Enable cost savings through effective use of of Biofuels and BDN reporting with Høglund MRV/DCS Auto Upload

As the maritime industry seeks cost-effective solutions to reduce carbon emissions, efficient reporting is becoming increasingly important. Biofuels – such as methane, methanol, or fuel oils – provide a way for shipping companies to lower their carbon footprint without significant capital investment. These fuels can be blended with similar fossil fuels and used in existing engines, eliminating the need for expensive retrofitting.

Did you know that utilizing biofuels not only benefits the environment but also offers substantial cost-saving opportunities? By incorporating biofuels into your operations, you can achieve significant cost deductions on EU Allowances (EUAs). To qualify for these deductions, documentation must be provided to a verifier (such as DNV) confirming the use of biofuels, followed up by efficient fuel reporting.

Understanding Fuel Reporting: Fuel Type Reports and BDN Fuel Reports

There are two primary methods for reporting fuel consumption: Fuel Type Reports and BDN (Bunker Delivery Note) Fuel Reports. Fuel Type Reports categorize consumption based on predefined fuel types, with the possibility of adding new types. In contrast, BDN reports are tied directly to individual BDNs, which can represent either specific deliveries or blends of multiple deliveries.

Benefits of Using Biofuels

By incorporating biofuels into their operations, shipowners can achieve significant deductions on EU Allowances (EUAs).

For instance, if a vessel emits 20,000 tons of CO2 in a year, 40% of these emissions are ETS (Emissions Trading System) applicable in 2024. Companies must buy one EUA per ton of non-renewable CO2 emitted. The example implies that the company must buy 20,000 x 0.4 EUA = 8,000 EUA. The cost of an EUA is fluctuating and currently at approximately 60 Euro/EUA. The total cost in our example is thus 8000 EUA x 60 Euro/EUA = 480 000 Euros.

Using a biofuel blend like B30, which consists of 30% biofuel, could reduce the applicable EUAs by 30%, leading to considerable cost savings.

The applicable EUA may increase to 70% in 2025, leading to almost a doubling of ETS costs. Thus, the time to implement BDN biofuel reporting is now!

Challenges and Considerations

1. Accurate Reporting: Reporting biofuel blends accurately is crucial. Different blends can alter fuel parameters, making it essential to trace the exact bunker from consumption to ensure correct MRV (Monitoring, Reporting, and Verification) and ETS calculations.
2. Verification: Accurate documentation must be provided to verifiers to confirm the use of biofuels. This is necessary for obtaining the deductions on EUAs and ensuring compliance with regulations.
3. Future Regulations: With the introduction of new regulations like FuelEU, which will tax all non-biofuels, it is important for shipowners to consider their reporting methods carefully. Switching to BDN reporting can help maximize savings and comply with evolving regulatory requirements.

Technological Solutions: Høglund MRV/DCS Auto Upload

The Høglund MRV DCS Auto Upload module is your solution to seamlessly managing documentation and reporting requirements. This tool minimizes the manual labour involved in generating mandatory environmental documentation. Currently supporting EU/UK MRV, IMO DCS, and IMO BDN document uploads, the MRV/DCS integrates into the proven Høglund Connect setup to automate reporting effortlessly.

Why Choose Høglund MRV/DCS Auto Upload?

• Efficiency and Ease: Once set up, minimal work is required to maintain report generation, freeing up your time and resources.
• Cost Savings: Achieve deductions on EU Allowances by ensuring accurate and timely BDN reporting.
• Stress-Free Compliance: Avoid last-minute stress with early detection of warnings and errors. Errors and warnings are visible shortly after data submission on Høglund and DNV Veracity pages.
• Daily Report Submission: Report submissions to DNV are performed daily, ensuring you stay ahead of deadlines.
• Immediate CII Ratings: Access your CII ratings instantly, both with and without exceptions. Our deep data understanding means issues are easily identified and resolved without needing a fourth party.
• Expert Assistance: With an assistance license, Høglund engineers can fix issues during the reporting period and help set up CII exceptions to maintain your edge in contract negotiations, reduce costs, and comply with the mandatory yearly CII improvement schedule.
• Broad Vessel Support: The module supports most types of vessels, including ferries, making it a versatile solution for your fleet.

With Høglund MRV/DCS Auto Upload, prepare for seamless BDN biofuel reporting and maximize your cost savings, while empowering your maritime operations with efficient, environmentally responsible practices.