OceanScore has the answers to the maritime regulatory conundrum

These regulations are intended to guide shipping companies in transitioning towards greener fuel sources, but they also bring significant challenges for operators who must navigate compliance, fuel choices, and costs. OceanScore, a company providing compliance solutions, is offering innovative ways to help shipping companies meet these challenges and optimise their compliance strategies.

Albrecht Grell (pictured), managing director of OceanScore, explains that the company’s approach is distinct in its ability to blend strategic planning with day-to-day operational management. While many companies in the market focus on providing compliance services, OceanScore’s unique proposition lies in its combination of a strategic planner and operational compliance tools.

OceanScore’s most recent offering is the Compliance Manager, a tool designed to handle the intricacies of both FuelEU Maritime and EU ETS in one package. It allows shipping companies to strategically plan their fuel choices, from biofuels to synthetic options, and optimise their operations accordingly. The Compliance Manager goes further by incorporating elements of financial management, ensuring that shipping companies can effectively manage risks, invoicing, and payments related to carbon allowances and fuel-related costs.

Part of this strategy, according to Grell, lies in OceanScore’s FuelEU Planner. This tool helps companies model various scenarios, including the use of biofuels, the costs of carbon credits, and the availability of different fuel types. “It’s a strategy optimiser,” says Grell, “helping companies draft the best approach to comply with FuelEU Maritime regulations and plan for future fuel use in a commercially viable way.” This tool sets OceanScore apart from competitors, as it’s specifically designed to integrate various operational and financial factors into a single planning solution, something other companies offering compliance services may not provide.

While companies like Ahti Pool and BetterSea focus on offering fuel pooling services, OceanScore takes a more nuanced approach to pooling, offering it as a free service for clients rather than commercialising the process. Grell is firm in his belief that the pooling business model may not be as prominent as many expect, especially since many shipping companies already engage in pooling arrangements based on long-standing relationships. “Most pools will be internal,” he explains, “and I don’t think it’s necessary to commercialise that service.”

OceanScore’s comprehensive approach ensures that clients can manage the complexities of both FuelEU Maritime and EU ETS regulations under one roof, streamlining compliance and reducing the administrative burden. The platform seamlessly integrates data from verifiers, commercial systems, and financial processes, giving operators complete transparency into their compliance status and financial positions.

A crucial aspect of compliance under EU ETS is managing the price risk associated with carbon emissions allowances. Grell highlights the importance of hedging as a way for shipping companies to protect themselves against the volatility in the carbon credit market. By using forward trading and incremental purchases, companies can lock in prices for EUAs (EU Allowances) at an agreed-upon rate, mitigating the risk of price fluctuations as they fulfil their contractual obligations with customers. This kind of risk management is essential when operating in a market where the cost of carbon allowances can fluctuate significantly, impacting both profitability and compliance.

Moreover, Grell emphasises the interdependencies between FuelEU Maritime and EU ETS. While FuelEU focuses on fuel-related decisions, such as the use of biofuels, EU ETS is more concerned with the process of carbon credit trading. The two regulations are intertwined, and shipping companies must consider the impact of one on the other. For instance, switching to biofuels under FuelEU can reduce the EU ETS costs, but it also affects the overall fuel costs due to the calorific value differences of biofuels. As such, OceanScore’s Compliance Manager is designed to optimise both operational and strategic decisions in light of these interdependencies.

The introduction of new fuel types, such as biofuels, into the debate has been contentious. Given the recent protest to the IMO regarding the use of biofuels, many advocate for the reduction of these in maritime operations, especially non-waste-based biofuels, Grell suggests that the conversation is somewhat academic. He acknowledges the need for sustainability but argues that biofuels, particularly waste-based types, remain a viable short-term solution. “The debate on waste-based versus non-waste-based biofuels is somewhat irrelevant now,” he notes, pointing out that the production process for biofuels has evolved and that waste-based biofuels can be made from previously non-waste sources.

As the regulatory landscape continues to evolve, OceanScore’s tools, including the Compliance Manager and FuelEU Planner, provide shipping companies with the necessary infrastructure to manage their compliance obligations effectively. With an impressive customer base representing over 10% of the total fleet subject to FuelEU and EU ETS, OceanScore is poised to continue playing a critical role in helping the maritime sector navigate the complex regulatory environment. The financial markets agree with OceanScore’s place at the forefront of shipping regulatory compliance as seen with its hugely impressive success in fund raising in recent years. The company recently raised millions of euros in a successful Series A round which saw participation from Stolt Ventures, Motion Ventures and Portline as firms clambered to get involved with this plucky solutions provider.