LBM's Ascent in Maritime: How FuelEU Is Redefining Compliance—andOpportunity

The European maritime sector isentering a new era of compliance and climate responsibility. With theenforcement of the FuelEU Maritime regulation, ships operating onEU-linked voyages are now subject to strict greenhouse gas (GHG)intensity limits. But amid these regulatory headwinds, one fuel ischarting a course to commercial success: Liquefied BioMethane(LBM).

From Niche to Necessity: LBM’sCompliance Power

Unlike many alternative fuels thatstruggle to keep pace with regulatory tightening, LBM is turningheads with its overperformance. According to recent data, the GHGintensity of LBM ranges between 16 and 30 gCO2e/MJ depending onengine type, dramatically lower than FuelEU’s 2025 cap of 89.34gCO2e/MJ. Even at the higher end of methane slip, LBM comfortablybeats the target, making it a rare example of a fuel that iscompliance-positive by default.

This opens the door to a burgeoningmarket mechanism known as compliance pooling. Under FuelEU,vessels that exceed compliance targets can generate surplus creditsthat may be sold or transferred within a pool of ships. A singleLBM-powered vessel can theoretically offset the deficits of over 30conventional heavy fuel oil or LNG-fueled vessels. It is a strategicasset and not just a fuel.

Economics That Work

LBM's compliance appeal is only halfthe story. The economics are just as compelling.

Market estimates suggest that LBM,when paired with Dutch HBE (renewable transport fuel) rebates, couldyield pooling values between $470 and $590 per metric ton forintra-EU voyages. Add in the exemption from EU Emissions TradingSystem (ETS) charges thanks to LBM’s zero carbon factor and thecost advantage becomes clearer still. For dual-fuel LNG vessels,switching to LBM is not only feasible, but also increasingly thecheapest path to regulatory alignment.

Scaling Through Innovation

Shipowners are already moving.Companies like Wasaline and Viking Line are operating dailyLBM-powered routes, while UECC is aiming to bring its fleet-wide GHGintensity down to 41 gCO2e/MJ by 2030, with LBM playing a centralrole. Pooling strategies and book-and-claim systems are giving thesecompanies a way to monetize their early compliance efforts, whilealso helping laggards in the fleet avoid penalties.

Further upstream, suppliers likeGasum and Titan are investing in production and bunkeringinfrastructure, ensuring that the demand surge doesn’t outpacesupply.

A Look Ahead

LBM is proving that decarbonizationin maritime isn’t a zero-sum game, it is an opportunity to innovateand profit while staying compliant. It is also changing the nature offuel procurement. Companies are now seeking not just fuel, butverified, traceable, and strategically advantageous fuel optionsthat can support long-term compliance.

This is where platforms like Heedingcome in. Although still in development, Heeding is building anext-generation B2B platform designed to simplify sustainable fuelsourcing for the maritime industry and beyond. Maritime is one of ourkey sectors, and LBM will be among the fuels made available tocustomers via verified suppliers. Our goal is to make compliancestrategies like pooling and carbon credit integration accessible,automated, and AI-powered.

Final Thought

As LBM gains traction, maritimedecarbonization isn’t just about meeting regulations. It is aboutfinding leverage in a changing market. And for those that move early,the rewards could be significant.