LBM in Maritime: From Compliance Fuel to Strategic Asset

As FuelEU reshapes maritime regulation, Liquefied BioMethane (LBM) is emerging as a fuel that delivers both compliance and competitiveness. It turns regulatory pressure into opportunity through strong performance, economic value, and full traceability.
Written by
Garima Kishore
Published on
October 22, 2025

LBM’s Ascent in Maritime: How FuelEU Is Redefining Compliance and Opportunity

The European maritime sector is entering a new era of compliance and climate responsibility. With the enforcement of the FuelEU Maritime Regulation, ships operating on EU-linked voyages are now subject to strict greenhouse gas (GHG) intensity limits.

But amid these regulatory headwinds, one fuel is charting a course to commercial success: Liquefied BioMethane (LBM).

From Niche to Necessity: LBM’s Compliance Power

Unlike many alternative fuels struggling to keep pace with regulatory tightening, LBM is outperforming expectations.
Recent data show GHG intensity levels between 16 and 30 gCO₂e/MJ depending on engine type, far below FuelEU’s 2025 cap of 89.34 gCO₂e/MJ. Even accounting for methane slip, LBM remains a compliance-positive fuel by default.

This opens the door to a new mechanism called compliance pooling.
Under FuelEU, vessels that exceed their GHG targets can generate surplus credits that can be traded or transferred within a pool. A single LBM-powered ship can offset the deficits of more than 30 conventional LNG or heavy-fuel vessels.

In this new paradigm, LBM becomes both a compliance tool and a strategic asset.

Economics That Work

LBM’s appeal is not only environmental but also economic.
When combined with Dutch HBE (renewable fuel) incentives, pooling values could reach $470 to $590 per metric ton for intra-EU routes.
Add the exemption from EU ETS (Emissions Trading System) costs thanks to LBM’s zero carbon factor and the case for switching strengthens further.

For dual-fuel LNG vessels, transitioning to LBM offers a cost-efficient and regulation-ready pathway with minimal technical adaptation.

Scaling Through Innovation

Industry leaders are already charting this route.
Operators such as Wasaline and Viking Line run daily LBM-fueled voyages, while UECC targets fleet-wide GHG intensity reductions to 41 gCO₂e/MJ by 2030, with LBM as a cornerstone.

Upstream, suppliers like Gasum and Titan are investing in new production and bunkering infrastructure, ensuring scalability keeps pace with demand.
At the same time, pooling strategies and book and claim systems are enabling early adopters to monetize compliance surpluses, supporting lagging fleets and accelerating industry alignment.

A Look Ahead

LBM proves that decarbonization in maritime is not a cost but an opportunity.
As regulatory frameworks mature, shipowners are seeking not only low-carbon fuels but also verified, traceable and strategically advantageous options that sustain long-term competitiveness.

This is where Heeding Climate Solutions comes in.
Heeding is building a next-generation digital B2B platform to simplify sustainable fuel sourcing and compliance orchestration across sectors including maritime. Through intelligent AI-based matchmaking, certified suppliers and blockchain-backed traceability, the platform aims to make strategies like pooling and carbon credit integration accessible, automated and AI-powered.

As LBM gains traction, the maritime industry’s transition is no longer just about meeting targets. It is about turning compliance into advantage. Early movers will not only reduce emissions but also unlock new economic and strategic value in the decarbonized era of shipping.

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