Hecla Emissions Management Unveils FuelEU Maritime Exchange to Support Trading of Compliance Balances
Hecla Emissions Management, a joint venture between Wilhelmsen Ship Management and Affinity Shipping LLP, has launched its FuelEU Maritime Exchange (FME) platform. The FME is the shipping industry's first platform designed to facilitate secure trading of FuelEU Maritime compliance balances, driving the adoption of alternative fuels.
The platform allows users to tokenize and transfer compliance balances on a digital ledger built on blockchain principles. This innovative approach enables the transfer or trading of compliance balances on a 'per voyage' basis, eliminating the need to wait until the end of the compliance period.
"The shipping industry needs a reliable platform and an orderly marketplace to realize the financial value of compliance balances," said Øyvind Størdal, representing Hecla Emissions Management. "We've worked with stakeholders from across the value chain – including Document of Compliance holders, owners, charterers, brokers, and verifiers – to create a user-friendly solution. We believe the FME will solve significant commercial problems associated with the regulation.”
The FuelEU Maritime regulation, coming into effect on January 1, 2025, requires all vessels over 5,000 GT calling EU ports to report the carbon intensity of the fuels they use. Ships that exceed the prescribed fuel carbon intensity target will have a compliance deficit, and will either face penalties, be required to borrow balances from the next year, or "pool" with vessels in compliance surplus. Most companies wanting to avoid paying the penalty will need to acquire compliance surplus externally, but the regulation makes no provision for this.
When shipping entered the EU ETS at the start of 2024, it joined a highly liquid, mature financial market with proven rules and settlement processes. As FuelEU Maritime has no such infrastructure in place, Hecla’s FME aims to bridge this gap, offering the necessary infrastructure for trading compliance balances and ensuring that the regulation aligns with the shipping industry's existing contractual frameworks.
Established in 2023, Hecla has rapidly become a leader in environmental compliance, managing EU ETS compliance for over 35 clients and more than 1,000 vessels across each sector of the shipping industry. With the launch of the FuelEU Maritime Exchange, Hecla Emissions Management is once again pioneering solutions that help the shipping industry navigate complex regulations.
About Hecla Emissions Management: Hecla Emissions Management, a joint venture between Wilhelmsen Ship Management and Affinity Shipping LLP, specializes in providing environmental compliance solutions to the maritime industry. The company is a market leader in EU ETS compliance and continues to innovate with solutions such as the FuelEU Maritime Exchange to drive sustainability and regulatory compliance in shipping.