An industry-wide coalition named SEA\LNG has been formed to accelerate the use of liquefied natural gas as a marine fuel.
Carnival Corporation, DNV GL, Engie, ENN, GE, GTT, Lloyd’s Register, Mitsubishi Corporation, NYK Line, Port of Rotterdam, Qatargas, Shell, Tote and Wartsila are all taking part in the project.
Peter Keller, chairman of SEA\LNG and executive vice president of Tote said the cooperation between the key players in the value chain, including shipping companies, classification societies, ports, major LNG suppliers, downstream companies, infrastructure providers and OEMs (original equipment manufacturers) is set up to ensure an understanding of the environmental and performance benefits of LNG as a marine transport fuel.
“SEA\LNG will help to address market barriers and transform the use of LNG as a marine fuel into a global reality,” Keller said.
The shipping industry, despite being the world’s cleanest form of transport it is a significant contributor to global greenhouse gas, sulphur oxides and nitrogen oxides emissions.
The emissions reduction requirements, which have come into force around the world to respond to the challenge, are increasing demand for LNG as a shipping fuel, the coalition said in a statement.
However, while LNG is a competitive fuel relative to current alternatives, LNG infrastructure needs to be developed in ports around the world in order to enable LNG bunkering.
In addition to the infrastructure, there remains a price premium for LNG-fuelled vessels which can make investment decisions challenging, and the regulation is not yet globally consistent, the coalition says, adding that it aims to “address and overcome these and other challenges.”
CEO of Engie Global LNG, Philip Olivier said that LNG has the potential to take a 10 percent market share of global bunker demand by 2030.
Leo Kristios, gas technology lead, Lloyd’s Register added that until now, LNG fuelled shipping was concentrated in specialist ship sectors, short sea shipping and ferries, mainly sailing between two fixed ports. He added the coalition aims to promote the expansion of LNG as a marine fuel of choice.