This January 2025 live event navigates the intersection of FuelEU Maritime regulations and Wind-Assisted Propulsion Systems (WAPS).
Discussions highlight compliance through efficiency, bringing together key industry voices to explore financial benefits, regulatory drivers, and practical strategies.
Kate Foster
Senior Freight Trader, Maersk Tankers
Kate brings over 20 years of maritime experience, combining expertise in EU ETS compliance and business case modelling for green regulations. She also collaborates with the Maersk Mc-Kinney Møller Center for Zero Carbon Shipping.
Gavin Allwright
Secretary General, International Windship Association (IWSA)
Leading a 200-member organisation, Gavin offers insights on regulatory trends, wind propulsion technologies, and their adoption within the maritime sector.
Jonas Rasmussen
Client Director, Njord
Jonas specialises in maritime energy efficiency with over a decade of experience advising on technologies like WAPS, delivering insights into business case development.
Gain actionable insights by watching the session recording below, which provides:
-Practical strategies for FuelEU Maritime compliance.
-A comparative analysis of wind propulsion technologies.
-Examples of fleet-wide adoption and ROI case studies.
1. FuelEU Maritime as a Catalyst
FuelEU Maritime’s regulatory framework has become a launchpad for integrating wind propulsion technologies into commercial operations, helping shipowners reduce penalties while gaining financial and environmental rewards. Gavin Allwright explained, "FuelEU Maritime is designed to encourage not just compliance but innovation. By rewarding auxiliary technologies like wind propulsion with direct carbon intensity reductions, it offers shipowners both environmental and financial benefits. We've seen this shift push WAPS from a niche to a mainstream investment for many fleets."
2. Business Case Development
Return on Investment for WAPS can fall below five years, particularly for EU-trading vessels. Jonas Rasmussen shared, "We’ve seen specific examples where adjusting trading patterns in alignment with FuelEU incentives reduced ROI to under five years, making these investments more attractive to shipowners."
3. Technology Selection
Rotor sails, suction wings, and rigid sails dominate the market, with decisions tailored to vessel trading patterns and operational needs. Kate Foster emphasised, "It’s critical to match the technology to operational profiles, as seen in Maersk Tankers’ decision to choose suction sails due to air draft restrictions in their trading routes."
4. Crew and Operational Alignment
The transition to WAPS requires operational shifts and crew engagement. Gavin Allwright explained, "Crew buy-in is essential. While many systems are automated, operational adjustments such as navigation or mooring practices are inevitable and must be anticipated."
5. Global Implications
While currently regional, FuelEU Maritime may inspire similar frameworks globally. Kate Foster remarked, "The introduction of IMO midterm measures could amplify the business case for WAPS further, with global standards driving broader adoption and deeper reductions in greenhouse gas emissions."
The LinkedIn Live Event showcases the depth of expertise and collaboration required to navigate the complexities of FuelEU Maritime and WAPS adoption.
As Frederik summarises, "We hope today’s session provides a clear picture of how wind-assisted propulsion systems are incentivised under FuelEU Maritime and the steps required to integrate these technologies effectively. From exploring business cases to highlighting global trends, the discussion underscores the importance of both innovation and cooperation in meeting decarbonisation targets."
The session reinforces that while challenges remain, regulatory frameworks like FuelEU Maritime are already driving measurable change. By leveraging tailored technologies, fostering partnerships, and focusing on crew training, the maritime industry charts a sustainable path forward.
This is tied to the regulatory framework’s design. RFNBO fuels are treated as direct fossil fuel replacements, requiring a higher multiplier to offset their high costs and promote adoption. Wind is considered an auxiliary energy source and rewarded differently. Advocacy efforts continue to address this disparity, including removing the 5% cap in future revisions.
We encourage owners to leverage partnerships with WAPS providers and experienced consultancies like ourselves to ensure emissions reductions translate into operational and financial benefits.
FEUM should include mechanisms that reward actual performance data rather than theoretical calculations, particularly for wind propulsion. The review should also incorporate stronger incentives for collaborative models, such as compliance pooling and surplus sharing, and align with global regulations to drive standardisation.
As of January 2025, approximately 54-55 large vessels have WAPS installed, with another 80 in the pipeline. Fuel savings range from 5-20% based on trading patterns and vessel type. ROI typically falls within 5-7 years, but well-integrated systems, the combination with other Energy Efficiency Technologies and operational adjustments can reduce this further to a sub-5 year ROI.
Contracts should incorporate clauses for sharing costs and benefits. Examples include SHIPMAN agreements, time charter terms, and compliance pooling agreements. BIMCO is actively drafting clauses to reflect these developments, and owners can engage with BIMCO or use tailored agreements to ensure fair rewards for WAPS contributions. Njord has taken part in drafting actual terms between owners and charterers, so you could reach out to hear more and get guidance on actual examples.
Collaborative platforms or partnerships, like IWSA, enable WAPS adopters to pool data and develop AI-driven insights. Alternatively owners can access anonymised benchmarks and predictive tools through partnerships with us or similar, eliminating the need for large R&D budgets.
Penalties are €2,400 per ton of VLSFO equivalent, with annual increases of 10% for continued non-compliance. Enforcement typically occurs via entities responsible for EU ETS payments, with non-compliance risking exclusion from EU ports.
Initial collaboration between owners and WAPS suppliers is key to tailoring solutions to vessels' operational needs. Internally, aligning chartering departments and technical teams is critical to minimise downtime by integrating installations into dry docking schedules. Externally, cost-sharing models between owners and charterers or commercial operators can be formalised through contracts like SHIPMAN and compliance pooling agreements. Partnering with experienced consultancies like Njord ensures smooth integration and maximises ROI.
Insurance coverage for WAPS systems is evolving, with options for mechanical failures, operational risks, and installation issues. As adoption grows, premiums are becoming standardised, and coverage includes performance guarantees to mitigate owner risks.
Regions such as Asia and North America are observing FEUM closely. Adoption of equivalent regulations may hinge on the IMO's forthcoming measures in 2027, which could standardise global compliance pathways.
Guarantees could include ROI-linked performance benchmarks and warranties for reliability and system durability. Service contracts with periodic inspections and support ensure long-term operational efficiency.
WAPS adoption requires a holistic approach, including crew training to ensure operational efficiency. Njord advises integrating tailored training programmes into the implementation process, focusing on system operation, troubleshooting, and maintenance. Automated systems can reduce crew workload, but it's crucial to address resource gaps by planning for dedicated support during the initial rollout phase.
Currently, FEUM relies on theoretical assessments based on standardised calculation methodologies. While these provide an initial benchmark, there is ongoing advocacy to incorporate real-world data through tools like a Vessel Technical Index (VTI). Accurate performance measurement using weather-normalised data would ensure a fairer and more transparent reward system for wind propulsion technologies.
Our comprehensive analysis evaluates potential energy-saving devices (ESDs) for your vessel, considering over 30 advanced technologies. We factor in operational profiles, regulation compliance, fuel economy, cost implications, and investment returns, delivering a customised, holistic solution for fuel efficiency enhancement.
Our detailed approach includes thorough savings analysis, effectiveness assessment of individual technologies, and comprehensive commercial project valuations. We provide strategic supplier recommendations and timelines, culminating in a ready-to-implement project plan, tailored to your specific needs.
Our comprehensive service for ESD installations, whether in-port or at drydock. Our streamlined coordination, competitive equipment pricing, and reduced lead times ensure a hassle-free experience. With us as your single point of contact, shipowners receive an efficient, end-to-end solution, maximising their investment returns.
Our service includes detailed analysis of ESDs, matched to your vessel's specific operational needs from over 30 cutting-edge technologies. We track the impact on regulations, monitor fuel savings, and evaluate total costs and ROI, ensuring ongoing optimisation and enhancement of your fleet's performance.