Furetank concludes its first bio-LNG bunkering

Swedish shipping company Furetank has completed its first bunkering of ISCC-certified bio-LNG as a step toward complying with the heightened EU environmental requirements.

Furetank conducted this milestone operation in collaboration with LNG supplier Molgas and environmental commodity trader STX Group, delivering 200 tonnes of bio-LNG to tanker vessel Fure Viken outside Mongstad, Norway.

As disclosed, STX Group and Molgas collaborated to source, liquify, and deliver the ISCC-certified bio-LNG, fully recognized under the EU Renewable Energy Directive (REDII). The operation also marked the first time that Molgas has delivered a mass-balanced bio-LNG bunker to a maritime customer in Norway.

According to Furetank, the bio-LNG bunker delivery will help comply with the FuelEU Maritime regulation which requires a 2% reduction in marine fuel’s greenhouse gas (GHG) intensity by 2025.

Bio-LNG is a mass-balanced product where biomethane of certified origins is purchased and injected into the gas grid, while the corresponding amount of gas is withdrawn from the grid and liquefied into maritime fuel. Since the new regulation makes no distinction between mass-balanced and off-grid-produced biomethane, a new path for shipping in the transition to renewable energy opens up, surpassing some of the hurdles of lack in biomethane supply and delivery infrastructure, Furetank explained.

“We used biomethane of the highest environmental standard available in the market. This transaction marks a milestone in our transition to clean fuels, while also supporting European agriculture and biogas production. Furetank has worked for several years with fuel suppliers and ports to realize larger-scale liquefied biogas deliveries on several European destinations. This is a very positive development,” said Furetank’s CEO Björn Stignor.

STX Group described the transaction as one of the first signs of a new fuel market being born. “Bio-LNG is an efficient answer to FuelEU Maritime: a market-based regulation which rewards those who blend in biofuels and penalizes those who don’t. Together with the EU ETS, it builds a business case for renewable fuels. This transaction is proof of how Bio-LNG can be a powerful tool when lowering emissions from the transport sector,” said Sead Keric, Managing Partner of Renewable Gas at STX Group.

Furetank is currently working on renewing and updating its fleet with a series of dual-fuel Vinga product tankers.

As described, the Vinga series is designed for the intense and demanding trade in the North Sea and Scandinavia, well suited to meet the growing European demand for biofuels and renewable feedstocks.

The ships are ice class 1A 17,999 dwt product tankers designed by Furetank together with FKAB Marine Design. They all have dual-fuel capability, run on LNG/LBG or gasoil, and are fully equipped for shore power.

They are designed with a battery hybrid solution and several innovative features that reduce fuel and energy consumption, resulting in extensively lowered emissions of CO2, sulfur oxide, nitrogen oxide, and hazardous particles.