United European Car Carriers (UECC), a leader in sustainable shortsea RoRo transport, achieved a massive reduction in well-to-wake CO2 emissions in 2024 mainly through bunkering high-impact liquefied biomethane (LBM) on LNG-fueled vessels under its Sail for Change initiative supported by major European vehicle manufacturers.
The company’s latest annual environmental data shows its emissions fell by more than 107,000 tons of CO2 last year, marking a substantial increase of 70% over the reduction of over 63,000 tons achieved in 2023.
UECC is targeting an additional 50% cut in emissions in 2025, aiming for a reduction of nearly 155,000 tons as it works toward a 2030 goal of 187,000 tons. As Europe’s leading sustainable short sea RoRo carrier, the company is scaling up its use of alternative fuels across its modern, eco-friendly fleet to reduce emissions and regulatory costs for its customers.
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Meeting low-carbon logistics demand
“We continue to make major strides towards realizing our sustainability ambitions, supported by pioneering investments in green fuels and sustainable technologies, as well as energy efficiency measures in operations,” said Glenn Edvardsen, CEO of UECC.
These efforts have enabled us to provide our customers with progressively sustainable ship transport amid increasing demand for low-carbon logistics due to the imperative of decarbonization, driven by expanding green regulation with carbon pricing and increasing penalties for pollutive operations.
“By taking a leading role, UECC has positioned itself ahead of the market and is firmly on track with GHG intensity reductions exceeding regulations, enabling it to run a compliance surplus in relation to FuelEU Maritime, while also cutting costs significantly under the EU Emissions Trading System (EU ETS).”
UECC has enhanced its environmental performance by significantly increasing the use of alternative fuels, including biofuels, low-carbon LNG, and particularly LBM or bioLNG. These accounted for about 42% of fuel consumption on its fleet of 16 pure car and truck carriers (PCTCs) – both owned and chartered – in 2024, up from 34% in 2023. The company has now revised its alternative fuel use target to 58% by 2030 due to the superior emissions-reducing capability of bioLNG compared to other fuels. This shift is enabling carbon-neutral cargo transport for its clients.
BioLNG fueling sustainability drive
Masanori Nagashima, UECC’s Senior Manager of Business Planning & Sustainability, emphasized the central role of bioLNG in the company’s long-term decarbonization plan. The fuel is critical to achieving a 45% reduction in carbon intensity by 2030 from a 2014 baseline and ultimately reaching net-zero by 2040—ten years ahead of both IMO and EU mandates.
BioLNG is being bunkered on UECC’s fleet of dual and multi-fuel LNG PCTCs, three of which also feature battery hybrid capability. These vessels are part of UECC’s Sail for Change program, launched in 2023 with the involvement of major automakers including Toyota, Ford, and JLR. The company has also ordered two additional multi-fuel LNG battery hybrid newbuild PCTCs, slated for delivery in 2028, which are expected to join the initiative.
Nagashima pointed out that bioLNG provides strong emissions benefits because it is produced from manure-based feedstock. This offers high reductions in well-to-wake emissions, in line with FuelEU Maritime requirements that account for the full lifecycle of fuel from extraction to combustion.
“While this means there is increasing competition for the fuel in shipping, our first-mover role in procuring bioLNG puts us in an advantageous position to secure future volumes of the fuel through building relationships with suppliers.” Nagashima said.
To support its bioLNG usage, UECC has entered into a supply agreement with Dutch company Titan Clean Fuels for the delivery of at least 12,000 tons of ISCC-EU certified mass-balanced LBM during 2024 under the Sail for Change initiative.
Commercializing compliance surplus
UECC has calculated the overall carbon intensity of its fleet at 68 gCO2e/MJ using the FuelEU metric. This aligns with its interim target of a 25% reduction in carbon intensity by 2025. However, based on its current supply plan, UECC anticipates reaching 57 gCO2e/MJ in 2025.
This figure is significantly lower than the present FuelEU threshold of 89.3 gCO2e/MJ – a 2% decrease from the baseline of 91.16 gCO2e/MJ – and well below the future threshold of 77.9 gCO2e/MJ for 2035, which represents a 14.5% cut from the baseline.
“The low carbon intensity of our fleet means all of our vessels are expected to gain a C rating or above with the IMO’s Carbon Intensity Indicator (CII). It also gives us a significant compliance surplus under FuelEU that can be monetized through the regulation’s pooling mechanism, allowing a great commercial opportunity to offset regulatory costs for customers and eliminate FuelEU surcharges.” Nagashima explained.
About UECC
United European Car Carriers (UECC) is a leading provider of sustainable shortsea transportation services for cars and other rolling cargo in Europe. With a focus on innovation and sustainability, the company operates a fleet of eco-friendly vessels, including dual-fuel LNG and hybrid battery-powered PCTCs. UECC is committed to achieving net-zero emissions by 2040 while advancing sustainable practices in the shipping industry.
Source United European Car Carriers