Dual-Fuel Engines: Dual Trouble or double opportunity?

With FuelEU regulations set to take effect in January and the IMO’s 2050 net-zero target drawing closer, EmissionLink Managing Director Philippos Ioulianou has warned that many dual-fuel vessels are not ready to meet the new era of real-time emissions compliance — risking both regulatory penalties and lost commercial opportunities.

“Dual-fuel engines offer enormous flexibility, LNG/VLSFO, methanol/MGO, but that flexibility brings complexity,” said Mr. Ioulianou. “Without the right systems and fuel management protocols, owners risk turning a decarbonization asset into a liability.”

While dual-fuel configurations can help operators balance regional regulations, fuel pricing, and emissions limits, they also introduce operational challenges. Fuels like VLSFO degrade quickly if not monitored, and switching between fuel types demands precise execution to avoid performance issues, non-compliance, or even engine damage.

The regulatory stakes are higher than ever. FuelEU will move compliance from an annual review to voyage-by-voyage scrutiny, requiring operators to know exactly what fuel was used, where, and how it performed. “Decarbonization is now a daily discipline,” said Mr. Ioulianou. “Anyone relying on spreadsheets or best guesses is already falling behind.”

EmissionLink’s technology helps shipowners consolidate live emissions data, align it with fuel usage, and produce an auditable trail for regulators, charterers, and commercial partners. This is becoming essential as charterparty clauses increasingly demand proof of fuel management and performance — with mismanagement already triggering disputes and costly de-bunkering.

When handled well, dual-fuel engines can provide commercial advantages, including the ability to generate FuelEU compliance credits that can be traded or banked, as well as access to green corridor projects and ESG-aligned cargo. But Mr. Ioulianou warns that the industry has just months to close the gap between potential and reality.

“The next 12 months will reveal who’s serious about decarbonization and who’s hoping cleaner fuel alone will be enough,” he said. “Burning cleaner fuel badly is still a failure — and in the current regulatory climate, it’s a risk no one can afford to take.”