Page 23 - European Energy Innovation - Spring 2016 publication

Spring 2016 European Energy Innovation
LNG CASE (Clean Available
Safe Economical) in shipping
By Katarzyna Chrulska (GIE)
ADVANTAGES OF LNG
Firstly, one unquestionable benefit of
LNG (liquefied natural gas) as a marine continues to expand. There are many
fuel should be outlined: its ecological examples around the world where
character.
The complete removal of SOX and
particle PM emissions and a reduction
of NOX emissions of up to 85% by
using LNG is a strong argument for its
use. In addition, LNG also reduces CO2
emissions by at least 20%. LNG offers
multiple advantages to both human
health and the environment.
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LNG IN SHIPPING
Secondly, the technology is proven
and the LNG distribution network
LNG as a ship fuel is already applied
successfully. LNG is available in large
quantities and is able to meet the fuel
demand of shipping.
Moreover, the production technology
of ship engines powered by LNG
is now available. Market leaders
(e.g. Rolls-Royce, Wärtsilä, MAN) are
receiving more orders for this type of
installation.
Thirdly, we can observe a good safety
record for LNG operations for many
years. LNG can be safely produced,
transported and distributed.
Fourthly, LNG can be an attractive
solution from both economical and
commercial points of view. At the
moment, LNG as a ship fuel is still
being sold on a small scale to a few
customers from the shipping sector
and the prices are settled individually. problematic.
In a few years, we can expect more
LNG suppliers, LNG bunker facilities
and LNG powered vessels. We can
Reducing emissions using
0% Sox
-20%
-40%
-60%
-80%
-100%
-120% -100%
Author: Katarzyna Chrulska (GIE) based on DNV data
assume the better the infrastructure
and higher the competition becomes,
the lower the price will be. Of course
the price of LNG is already much lower
than the price of Marine Fuel Gas
Oil (MGO) or Marine Diesel (MDO).
Reducing pollution will lower emission
fees and provide marketing benefits
by highlighting the ecological nature
of the fuel used.
However, there are also some
challenges. LNG means extra
investment for ship-owners. They need
to spend money on new engines, tanks
and pipes. One significant problem
appears: the need for better insulation
and the cylindrical shape of the tank
reduces vessel cargo capacity. A
smaller tank means the need for more
frequent bunkering. Some studies
(e.g. NLI Innovation AS) focus on the
possibilities of optimizing the size of
the tank and adjusting it to the shape
of the hull. As the market grows, it
will be possible to come up with
solutions that will make tank size less
There are different options that
ship-owners can choose. LNG is one
LNG
Nox CO2
-20%
-85%