Insights from Our January 2025 LinkedIn Live on FuelEU Maritime and Wind-Assisted Propulsion

Our recent LinkedIn Live event generated a high level of engagement around the growing adoption of wind-assisted propulsion. Currently, around 55 large vessels are equipped with wind-assisted propulsion systems, and another 80 are in the pipeline. These systems can deliver fuel savings of 5-20% and achieve a return on investment within sub-5 to 7 years.

These impressive figures underscore the financial and environmental benefits of adopting these systems, making them a vital component of maritime decarbonisation strategies.

3 Key Takeaways from the LinkedIn Live Q&A:

1. Regulatory Incentives and Third-Party Support: Insights from Gavin Allwright, Secretary General of the International Wind Ship Association

How does FuelEU Maritime incentivise wind-assisted propulsion, and what role do third parties play in this process?"

FuelEU Maritime is structured as a progressive carbon intensity regulation, requiring ships to achieve a 2% reduction in carbon emissions by 2025, increasing to 6% between 2030 and 2035. The regulation is already in effect, and non-compliance carries a penalty of €2,400 per ton of VLSFO equivalent.

From a wind propulsion perspective, FuelEU Maritime acknowledges wind as an energy provision measure rather than just an energy efficiency measure. Instead of integrating wind propulsion into the carbon intensity formula, the regulation assigns a wind reward factor ranging from 1% to 5%, depending on the system’s installed capacity and energy contribution.

For example, if a wind propulsion system delivers 10% of a vessel’s power needs, it receives a 3% increment, adjusting the vessel’s carbon intensity factor to 0.97. This not only ensures compliance with the 2025 target but also generates a 1% surplus that can be banked, pooled, or traded.

Gavin also highlighted the vital role of third-party expertise in maximising these benefits. Companies like Njord provide essential independent assessments, ensuring shipowners fully capitalise on wind propulsion benefits within the FuelEU framework. Additionally, since many manufacturers do not handle installations, shipowners rely on Njord for a seamless installation process—ensuring that wind-assisted propulsion is properly integrated, optimised, and managed.

With proper planning, shipowners can not only meet regulatory targets but also improve their commercial position through smart use of compliance pooling and surplus trading mechanisms.

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2. Chartering Perspective: Insights from Kate Foster, Senior Charterer - Freight Solutions of Maersk Tankers

"How can chartering companies and shipowners collaborate on wind-assisted propulsion?"

Kate discussed the crucial role of collaboration between chartering companies and shipowners, highlighting several key benefits:

• Financial Incentives – Chartering companies can gain financial advantages by partnering with shipowners who invest in wind-assisted propulsion, as these technologies significantly reduce fuel consumption and operational costs.

• Long-Term Sustainability Goals – Charterers increasingly align with global sustainability initiatives. By selecting vessels with wind-assisted propulsion, they enhance their corporate social responsibility profile and reduce their Scope 3 emissions.

• Operational Flexibility & Efficiency – Wind-assisted propulsion optimises voyages, enabling charterers to improve scheduling efficiency and minimise delays caused by fuel-related constraints.

• Risk Management & Compliance – Charterers can mitigate risks associated with fuel price volatility and environmental regulations by working with shipowners who have proactively invested in compliant, fuel-efficient vessels.

“We are seeing more charterers becoming proactive in their approach to sustainability – specifically looking to reduce emissions in their value chain. By working closely with shipowners who adopt wind-assisted propulsion, the industry can collectively achieve greater fuel efficiency and reduce its environmental impact” Kate remarked during the session.

3. Financial Viability, Crew Training, and Opportunities: Insights from Jonas Rasmussen, Client Director of Njord

‍"What are the financial implications of adopting wind-assisted propulsion, and how does FuelEU Maritime contribute?"

Jonas emphasised the compelling financial benefits of wind-assisted propulsion, highlighting its potential for significant fuel savings and a rapid return on investment. He pointed out that integrating these technologies can lead to a sub-five-year ROI, making them an attractive financial decision for shipowners.

Beyond the financial advantages, Jonas stressed the critical role of crew training in effectively implementing these systems. Proper training ensures that crews understand and operate wind-assisted propulsion efficiently, maximising its benefits while maintaining seamless operations.

Jonas also highlighted the opportunities presented by FuelEU Maritime. The regulation incentivises wind-assisted propulsion by allowing ships to account for energy savings, aligning environmental goals with financial gains. This creates a unique opportunity for shipowners to future-proof their operations while benefiting from immediate cost savings.

‍"We've seen firsthand that proper training and strategic planning can turn wind-assisted propulsion into a major asset. It's not just about compliance—it's about leading the way to a more sustainable future," Jonas remarked.  

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Conclusion

Our LinkedIn Live event showcased the transformative potential of wind-assisted propulsion. From financial viability and regulatory incentives to charterer-shipowner collaboration, these discussions underscored the growing momentum behind wind-assisted propulsion as a commercial and regulatory advantage.

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Want to Learn More?

✅ Considering wind-assisted propulsion for your fleet? Reach out to Njord for expert guidance on financial modelling, regulatory compliance, and seamless installation.

✅ Missed the live session? Watch the full recording here!