Page 48 - European Energy Innovation - Spring 2015 publication
P. 48
Spring 2015 European Energy Innovation


4.2 Economic the Baltic, North Sea and in terms of their share. MAN
Apart from the environmental Mediterranean, an estimated and Wärtsila main engine
benefits that a switch from heavy market potential of € 9-12 manufacturers in Europe.
fuel oil will introduce there are billion would be created. This
a number of strong economic potential only applies to new • However especially Korean
benefits to be realised, amongst ships, not to retrofit. companies have started
which are: entering the LNG market with
4.3 Shipbuilding Industry & Hyundai and Daewoo being
• Despite current bunker Marine Equipment Suppliers the biggest competitors.
prices being below 400 USD • The adoption of LNG fuelled
per tonne, they can easily • Several marine equipment
rebound above 600 USD per vessels in Europe will adapt suppliers are active in ship
tonne. Ships are long-term according to the IMO & EU technologies and in land
investments compared to oil. policy measures taken. If technologies such as the
the policy measures taken road and/or rail industry
• The LNG market will mature are appropriate, 20-30 new which allows for a transfer of
further and prices are LNG fuelled vessels could be knowledge and technology to
expected to decrease once expected per year. the shipbuilding domain from
Australia and US are in full another economic sector, or
production. • Today, more than ever, vice versa.
Europe’s shipbuilding industry
• Wider spread use of LNG prospects rely on its ability Both specific LNG and dual fuel
would help decouple shipping to maintain its competitive engines reduce NOx emissions. A
costs in those areas where advantage and to further pure LNG four stroke engine can
oil prices are rising and move into new high value – reduce NOx emissions up to 80%.
could be expected to reduce high complexity activities. (Futureship (2011).
operational costs -> increasing
perspectives for long-term • Europe has a 77% market • European engine makers are
sustainability of EU shipping share in building passenger leading in the LNG market
operations. vessels (including both cruise in terms of their share. MAN
ships as well as ferries) and a and Wärtsila main engine
• RDI in the LNG technology will 17% share in the construction manufacturers in Europe.
also influence the price. of non-cargo vessels. These
segments make up a relatively • However especially Korean
• The North European LNG small share of the world order companies have started
infrastructure project; final book (in CGT). However, entering the LNG market with
report May 2012 concludes in value they represent a Hyundai and Daewoo being
that LNG modifications much higher share due to the biggest competitors.
(retrofits) and new builds have their relatively sophisticated
a payback time of 2 – 4 years. characteristics. LNG could also be used for
compliance, as it contains hardly
• Norway, supported by the Several marine equipment any sulphur, and as prices tend
state-driven introduction of suppliers are active in ship to be relatively lower than low
a national LNG bunkering technologies and in land sulphur diesel oil.
network, has set a positive technologies such as the road
example for the success of and/or rail industry which allows • LNG as a fuel is a specific
LNG. Total market potential for a transfer of knowledge and possibility because of its
following from the US NOx technology to the shipbuilding low sulphur content and its
ECA is estimated at € 7-9 domain from another economic attractive price relative to
billion for the period until sector, or vice versa. other low sulphur fuels.
2030. If a European NOx
ECA were to be in place in • European engine makers are • For both LNG and
leading in the LNG market
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