Why LNG as ship fuel is beneficial to the planet

 

LNG (Liquefied Natural Gas) is often considered an environmentally-friendly marine fuel alternative to traditional heavy fuel oil or diesel options, and here are several reasons why LNG as ship fuel should be considered beneficial:

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LNG fuel emissions are lower compared to traditional marine fuels, producing lower levels of carbon dioxide (CO2) emissions when burned and virtually no sulfur dioxide (SO2). While methane leakage may be an issue with LNG engines and infrastructure are designed to minimize methane leaks so as to address this potential concern.

LNG Produces Fewer Air Pollutants

LNG production results in significantly fewer harmful air pollutants such as particulate matter (PM), nitrogen oxides (NOx), and sulphur oxides (SOx), leading to better air quality in port areas and shipping routes while decreasing health risks related to pollution.

Compliance with Emission Regulations

LNG fuel can help ships comply with increasingly stringent emission regulations, including those set out by the International Maritime Organization’s (IMO) Sulphur Cap regulations, which limit sulphur content in marine fuels. LNG provides a readily available solution for meeting these requirements.

Energy Efficiency LNG offers superior energy efficiency over traditional marine fuels. Today’s LNG engines have been developed to be more fuel-efficient, decreasing overall consumption per cargo transported and emissions per unit of cargo transported.

Alternative Fuel sources could offer alternatives for heavy fuel oil

LNG can serve as an effective replacement fuel for heavy fuel oil (HFO), which is commonly used in shipping industry applications. HFO emits high levels of sulphur dioxide emissions; replacing HFO with LNG could significantly lower emissions levels.

Infrastructure Development in Infrastructure Construction

LNG’s popularity as ship fuel has led to the creation of LNG bunkering infrastructure at ports, making refueling with LNG easier for vessels. Such infrastructure supports maritime sector transition toward cleaner fuels.

Renewable LNG

There has been extensive research and development conducted into producing LNG from renewable sources such as biogas or synthetic methane to further lower its carbon footprint and make it an even more eco-friendly option for ship fueling.

Notably, while LNG provides significant environmental advantages compared to traditional marine fuels, it still emits emissions. To achieve long-term sustainability and further lower environmental impact of shipping industry activities, researchers are also exploring alternative fuels and technologies like hydrogen, ammonia, and electrification as possible long-term solutions. Fuel choice will depend on infrastructure availability, vessel type and environmental goals.

As the shipping industry explores potential zero carbon fuels of the future, consensus exists among experts that hydrogen-based fuels with zero or low carbon will play a central role. According to the Hydrogen Council, three varieties of hydrogen are produced using different production processes; their yield depends on what feedstocks they utilize and the CO2 released during production:

“Green” hydrogen is produced using renewable electricity and water through electrolysis.

“Blue” hydrogen is generated from natural gas using Steam Methane Reformation (SMR) combined with carbon capture and storage (CSS).
Grey and “black” hydrogen production methods utilize fossil fuels through either gasification or steam methane reformation (SMR), respectively.2 Globally, 95% of hydrogen comes from this source while the most cost-effective zero emission hydrogen could soon emerge through electrolysis of water using renewable electricity sources such as wind or solar.
Substantiating Hydrogen Cargo and Fuel Sourcing

Opportunities and Challenges as Perceived

Flexible

Hydrogen can be integrated into the natural gas and ammonia grid at many locations, enabling production to take place near other hydrogen off-takers and varied off-take; no steady-supply commitment is needed for hydrogen off-take.

Scalable

Reducing renewable electricity costs to facilitate energy transition is imperative and will ultimately drive down green hydrogen costs, since there is no finite supply of feedstock required to make green hydrogen production possible.
Hydrogen as Shipping Fuel Hydrogen has gained wide attention as an eco-friendly fuel option in the shipping industry. Below are a few key points about hydrogen’s usage as shipping fuel:

Hydrogen as a Shipping Fuel

Hydrogen Has No Emissions
Hydrogen produces no emissions of carbon dioxide (CO2) or harmful air pollutants when used as a fuel cell or burned in an engine, leading to significant decreases in greenhouse gas emissions – something vital in combating climate change.

Hydrogen’s high energy density makes it ideal for long-range shipping where energy density is key to carrying enough fuel without adding excess weight. Furthermore, hydrogen’s higher energy density than batteries makes it more suitable for certain vessels than batteries.

Hydrogen Refuelling within 24 Hours

Refuelling hydrogen tanks at sea is relatively quick, similar to fueling vessels using conventional fuels; this feature makes hydrogen ideal for vessels operating with tight schedules such as ferries and container ships.

Hydrogen has many applications in maritime use, from internal combustion engines and gas turbines to fuel cells and fuel storage, depending on each vessel and its specific needs.

Compatibility with Renewable Hydrogen
Hydrogen can be produced through electrolysis from renewable energy sources like wind or solar power, creating a sustainable fuel option with zero emissions for shipping industry applications.

Challenges and Considerations for Global Trade Finance Institutions

Infrastructure Development: Expanding the hydrogen fueling infrastructure is necessary to make refueling at ports around the world easier and more accessible.

Cost of Hydrogen Fuel Cells: Investing in fuel cells requires a significant up-front cost, but may be balanced out over time if vessel operators can rely on predictable fuel costs due to renewable energy sources for production.

Regulatory Frameworks: Establishing a hydrogen infrastructure involving production, transportation and distribution facilities is an enormously complex endeavor. Ports and bunkering facilities may need significant investments in order to support hydrogen refuelling activities.

Safety Concerns
Hydrogen is highly flammable, with a wide flammability range. Ensuring safe handling, storage, and transport is of utmost importance when dealing with this material.

Storage and Handling
Hydrogen has a low energy density by volume, necessitating large storage tanks or high-pressure containers in which to be stored – potentially altering vessel designs or space allocation decisions.

Costs
Hydrogen production can be an energy-intensive and costly endeavor, particularly if utilizing fossil fuel-powered processes to make hydrogen. As technology develops and renewable energy capacity increases, renewable hydrogen production costs should decrease over time.

Technology Maturity

While hydrogen fuel cell technology is evolving quickly, it may not yet be as widely available or effective as alternatives such as LNG or traditional marine fuels.

Hydrogen’s viability as a shipping fuel remains uncertain at present, yet its potential to help transition towards cleaner and more eco-friendly operations has great promise. Success of hydrogen will depend on factors like technological advancements, infrastructure expansion plans, regulatory support mechanisms and economic considerations.