BIMCO's documentary work – alternative fuels

Published: 08 August 2023

As the maritime sector moves towards a greener and more sustainable future, BIMCO remains at the forefront of this transformation addressing the issue of alternative fuels. BIMCO is developing robust contractual tools for the industry by establishing two new subcommittees to commence work on clauses to address the introduction of the FuelEU Maritime Regulation, use of biofuels, dual fuel and to produce new Methanol Bunker Terms.

The use of traditional fuels within the maritime industry has contributed to significant greenhouse gas emissions. The industry is now advancing towards greener, more sustainable alternative fuels; driven in part by evolving international and domestic legal and regulatory requirements; as well as the move towards decarbonisation. Alternative fuels such as liquefied natural gas (LNG), biofuels, methanol, hydrogen and ammonia offer cleaner burning options compared to traditional fuels. Recognising the urgent need for change, BIMCO has been actively engaged in assisting its members by being at the forefront – developing new contracts and clauses to support the industry with the tools it needs to deal with the introduction of new regulations such as the FuelEU Maritime Regulation.

The FuelEU Maritime Regulation enters into force on 1 January 2025 and is part of the European Union’s “Fit for 55” package. The regulation seeks to promote the decarbonisation of the shipping industry by encouraging the use of renewable and low-carbon fuels within the industry.

In May 2023, BIMCO published its LNG Bunker Terms (as Annex B to our existing BIMCO Bunker Terms 2018) for the industry. Since then, BIMCO has conducted a round of initial industry consultations and is now in the process of establishing a new subcommittee dedicated to developing clauses to address the introduction of the FuelEU Maritime Regulation. This subcommittee will also consider whether a clause will be needed to address the expected increase in demand for the use of biofuels.

At BIMCO we will also establish a separate subcommittee to begin drafting bunker supply terms specifically catered for methanol taking into account its unique properties by developing new Methanol Bunker Terms. In a similar way to the LNG Bunker Terms and to provide our members with a relatively simple solution, these Terms will be produced as an additional Annex to complement our existing BIMCO Bunker Terms 2018. In addition, this subcommittee will look into whether a clause addressing the use of dual fuel (as an interim solution in the transition towards alternative fuels) would be useful for the industry.

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