Peter Allen from Fast Carbon Investments presented on the H2C global attribute market for low carbon fuels, launched about a year ago.

The market aims to align fuel producers with shipping companies and cargo owners to facilitate decarbonization across the supply chain.

He highlighted the financial challenges posed by the IMO’s MEPC meeting in October, which delayed global maritime regulations, while European shipping faces EU ETS regulations starting this year.

By 2035, there is an expected gap of 2.6 million metric tons per annum in low carbon fuels in Europe, leading to compliance costs of 3 to 5 billion euros per annum for shipping companies. Allen discussed compliance costs for biodiesel and LNG vessels, emphasizing the need for fuel switching to mitigate these costs. He noted the impact of various global regulations on shipping companies and the necessity for forward agreements to secure access to ultra-low carbon fuels.

The H2C market combines the needs of ship owners, low carbon fuel producers, and cargo owners, utilizing NASDAQ technology and a partnership with Lloyd’s Register for verification.

The market structure includes green premium certificates for compliance and elimination, allowing for cost spreading across multiple beneficiaries. Allen concluded by inviting participants to explore demo opportunities for their fuel production projects.