Prospects for liquefied natural gas (LNG) as a marine fuel

By | 2017-07-18

LNG: the best solution to meet the environmental requirements

Marine transport contributes significantly to atmospheric emissions. To address this issue, the International Maritime Organization (IMO) has set new, stricter environmental standards for greenhouse gas emissions for shipping. In Canada, the regulations will require vessels to reduce their sulfur content of emissions by 2020.

Liquefied natural gas (LNG) has long been regarded as a simple modality for large long-distance carriers and has become a very promising marine fuel in Canada and around the world. At present, LNG is one of the best alternatives for shipowners because of its environmental assets and significant economic benefits.

The use of liquefied natural gas as a marine fuel for ships can meet and exceed current environmental airborne emissions standards. In fact, it emits virtually no air pollutants or fine particles, while reducing GHG emissions by up to 25% compared to the marine diesel. Moreover, it poses no potential hazard to the environment. The technologies required to use LNG as a marine fuel are proven and available on the market, including quieter biofuel and natural gas-fueled engines suitable for many types of coastal and deep-sea vessels.

Bio-LNG, a 100% renewable resource for the future

A growing “green” resource is increasingly used: bio-LNG (liquefied biomethane), produced from organic waste (agricultural, agri-food, household, sewage sludge, etc.). Biomethanisation plants can thus produce liquefied biomethane for the same uses as LNG by emitting no fine particle and reducing greenhouse gases by 90% instead of 25%. Being locally produced, bio-LNG helps to make the territories more energetically autonomous and to develop a circular economy.

Several companies have already embarked on bio-LNG over the world, including Gasrec in the United Kingdom, Göteborg Energy in Sweden, BIOGNVAL in France, Rivière-du-Loup with its first public supply station for liquefied biomethane, and Wärtsilä in Norway.

LNG in the Canada maritime strategy

Published in 2014, the report Liquefied Natural Gas: A Marine Fuel for Canada’s West Coast, highlights the benefits of using liquefied natural gas (LNG) as a cost-effective and green fuel for the marine sector in Canada. According to the report, all technologies required for the use of LNG as marine fuel are proven and commercially accessible.

“Canada has a significant advantage in terms of natural gas resources, according to Alicia Milner, Alliance canadienne pour les véhicules au gaz naturel President and project steering committee President. Enabling the marine sector to access LNG is a smart and strategic move for Canada. British Columbia is well positioned to become a prime North American destination for LNG fueling and Port Metro Vancouver to become a leader in this field.”

According to an adoption scenario, operating 150 LNG vessels on the West Coast by 2025 would result in a new application equivalent to 8.5% of natural gas in British Columbia in 2012.

First Groupe Desgagnés’s LNG ship in Québec: The N/C Damia Desgagnés

Launched in 2016, the N / C Damia Desgagnés, is the Groupe Desgagnés’ first ship refueled with liquefied natural gas (LNG). As a precursor to the development of the LNG sector as a fuel in the marine sector in Quebec and Canada, Groupe Desgagnés currently has four vessels that meet strict environmental standards.

LNG on boat with Gaz Métro

On May 18, 2017, in order to opt for a less emissive fuel, Gaz Métro and the Port of Montreal announced the accessibility of an LNG supply solution as a marine fuel for the Port de Montréal. Groupe Desgagnés, Gaz Métro and the Port of Montreal have been working to develop an LNG supply system that will be operated by a subsidiary of Gaz Métro. This system will be available to all shipowners in Quebec. LNG supply systems are safe and flexible, and have proven their worth abroad. This Quebec groundbreaking initiative contributes to the development of cleaner shipping.

Currently, in Quebec, besides the N / C Damia Desgagnés, the Société des traversiers du Québec, also operates an LNG-fueled ferry, the F.-A. Gauthier which is the first ship in North America to use liquefied natural gas. This is just the beginning as both organizations have ordered other LNG-fueled vessels.

Development of LNG as a marine fuel in Europe

In Europe, the adoption of a European Directive established in 2015 limits of 0.1% marine fuel sulphur content in specific areas known as SECA (Sulfur Emission Control Area) and 0.5% for all other European waters by 2020. It also set more stringent Nox standards for new construction. This ambitious directive positions LNG as the best solution for maritime fleets that will have to comply with this directive.

An interprofessional platform for developing the use of LNG as a marine fuel

The deployment of LNG as a marine fuel is part of the current energy transition law set by the European Commission, which promotes the development of clean transport to improve air quality and protect the health of French.

The French Gas Association (AFG), with the other players in the sector, announced on Wednesday, April 19, 2017, the creation of an interprofessional platform to develop the use of LNG as a marine fuel in France. This platform brings together many players in the sector: ports, shipowners, energy suppliers, operators, equipment manufacturers and engineers.

“It thus appears as the best way to meet the ambitious emission reduction targets for the maritime sector set up by the European Union and also carried by the International Maritime Organization”, continues the AFG.

How many ships in the world?

Although LNG has had some success with shipowners, there are only 60 equipped vessels around the world. By 2020, this is expected that this number could exceed 1,000 ships. Currently, the vast majority of vessels powered by LNG in the world are located in Norway. However, coastal or inland waterway vessels using LNG as a marine fuel can be found in other European countries such as Denmark, Sweden, Finland, the Netherlands, Belgium and Germany.

What are the challenges for developing LNG in the maritime sector?

According to the Shortsea Shipping Promotion Office in France, LNG as a marine fuel needs active social, technical, financial and regulatory support from the public authorities.

The sector also needs genuine cooperation between the actors (ship owners, ports, suppliers, etc.). Moreover, the consortium SEA / LNG, launched in July 2016, aims to bring together the main players in the maritime industry to remove the barriers related to the development of LNG as marine fuel.

“It is a strong coalition combining the expertise of fleet owners, port facilities and energy experts. By working together, we want to lift constraints and accelerate the adoption of LNG as a marine fuel, “said Timo Koponen, Wärtsilä Vice-President.

 

____________________________

Sources