Progress requires action, and the pathway to decarbonization
requires action now. Waiting for utopian solutions does not solve existing
problems that only get worse with time. By choosing LNG as a marine fuel today,
we are moving the dial forward in terms of reducing carbon emissions in
shipping; setting a clear course towards a near zero carbon future by putting
in the groundwork for the uptake of liquid bio LNG and, in due course, liquid
synthetic methane (LSM).
This future-proofs today’s investments and ensures that
current investments in LNG capable vessels and bunkering infrastructure
continue to pay dividends by underpinning the global transition to a near zero
carbon future. The good news for the shipping industry and our future
generations is that this is a reality that has already begun and today’s assets
have a robust future.
A recent study by CE Delft shows the potential for large
scale Bio-LNG supply. And the fuel is already available in smaller quantities
at various global locations. Bio-LNG is being used today by Finnish gas
supplier Gasum, which bunkered ESL Shipping’s dry bulk carrier Viiki with 100
percent renewable Bio LNG in June 2020. Other customers are also working with
this product too. The beauty of Bio-LNG is that it can be blended with LNG, and
as a "drop in" fuel at levels of around 20 percent appears to be
competitive with Rotterdam MGO prices published in late August.
With LNG as the base fuel, there are no changes required on
board the vessel to start blending Bio-LNG, and even a small blend ratio can
deliver significant GHG reductions. The peer reviewed independent study
conducted by thinkstep (now Sphera) last year showed that this 20 percent level
of Bio-LNG as a drop-in fuel can reduce GHG by a further 13 percent. As the
same study showed up to 21 percent reduction in well-to-wake GHG emissions
achieved through switching from HFO to LNG, a 34 percent reduction is already
in reach.
This ability to offer a de-risked,
"future-proofed" pathway is why LNG dual-fuel engines have a vital
role in accelerating decarbonization of the shipping sector. Not only do they
enable GHG reductions to be achieved now but they offer a realistic, lower investment,
near zero carbon pathway. This pathway has been proven with little or no
modifications through the use of Bio-LNG and, in the future, LSM as drop-in
fuels. These fuels can be transported, stored and bunkered in ports utilizing
existing LNG infrastructure.
Further positive news for shipping is that dual-fuel
internal combustion engine technology advancement means that ship owners have
flexibility and optionality in future fuel choice. Technology advancements have
also dramatically reduced methane slip, as has recently been reported. These
advances, which need to be integrated into the industry databases used to
calculate emissions reductions, will continue to mitigate slip. Moreover, new
generation LNG dual fuel engines could use a small percentage of other
developing alternative fuels with minimal, if any, retrofitting required,
guaranteeing the value of the vessel asset over its full lifespan.
Bio-LNG has additional advantages when it is produced from
domestic and agricultural waste. With an approach grounded in the circular
economy, waste can be reprocessed, contributing to the abatement of waste
management - another global environmental challenge. The process can capture
methane that would otherwise have been emitted into the atmosphere, resulting
in an energy source that is not merely a zero carbon fuel, but has the
potential to be carbon negative.
Beyond Bio-LNG, future growth in renewable electricity is
likely to make LSM a viable alternative to other synthetic fuels and one which
can use the existing global LNG infrastructure. Later this year, shipowner
Wessels Marine will be piloting the use of LSM in its LNG-fuelled container
feeder Wes Amelie. The LSM will be supplied from a new liquefaction plant being
built at car manufacturer Audi’s power-to-gas factory in Wertle in north
Germany.
The evolution to cleaner maritime fuels is already well
under way as consumers across the world have a greater awareness of
environmental issues and the impact on world health, as well as GHG emissions.
Many companies, across multiple sectors, are already firmly committed to
pursuing the LNG pathway to decarbonization. They recognize that – when it
comes to progress - if we stand still, we only fall back.
Carbon reduction, as well as local emissions reduction to
improve human health, should and can start now. By waiting for an ultimate, and
likely costly, solution we simply make the problem worse. Inaction is not a
plan. Taking decisive action now and making investment decisions in favor of
LNG fuel technology and infrastructure will accelerate progress.