FuelEU Maritime's Onshore Power Supply Requirements

What is the FuelEU Maritime Initiative?

The FuelEU Maritime Initiative is a regulation introduced by the European Union to accelerate the decarbonisation of international maritime transport. Its primary goal is to increase the use of renewable and low-carbon fuels in the shipping sector, thereby reducing greenhouse gas emissions and aligning the industry with the EU's climate targets for 2030 and 2050.

The regulation, which was adopted in July 2023, sets strict limits on the greenhouse gas intensity of energy used by ships calling at European ports. It mandates a gradual increase in the use of sustainable alternative fuels, such as biofuels, e-fuels (electrofuels), and renewable fuels of non-biological origin (RFNBOs). The regulation will be phased in, with the first requirements taking effect in 2025 and becoming progressively stricter over time.

Onshore Power Supply Requirements

The FuelEU Maritime regulation sets specific requirements for container ships and passenger vessels calling at EU ports to use onshore power supply (OPS) for their energy needs while at berth. This aims to reduce emissions from ships' auxiliary engines during port stays. Key provisions include:

• From 2030, container ships above 5,000 gross tonnage and passenger ships must connect to OPS or use an equivalent zero-emission technology when calling at EU ports, unless exceptions apply.
• Penalties will apply for non-compliance, including a fee per non-compliance event and potential detainment of the ship.
• The regulation sets a gradual phase-in timeline, with requirements first applying to ships calling at EU ports from 1 January 2030, and full implementation by 1 January 2035.

Impact on Shipping Companies

To comply with the regulation, shipping companies will need to invest in retrofitting their vessels with shore power connections and related equipment. This will allow ships to plug into onshore power supply (OPS) while at berth, rather than running their auxiliary engines. Retrofitting costs can be substantial, depending on the size and age of the vessel.

Additionally, shipping companies will need to adapt their operational procedures when calling at EU ports. This includes coordinating with port authorities to ensure seamless connection to OPS, as well as training crew members on the proper use of shore power systems. Operational changes may also be required to optimise voyage planning and minimise emissions.

Cost estimates for compliance vary, but it’s estimated that shipping companies face potential penalties ranging from €0.5 million to €5 million per vessel per year for non-compliance. These costs, combined with retrofit investments, could significantly impact the bottom line for shipping firms, particularly smaller operators.

Benefits of Onshore Power

Utilising onshore power supply (OPS) offers significant advantages over running ships' auxiliary engines while at berth. One of the primary benefits is the reduction of emissions, including nitrogen oxides (NOx), sulphur oxides (SOx), particulate matter (PM), and greenhouse gases like carbon dioxide (CO2). According to the EPA, "Shore power can effectively reduce ship pollutant emissions at berth."

In addition to lowering emissions, OPS also minimises noise pollution from ships' engines, improving the quality of life for nearby communities. Furthermore, it eliminates the need to burn marine fuel while at berth, resulting in substantial cost savings for shipping companies.

Port Infrastructure Needs

Enabling onshore power supply (OPS) at ports requires significant infrastructure investments. Key requirements include:

1. Electrical substations: Ports need to construct or upgrade substations to provide the high-voltage power required by ships. As per the Overview of Ports' Sustainable & Shore Power Ambitions, substations typically range from 10-20 MVA capacity.
2. Cabling: Heavy-duty cabling must be laid to transmit the power from substations to individual berths. This cabling is often run underground or mounted on structures along the wharf.
3. Ship-shore connections: Berths need to be outfitted with cable management systems and connection points to plug into visiting vessels. Standardised connections help ensure interoperability between ports and ships.

The extent of upgrades depends on the port's existing electrical infrastructure and the number of OPS-enabled berths planned. Coordinating these capital-intensive projects while minimising disruptions to ongoing port operations is a major challenge.

Costs for Ports

The upfront investment required by ports to install onshore power supply (OPS) infrastructure can be significant. According to Sustainable World Ports, the cost of transporting electricity from the local grid to a port terminal and setting up the necessary connections can range from $300,000 to $4 million per berth, depending on factors like the port location and power requirements.

In addition to the capital expenditure for electrical infrastructure, ports will also incur operational expenses related to maintenance, electricity consumption charges, and staffing for OPS operations. However, funding and financial incentives may be available from national governments or regional bodies like the EU to support the transition to sustainable port operations.

While the initial costs are substantial, the long-term benefits of reducing emissions and achieving regulatory compliance make investing in OPS a strategic imperative for forward-looking ports. Ports can explore financing options, collaborate with shipping lines on cost-sharing models, and leverage available grants or subsidies to make the required investments more manageable.

Port-Shipping Line Collaboration

Effective implementation of onshore power supply (OPS) will require close collaboration between ports and shipping lines. Joint planning is crucial to ensure compatibility between shore-side infrastructure and vessel power systems. 

Coordination is also needed for load balancing and power management. Ports will need to work with shipping lines to forecast electricity demand based on vessel schedules and berthing plans. This will help optimise grid capacity utilisation and avoid overloads. Sharing real-time data on power consumption patterns can further enhance operational efficiency.

Cross-industry collaboration forums can facilitate knowledge sharing, establish best practices, and drive standardisation efforts. Aligning stakeholders' interests and fostering a collaborative mindset will be key to overcoming the logistical and technical challenges of scaling up OPS across the EU.

Technical Challenges

One of the key challenges in scaling up onshore power supply (OPS) is ensuring adequate and reliable electricity supply at ports. Many ports may need to upgrade their electrical infrastructure, including substations and distribution networks, to handle the increased power demand from ships at berth. This can involve significant investments and coordination with local utilities.

Another challenge lies in the compatibility between ships' electrical systems and the shore-side power supply. Currently, there is a lack of global standards for voltage levels, frequencies, and connection interfaces, leading to potential mismatches. Efforts are underway to establish harmonised standards, such as the IEC/ISO/IEEE 80005 series, but widespread adoption across the maritime industry is still needed.

Power management is also a concern, as ships' electrical loads can fluctuate significantly during operations. This variability may require advanced control systems and energy storage solutions to ensure stable and efficient power delivery from shore. Dynamic load management is a key challenge for renewable energy-driven marine vessels, which is relevant for OPS as well.

Leading OPS Ports

Several ports in Northern Europe have emerged as pioneers in implementing shore power infrastructure for vessels. The Port of Hamburg has been at the forefront, offering high-voltage shore power facilities since 2016. It has equipped multiple terminals to provide emissions-free power to ships at berth, reducing air pollution in the city.

The Norwegian ports of Oslo and Kristiansand have also made significant strides. Oslo recently completed a shore power plant capable of supplying cruise ships and ferries, while Kristiansand has had shore power available since 2021. These initiatives align with Norway's goal of becoming one of the world's most sustainable cruise destinations.

Lessons learned from these early adopters include the importance of close collaboration between ports and shipping lines, securing sufficient grid capacity and renewable energy sources, and establishing international standards for shore power connections. Overcoming technical challenges, such as harmonising voltage levels and frequency requirements, has been crucial for widespread adoption.

Roadmap to Compliance

The FuelEU Maritime regulation sets out a clear timeline for the implementation of onshore power supply (OPS) requirements. As per the European Sea Ports Organisation (ESPO), 2030 is the deadline for ports in the Trans-European Transport Network (TEN-T) to provide shore-side electricity supply for container ships and passenger vessels.

Ports and shipping companies will need to carefully plan their transition to ensure compliance with the regulation. Ports will have to undertake feasibility studies, design OPS infrastructure, secure funding, and carry out installation works in phases leading up to 2030. Shipping lines will need to assess their fleet requirements, initiate retrofit programs, and train crew for new operational procedures.

A collaborative approach between ports and shipping companies will be essential for a smooth transition. Joint working groups, data sharing, and coordinated investment plans can help align priorities and ensure interoperability. Pilot projects at major ports can provide valuable learnings for widespread adoption of OPS across the EU.

Sustainability Benefits

Onshore power supply (OPS) plays a vital role in decarbonising the maritime sector by enabling ships to shut down their auxiliary engines while at berth and plug into shore-side electrical power. This eliminates emissions of greenhouse gases, particulate matter, and other pollutants that would otherwise be generated by the ships' engines. 
 

Beyond just complying with the FuelEU regulation, investing in OPS infrastructure presents an opportunity for ports and shipping lines to future-proof their operations and demonstrate their commitment to sustainability. As pressure mounts from regulators, customers, and the public to reduce the environmental impact of maritime activities, OPS can be a key strategy in the industry's decarbonisation roadmap. It paves the way for the adoption of alternative marine power sources, such as electric and hydrogen-powered vessels, by providing the necessary shore-side infrastructure.