Ahti Pool: Aiding with compliance to FuelEU Maritime

Full transcript of the interview

The Motorship: Welcome to another edition of The Motorship podcast we have Risto Kariranta the CEO of Ahti Pool. Why is Ahti Pool around? What is FuelEU Maritime really about. And why is it needed? Ahti Pool

Risto-Juhani Kariranta, CEO of Ahti Pool: Yeah. So fewer maritime regulation is regulating the carbon intensity of the energy used onboard the vessels for the vessels calling European ports starting January this year.

And basically the idea of the regulation is that it starts to to to to push vessels to use low carbon fuels, maybe a liquid biofuels or or some other, more, more advanced fuels like biomethane green, methanol and maybe some some day even ammonia.

But this regulation, it has a flexibility measure. So basically it was requested to make these transition easier for companies and  that’s called pooling.

And pooling regulation is basically just saying that instead of calculating this carbon intensity target for individual vessel, you can pool vessels basically forming a group of vessels where you do this target calculation which then in practise means that OK you can have couple vessels that are doing.

Much more than needed by the by the regulation and and then the other vessels can still continue consuming conventional fields, yeah.

TMS So rest I remember. I remember the last time we spoke and you said basically if you’ve got one very green ship, it can offset quite a few. And I think it was something that was quite a surprising number up to sort of 65 plus. Can you explain how that works, how one green ship can offset so many please?

RK Yeah. So basically for for each and every, every few will be in there. In this regulation, we calculate carbon intensity and and then basically depending on the energy energy consumed and this carbon intensity we we we get get to the balance balance that each green vessels can generate. And now for example, OK.

If we look at green methanol or biomethane.

This number can be like close to 6570 vessels that you one vessel could keep on this.

That part much more efficiently than once in a while, yeah.

TMS: So if you give me an idea there that there’s there’s a demand, can you can you talk about some of the clients? I’ve seen some of the press releases, I mean there’s there’s demand for it. What sort of clients these global fleets are we we think about signing up to RTP perhaps if you can share them, if you’re allowed?

RK: Yeah, it’s actually very versatile client base. So we have a have a tankers joining, we have dry cargo vessels joining. Then we have liner vessels that are in in the pool mostly for generating compliance. So it’s really it’s not restricted to some certain shaped type or size or trading area. So this is very, very suitable for all ships. Maybe what I could say that most of our customers are small and mid sized companies

To give you some kind of idea about the customer base

TMS: Good. I mean, you mentioned there that there’s a bit of an issue with biofuels and even if you do source them, they might not get past FuelEU Maritime verification process. So when it comes to the sort of verification of fuels including their origin, how does article deal with that? Is that something you do in house or do you perhaps outsource that to to third parties the verification aspects?

RK: That yeah, that we work closely with all relevant verifiers. So so mainly in our our field that means the classification societies and there are a couple commercial verifier bodies that work together with us. The actual fuel verification that goes more to the the table of the of the fuel supplier. So they need to make sure that that the fuel is fulfilling their ISC CEU certificate requirements and and provide a stamp for that. But after that.

Step then for us to basically utilise that over compliance in our pool, then we need a proof which is then stamped by one of these accredited verifiers.

TMS: Yeah, beause, that’s how this thing works. One thing I’m interested in hearing about is how the what’s powering artifool. He tell us a little bit about the software. I think you’ve got a bit of a software background. You’re at Napa and places like that before. What’s actually powering RC port, you can tell us a little bit about the software,

RK: We have a have a software which is basically basing itself on on them calculation engine where we have implemented the the regulatory calculations which are not super straightforward. So basically the whole company started from generating scan R calculations for this and some other regulations for our customers and this is now being utilised for for monitoring our pools and and where making sure that we have a sufficient level of compliance.

But that’s all. Not all the software itself, it’s not sufficient to run a pool, we need to have a strong legal framework as well. So all the contracts in place, so that’s the part that we have been working quite a lot and helped awful lot with our customers to have the contracts in place because this also might involve for example a time Charter that wants to put a vessel in the pool which is owned owned by somebody else and they need to agree all the terms between.

Owners and the Charter. So we have been helping there quite a lot our customers.

TMS: So to Ahti Pool, it’s setting up these pooling arrangements, but it’s also looking after, as you say, the legal issues and stipulations, that’s all done by Ahti Pool

RK: Yeah. So we are Turnkey solution and we take care of basically everything we we find the partners to turn to pool we have the contractual framework, we have the software we help to monitor that pool is working as as planned and keep the transaction records for our customers. So that basically everything where we can help we we aim to help so that.

It’s as easy as possible. So for our customer and this is now super easy.

For example, now this global fleet joining our set up, it’s like making electricity contract now. So basically just set up the commercial terms and then we start to measure that how much compliance the consumer get invoice for that and of course security is that this compliance exists and finally you get your letter of compliance by the end of the year. For each vessels participating this arrangement.

TMS: Given that FuelEU maritime, which as you said at the beginning came in this year, it’s going to become more punitive as time goes on. How do you sort of foresee Ahti Pool as a company developing with that increased sort of fines that FuelEU Maritime is going to be imposing next few years or next 10-15 years or sp?

RK: Yeah. Well, we have a couple interesting steps. So 2030 we have the next increase of the target. So then we have a 6% reduction target and in 2035 we have then 14.5% reduction target. So those steps definitely.

Pooling is extremely beneficial on those stages when, when, when, when increasing demand is because now first of all, OK, these ultra low carbon vessels needs to be supporting so many other vessels to so that everybody can reach these targets, the, the, the liquid biofuels might just be sufficient for this first five years to support shipping.

But there are other users for liquid bio biofuels in the world, like airline traffic and road traffic

TMS: So, crystal ball time going forward, I’m sorry, I’m wondering there’s, I imagine it might be greater demand for RT pool as the as the as the regulation intensifies perhaps? Would that not be the case, it seems.

RK: Yeah, definitely. And now of course, we have also discussed from the IMO that include somewhat similar.

Concept that we have had in FuelEU Maritime so we it might be that we expand next to support on IMO regulation based pooling, but OK that time will tell how the IMO decisions will go. But such proposals are on the table there as well.

TMS: Fantastic. Well, Risto hat’s been fantastic. I’m gonna say that’s a wrap. Thank you very much for your time. That’s been grand and have a fantastic rest of the day.

RK: Thank you very much. Thank you.

Ahti Pool: Aiding with compliance to FuelEU Maritime