FuelEU is largely technology agnostic, meaning that goals are set for the reduction of the GHG intensity of fuels over time, but how this is achieved is largely up to the shipowner/operator responsible for compliance and the use of fuels and technologies onboard a vessel.
That said, there is specific provision for the use of on-shore power supply and or zero emission technologies to help to meet the GHG intensity reduction requirements.
On shore Power Supply requirements
The obligation for ports to provide on-shore power supply (OPS) is detailed in regulation 2023/1804 (EU) Alternative Fuels Infrastructure Regulation (AFIR). FuelEU provides the corresponding requirements for ships to use the OPS connections available. As such FuelEU mandates that:
- From 1 January 2030, a container or passenger ship >5000 GT, moored at the quayside in a in Trans-European Network -Transport (TEN-T) maritime port (as regulated under AFIR) under the jurisdiction of an EEA Member State, must connect to OPS and use it for all its electrical power demand at berth.
- From 1 January 2035, a container or passenger ship >5000 GT, moored at the quayside in any port under the jurisdiction of an EEA Member State where OPS is available, must connect to OPS and use it for all its electrical power demand at berth.
Additionally, from 1 January 2030, any Member State may decide to require OPS connections for container and passenger ships at anchorage within all or part of its ports. In such a case, the Member State must notify the European Commission, and the requirement should apply from the beginning of a reporting period (January to December).
Notification of OPS requirements
Any owners/operators wishing to use OPS are to inform the competent authority of the Member State of the port of call of their intention to connect to OPS or their intention to use a zero-emission technology, including an indication of the amount of power they expect to require during that port call. The Member State or competent authority is then required to inform the owner/operator of the availability of the required OPS (as applicable).
Secondary legislation is pending to specify the information and procedure for providing that information.
Derogations
The requirements for the provision of on-shore power will not apply where the port is:
- Located on an island or in an outermost region, which is not connected directly to the electricity grid of the mainland; or,
- in the territory of Ceuta and Melilla and not connected to the electricity grid of a neighbouring country.
- These requirements will apply to the outermost region of Ceuta and Melilla only when such a connection has been completed or there is sufficient locally generated electricity capacity from non-fossil energy sources to cover the island's needs.
Exceptions
The mandatory use of OPS will be excepted for any ships which:
- are moored at the quayside for less than two hours, calculated based on time of arrival and time of departure;
- use zero-emission technologies for all their electrical power demand at berth while moored at the quayside;
- due to unforeseen circumstances beyond the control of the ship, have to make an unscheduled port call, which is not made on a systematic basis, for reasons of safety or saving life at sea;
- are unable to connect to OPS due to the unavailability of OPS connection points in a port;
- are unable to connect to OPS because exceptionally the electrical grid stability is at risk, due to insufficient available shore-power to satisfy the ship’s required electrical power demand at berth;
- are unable to connect to OPS because the shore installation at the port is not compatible with the onboard on-shore power equipment. This is provided that the installation for shore-connection on board the ship is certified in accordance with the technical specifications set out in Annex II to Regulation (EU) 2023/1804 AFIR) for the shore-connection systems of seagoing ships;
- for a limited period, require the use of onboard energy generation under emergency situations representing an immediate risk to life, the ship or the environment or for other reasons of force majeure;
- while remaining connected to OPS, for a period of time limited to what is strictly necessary, require the use of onboard energy generation for maintenance tests or for functional tests carried out at the request of an officer of a competent authority or the representative of a recognised organisation undertaking a survey or inspection.
Limitations of use of exceptions
From 1 January 2035, the exceptions mentioned can only be applied to the lower of:
- a maximum of 10 % of a ship’s total number of port calls that took place during a reporting period (January to December), rounded up to the nearest whole number; or,
- to a maximum of 10 port calls during the relevant reporting period.
If a company can demonstrate through sufficient information exchange that it could not reasonably have known that a connection to OPS would be unavailable, the connection in port was not compatible, or there was insufficient power available, then the port call will not be counted towards the total annual limitation for those specific exceptions.
Member States will be required to report in the Fuel EU database if any exception has been applied for OPS usage or non-compliance has been noted where none of the exceptions apply.
Zero Emission Technologies
As per Article 3(7) of FuelEU, ‘zero-emission technology’ means a technology that, when used to provide energy, does not result in the release of the following greenhouse gases and air pollutants into the atmosphere by ships: carbon dioxide (CO2), methane (CH4), nitrous oxide (N2O), sulphur oxides (SOx), nitrogen oxides (NOx) and particulate matter (PM).
Zero emission technologies are key to the FuelEU requirements for zero emissions at berth from 2030 for >5000 GT container and passenger vessels. If a ship utilises a zero-emission technology for its energy needs, and this is used for all their electrical requirements in port, then this will except the ship from using OPS at berth after 2030. Any ship using a zero-emission technology which complies with the FuelEU requirements, will be excepted from the requirements to connect to onshore power, and associated penalties for non-compliance.
Annex III of Regulation (EU) 2023/1805 Fuel EU provides a non-exhaustive list of the types of technologies and the general requirements for their operation considered zero-emission technologies. This table may be expanded in the future to include additional technologies not identified in this annex that achieve zero emissions as per Article 3(7) of FuelEU. .
Details on the specific criteria for zero-emission technology acceptance, the definition of system boundaries, and certification requirements will be provided in the relevant secondary legislation and expanded as necessary as new technologies are added to Annex III of FuelEU.
Monitoring and recording zero emission requirements
As per Article 8 of FuelEU, by 31 August 2024, ship owners/operators must have complied with a monitoring plan which contains, amongst other requirements:
- A description of the standards and characteristics of the equipment to allow connection to OPS, or a zero-emission technology as applicable.
- The value of the established total electrical power demand of the ship at berth, as provided in its electrical load balance or electrical load study used to demonstrate compliance with SOLAS II-1, Regs 40 & 41. (Note – if a ship is not able to provide that reference, the value considered is 25 % of the total of the maximum continuous ratings of the main engines of the ship as specified in their Engine International Air Pollution Prevention certificate (MARPOL) or, if the engines are not required to have an EIAPP certificate, on the nameplate of the engines).
- A description of the intended sources of energy to be used on board while in navigation and at berth.
- a description of the procedures for monitoring the fuel consumption of the ship as well as the energy provided by substitute sources of energy or a zero-emission technology.
The monitoring plan must be modified if the ship is equipped with new system connections to OPS, new substitute sources of energy, or new zero-emission technologies.
As per Article 15 of FuelEU, from 1 January 2025, based on the monitoring plan, shipowners / operators are to monitor and record the following zero emission at berth requirements for each vessel in scope:
- the connection to and use of OPS or the application of any of the exceptions;
- the amount of electricity delivered to the ship through OPS; and
- the amount of each type of substitute source of energy consumed at berth and at sea.
This data will form part of the annual FuelEU report which the shipowner / operator is to provide to the verifier.
Verification and calculations related to OPS
As per Article 16 of FuelEU, verifiers assess the reliability, credibility, accuracy, and completeness of the data and information collected by the shipowner/operator presented in the FuelEU report. In relation to the zero-emission at berth requirements, the verifier will assess:
- the attribution of fuel consumption and the use of substitute sources of energy to voyages and at berth; and
- the use of OPS or the application of any of the exceptions recorded in the FuelEU database.
From 2026, this verified and calculated information will be communicated to the shipowner and recorded in the FuelEU database by 31 March of each year.
From 1 January 2030, when the OPS requirements become mandatory, the verifier will also calculate (amongst other things) the number of non-compliant port calls in the previous reporting period. This will include the time spent moored at the quayside and at anchorage (where applicable), for each port call by the ship in non-compliance with the OPS requirements.
It should be noted that prior to the mandatory OPS requirement (starting in 2030), the information to be reported for the number of non-compliant port calls and time spent moored at the quayside for non-compliant port calls will be “0” by default.
In addition, the well-to-tank emission factor applied to electricity supplied at the berth will be zero. This is a policy measure set by the EU designed to incentivise the use of OPS and electrification in shipping.
Penalties
Penalties for the number of non-compliant hours spent at berth will be applicable from 1 January 2030 onwards as the mandatory OPS requirements apply. Based on the calculated non compliant port calls a ship owner/operator will be required to pay a penalty calculated based on:
EUR 1.5x total electical power demand of the ship at berth x total non compliant hours at berth
Only when penalties have been paid will a FuelEU Document of Compliance be issued.