply chain planning.
SEA-LNG's call aims to ensure that the revised RED III framework supports the maritime industry's decarbonization efforts by providing a practical and scalable method for accounting for renewable fuel content. The outcome of these revisions will significantly influence the pace and cost of the shipping sector's transition to lower-emission fuels.
