Gasum’s biogas value chain ensures continuous supply for maritime customers

The maritime industry is facing unprecedented regulatory pressures, with several new directives and regulations introduced, many targeting maritime emissions for the first time. For example, European Union’s FuelEU Maritime regulatory package requires maritime operators to cut down their emissions significantly or face the prospect of heavy penalties. 

Additionally, the International Maritime Organization has set binding targets to reduce emissions, while voluntary reductions driven by consumer demand are also increasing. According to Boston Consulting Group’s studies, 71% of freight buyers are willing to pay a premium to lower emissions, reflecting a growing commitment to sustainability.

“For the first time, shipping operators are being required to reduce emissions. FuelEU Maritime mandates that shipowners and shipping companies lower the greenhouse gas intensity of their fuels, effectively requiring them to purchase biofuels. Large-scale electrification and synthetic fuels remain future options but are not yet viable today”, explains Jani Arala, Gasum’s Solutions Lead.

The challenge of biofuel scarcity

Reports indicate a looming scarcity of biofuels due to increasing regulatory targets and high demand from the aviation, maritime, and road transport sectors, all competing for the same limited feedstocks. The European Union’s introduction of new regulations without a combined impact assessment has added to this challenge. To better understand the cumulative effects of these policies, Gasum has proactively conducted its own impact assessments.

The slower pace of electrification than originally anticipated in road transport has further intensified demand for biofuels. Regulatory constraints restrict the use of food and crop-based raw materials, leaving waste-based feedstocks as the primary option. If the IMO measures come into play in addition to the different EU emission reduction targets, there might be a significant shortage of biofuels and other alternative fuels from 2030 onwards.

“As both a gas and waste management company, Gasum is uniquely positioned to address these challenges. We handle and process over one million tons of waste into biogas annually and have invested more than a billion euros in infrastructure to ensure a reliable supply chain from production to delivery. Our network of biogas plants and bunkering vessels provides resilience, helping to secure availability even amid market disruptions”, Jani Arala says. 

Gasum aims to deliver up to 7TWh of biogas by 2027

Gasum continues to expand and enhance its biogas capacity across the Nordics. The new Götene plant in Sweden and expansion into Denmark demonstrate Gasum’s commitment to strengthening its infrastructure. This development is a key step toward Gasum’s goal of delivering 7 TWh of biogas to the market by 2027.

Gasum’s extensive network of biogas plants provides a strategic advantage. Unlike companies dependent on a single facility, Gasum’s multiple plants ensure a stable supply even during maintenance or disruptions. Combined with significant infrastructure investments, this network positions Gasum as a reliable partner for maritime customers.

Additionally, the European Commission encourages long-term biofuel supply contracts to ensure market stability, investment certainty, and compliance with sustainability targets.

“As the maritime industry navigates regulatory challenges and biofuel scarcity, Gasum’s comprehensive biogas value chain offers a dependable solution. We are also advancing e-fuels and increasingly securing long-term contracts, helping to ensure supply stability for our customers”, Jani Arala concludes.