Page 23 - European Energy Innovation - Spring 2016 publication
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Spring 2016 European Energy Innovation                             23

                                                                     LNG IN SHIPPING

LNG CASE (Clean Available
Safe Economical) in shipping

By Katarzyna Chrulska (GIE)

ADVANTAGES OF LNG                        Secondly, the technology is proven        assume the better the infrastructure
Firstly, one unquestionable benefit of   and the LNG distribution network          and higher the competition becomes,
LNG (liquefied natural gas) as a marine  continues to expand. There are many       the lower the price will be. Of course
fuel should be outlined: its ecological  examples around the world where           the price of LNG is already much lower
character.                               LNG as a ship fuel is already applied     than the price of Marine Fuel Gas
                                         successfully. LNG is available in large   Oil (MGO) or Marine Diesel (MDO).
The complete removal of SOX and          quantities and is able to meet the fuel   Reducing pollution will lower emission
particle PM emissions and a reduction    demand of shipping.                       fees and provide marketing benefits
of NOX emissions of up to 85% by                                                   by highlighting the ecological nature
using LNG is a strong argument for its   Moreover, the production technology       of the fuel used.
use. In addition, LNG also reduces CO2   of ship engines powered by LNG
emissions by at least 20%. LNG offers    is now available. Market leaders          However, there are also some
multiple advantages to both human        (e.g. Rolls-Royce, Wärtsilä, MAN) are     challenges. LNG means extra
health and the environment.              receiving more orders for this type of    investment for ship-owners. They need
                                         installation.                             to spend money on new engines, tanks
                                                                                   and pipes. One significant problem
                                         Thirdly, we can observe a good safety     appears: the need for better insulation
                                         record for LNG operations for many        and the cylindrical shape of the tank
                                         years. LNG can be safely produced,        reduces vessel cargo capacity. A
                                         transported and distributed.              smaller tank means the need for more
                                                                                   frequent bunkering. Some studies
                                         Fourthly, LNG can be an attractive        (e.g. NLI Innovation AS) focus on the
                                         solution from both economical and         possibilities of optimizing the size of
                                         commercial points of view. At the         the tank and adjusting it to the shape
                                         moment, LNG as a ship fuel is still       of the hull. As the market grows, it
                                         being sold on a small scale to a few      will be possible to come up with
                                         customers from the shipping sector        solutions that will make tank size less
                                         and the prices are settled individually.  problematic.
                                         In a few years, we can expect more
                                         LNG suppliers, LNG bunker facilities      There are different options that
                                         and LNG powered vessels. We can           ship-owners can choose. LNG is one

                                                Reducing	emissions	using	LNG

                                           0%   Sox                                Nox CO2
                                         -20%                                                                       -20%


                                          -80%                                     -85%
                                         -120%  -100%

                                         Author: Katarzyna Chrulska (GIE) based on DNV data
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