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At the start of 2022 there were 229 LNG-fuelled ships in operation, excluding the 600 strong LNG carrier fleet, the majority of which are LNG-fuelled, and over 400 ships on order

Since 2010 the number of vessels fuelled by LNG has grown consistently by between 20% and 40% per annum and in 2021 30% of newbuildings by gross tonnage were capable of being fuelled by LNG.

By choosing an LNG dual-fuel (DF) engine technologies shipowners have multiple fuel options available to them on delivery of the vessel and in future. LNG DF engines provide shipowners with options to choose the most profitable operating profile. By opting for LNG, shipowners can benefit today from LNG as a fossil fuel with up to 23% lower GHG on a well-to-wake basis. However, LNG DF engines also provide future options to blend bioLNG or renewable synthetic LNG to lower they GHG emissions further towards net-zero. Additionally, LNG DF engines can be combined with carbon capture and storage technologies, should this option prove more profitable operationally pathway to reach net-zero. LNG has been used as fuel for more than 50 years and has an established operational risk profile which does not exist for unproven alternative marine fuels.

By investing in LNG-fuelled vessels now, ship owners can realise immediate GHG benefits – up to 23% on a Well-to-Wake basis, including the impact of methane emissions.  This reduction in GHG emissions by using LNG will enable LNG fuelled vessels to meet the EU’s carbon intensity targets for 2030 being proposed under FuelEU maritime.

Longer term LNG offers a decarbonisation pathway for shipping to become carbon neutral using bioLNG produced from biomass and renewable synthetic LNG produced from renewable electricity.

Further information can be found here

As the most environmentally friendly marine fuel widely available, LNG fuelled vessels provide improved portfolio performance using the IMO carbon intensity measures chosen by financial institutions who have signed up the Poseidon Principles. Hence, shipowners choosing LNG engines are more likely to be offered preferential financing from financial institutions who are members of the Poseidon Principles. By opting to mix bioLNG or renewable synthetic LNG in future to incrementally reduce a vessel’s operating emissions, it is likely that preferential financing can be sustained during the lifetime of the vessel.

As the most environmentally friendly marine fuel widely available, LNG fuelled vessels comply with the principles set out by members of Sea Cargo Charter. LNG engines reduce the Carbon Intensity Indicator (CII) rating of a vessel. Hence, shipowners choosing LNG engines are more likely to be able to compete for chartering opportunities from Charterers who are members of Sea Cargo Charter. By opting to mix bioLNG or renewable synthetic LNG in future to continually reduce a vessel’s operating emissions, and improved its CII rating, it is likely that preferential chartering opportunities can be sustained during the lifetime of the vessel.

Under IMO legislation, from 2023 all vessels will have to comply with CII rules. For a vessel forced to reduce speed to comply with these rules, the reduction in earning potential on a given trade route is simple maths, in terms of the amount of cargo that can be delivered over a set time period. However, there may be wider implications in terms of the global envelope of operations for a specific vessel and the fact charters may only accept vessels with higher CII ratings for certain trades meaning vessels with lower CII ratings risk being forced to compete in less profitable trading routes.

LNG far out-performs conventional marine fuels on a local emissions basis which is particularly important in regard to human health issues in ports and coastal areas.  It emits virtually no sulphur oxides (SOx) and particulate matter (PM). Compared to existing heavy marine fuel oils, LNG can, depending on the technology used, emit up to 95% fewer nitrogen oxide (NOx) emissions. As such it is compliant with both SOx and NOx emissions limits in coastal Emission Control Areas (ECAs) and the IMO’s global sulphur cap.  Furthermore, its unparalleled emissions performance effectively insulates shipping companies from the impact of future, more demanding, local emissions regulations.

Further information can be found here

By investing in LNG-fuelled vessels now, ship owners can realise immediate GHG benefits – up to 30% on a Tank-to-Wake basis, including the impact of methane emissions. In combination with efficiency measures being developed for new ships in response to the IMO’s Carbon Intensity Indicator (CII), Energy Efficiency Design Index (EEDI) and Annual Efficiency Ratio (AER), LNG provides a way to meet the IMO’s decarbonisation target of a 40% decrease in GHG emissions by 2030 for international shipping.

Longer term LNG offers a decarbonisation pathway for shipping to become carbon neutral using bioLNG produced from sustainable biomass and renewable synthetic LNG produced from renewable electricity from sources such as solar and wind

Further information can be found here

Yes, LNG bunkering infrastructure can be used to supply zero-carbon fuels in the form of bioLNG or renewable rynthetic LNG, with little or no modification, so enabling the transition to a decarbonised shipping industry. In addition, as bioLNG and synthetic LNG have the same chemical composition as fossil LNG, any percentage amount of bio and synthetic can be blended with fossil LNG to reduce GHG emissions without affecting vessel engine performance or operating procedures.

LNG is the only alternative to traditional marine fuel oils which is commercially viable for deep-sea shipping. Independent modelling of the investment case for LNG-fuelled vessels across a variety of different vessel types and trade routes using publicly available data on CAPEX shows that LNG provides a compelling business case for ship owners when compared to conventional marine fuels.

Analysis based on long term scenarios shows that LNG as a marine fuel delivers the best return on investment on a net present value (NPV) basis over a conservative 10-year horizon compared with low sulphur fuel oil and HSFO with EGCS, with paybacks varying from less than one year to five years.

Further details can be found in our investment case study reports here

Analysis based on long term scenarios clearly shows that LNG as a marine fuel delivers the best return on investment on a net present value (NPV) basis over a conservative 10-year horizon compared with low sulphur fuel oil, with paybacks varying from less than one year to five years.

Further information can be found here

Choosing LNG now as the most environmentally friendly practical option for deep-sea shipping may provide multiple benefits:

• corporate brand value may be enhanced through choosing the best feasible environmental option,
• corporate share price may be enhanced through greater ESG investment scores,
• vessel port fees may be reduced for LNG fuelled vessels,
• capital financial costs may be supported and/or reduced rates of interest obtained through compliance with the Poseidon Principles, and
• more flexible vessel trading options and associated charter premia through meeting the Sea Cargo Charter Principles.

LNG as a marine fuel offers the best operational performance today in terms of air quality emissions and meeting existing sulphur and nitrogen oxide legislation. It is operationally proven, commercially viable, available and scalable now, and the only fuel marine that can enable the shipping industry to remain competitive while phasing-out emissions this century. Current LNG propulsions systems offer investors exceptional future optionality to meet expected GHG emissions.

LNG reduces GHG emissions by up to 30% on a Tank-to-Wake basis in comparison with traditional heavy marine fuel oils. In combination with efficiency measures being developed for new ships in response to the IMO’s Energy Efficiency Design Index (EEDI), LNG provides a way to meet the IMO’s decarbonisation target of a 40% decrease by 2030 for international shipping.

GHG emissions from current dual-fuel LNG propulsion systems can be reduced further using drop-in fuels, such as bioLNG, also referred to as liquefied biomethane, and renewable synthetic LNG.

Additionally, some engine manufacturers are already offering dual-fuel LNG engines that can be converted to use other alternative marine fuels.

Fuel is traditionally purchased on a dollar per ton basis, however, the transaction is really about buying energy. LNG offers a lower energy cost per ton, whenever priced against Heavy Fuel Oil (HFO) by nearly 24% because it contains more energy for a given mass: LNG as a marine fuel provides 50GJ of energy per ton, whereas HFO only provides 40.5GJ/ton. 2,000 tons of LNG provides the same amount of energy as 2,469 tonnes HFO.

LNG is a clear winner in terms of delivering more energy per litre when compared with other alternative marine fuels, having roughly twice the density of ammonia and nearly four times that of hydrogen.

Estimated sustainable global supplies of bioLNG significantly exceed the forecast energy demand from shipping by 2050, and bioLNG is likely to be commercially competitive relative to other low- and zero-carbon fuels. The independent analysis from CE Delft excludes the potential of aquatic biomass which offers an energy resource 30-60 times greater than global shipping demand. It is supported by a recent report by the IEA on the outlook for biogas and biomethane which concludes that feedstocks available for sustainable production of biogas and biomethane are huge, but only a fraction of this potential is used today.

LNG infrastructure is growing fast and is being built around an existing bulk LNG infrastructure closely aligned with major shipping trades. LNG bunker vessel numbers have increased substantially in just a few years from none to 33 operational and another 42 on order. With over 200 ships operating today on LNG, and the order book having an additional 400 vessels, we expect that growth to continue.

Initial services best suited to LNG were short-sea – those involving coastal and short duration voyages; and liner – deep-sea passages following regular routes. As infrastructure has expanded and the number of ports supplying LNG as a marine fuel has grown, tramp and spot market services – where a vessel’s voyage may change with each cargo carried, are becoming feasible.

SEA-LNG began with just one port member and now we have nine with more interested in supporting our work.   Ports play a key role for shipping and their growing interest in LNG to serve their customers is an obvious signal that the demand for LNG as a marine fuel is growing.

As of 2022, it can now be delivered to vessels in some 141 ports, including most of the main bunkering ports, with a further 30 ports in the process of facilitating LNG bunkering investments and operations by the end of this year.  TotalEnergies is forecasting that LNG bunkering will represent 10% of global bunkering by the end of the decade.

LNG bunker fuel is available globally in key ports.  Our Bunker Navigator map provides a handy guide to them

LNG Bunker fuel can be delivered to your vessel in multiple ways e.g. truck-to-ship, pipeline-to-ship and ship-to-ship transfer. LNG bunker fuel is increasingly available at sea and in harbour with ship-to-ship transfer. There has been a dramatic scaling up of ship-to-ship bunkering. In early 2019 there were just six LNG bunkering vessels around the world. As of January 2022, there are 33 in operation with a further 42 on order and/or undergoing commissioning, the majority are due to come into service within the next two years. Further details on where LNG bunker vessels operate can be found here

Supply chain methane emissions account for about 6% of total WtW GHG emissions. These emissions could be reduced on average by 15% by 2025 and 35% by 2030, based on actual initiatives and communicated targets.

This is consistent with the ambitions targeted by the Global Methane Pledge, launched at COP26 in November 2021 to catalyse action to reduce methane emissions. Led by the United States and the European Union, the Pledge now has 111 country participants who together are responsible for 45% of global human-caused methane emissions. By joining the Pledge, countries commit to work together in order to collectively reduce methane emissions by at least 30% below 2020 levels by 2030.

By choosing certain technologies, such as high-pressure (HP) dual-fuel engines, methane slip can be virtually eliminated today.  In 2021, around 75% of LNG engines ordered were HP engines.  In addition, the 2021 study by Sphera provides independent confirmation that, by 2030, methane slip will have been virtually eliminated as technological improvements continue.

For those engine technologies that do experience methane slip, it can be reduced in two different ways:

• Optimization of combustion, to ensure methane is better burned in the combustion chamber and does not escape with exhaust gases.  Such measures typically also result in improved engine efficiency, as less fuel is wasted.  Both 2-stroke and 4-stroke engines can benefit from such measures.
• Use of oxidation catalysts for reducing methane from exhaust emissions. Such catalysts are currently being tested, and according to early reports they could reduce methane by up to 70% from 4-stroke engines.

Greenhouse gas (GHG) emissions from using LNG as a marine fuel should be calculated by considering carbon dioxide, methane and nitrous oxide emissions.  Methane is the main component of LNG, and small amounts of it can escape unburned from engines (also known as methane slip).  It can also be released in small quantities through the natural gas supply chain – where it is known as fugitive methane emissions.  Methane is a potent GHG and there is often a debate on whether the 20- or 100-year Global Warming Potential (GWP) factor should be used.

Consistency and clarity on metrics is key when addressing climate challenges, so the same GWP factor needs to be used for shipping (responsible for approximately 0.05% of global anthropogenic methane emissions) as for other sectors such as agriculture (39.6%), energy (37.9%) and waste (20.5%).   SEA-LNG follows the 100-year GWP (GWP100) adopted by the United Nations Framework Convention on Climate Change (UNFCCC) which is widely accepted as the default metric.  The reason for this is that climate change is a long-term problem, and the warming effect over a hundred years is the most relevant measure.

In contrast to other alternative fuels such as renewable hydrogen and ammonia, LNG is operationally proven, commercially viable, available and scalable now. LNG is the only marine fuel that can enable the shipping industry to remain competitive while phasing-out emissions now.

Neither renewable hydrogen nor renewable ammonia are available for the global shipping fleet . They are far more expensive, in terms of cost per unit of energy output, so not commercially viable today or for the foreseeable future.

To develop hydrogen and ammonia as marine fuels, UMAS / Energy Transition Commission estimated that an additional $1-1.4 trillion investment is needed to reduce the shipping industry’s GHG emissions by 50% by 2050. According to the study, only 13% of this investment is related to ships themselves; 87% would be needed to develop the land-based infrastructure and production facilities for low carbon fuels. In contrast, all existing infrastructure for LNG can support the supply of net-zero carbon bioLNG or renewable synthetic LNG with very little modification.

There is a whole range of safety, environmental and technical issues to be addressed before fuels such as hydrogen or ammonia can be used in the marine environment with implications for both cost and timing.

Further analysis of hydrogen, ammonia and other alternative marine fuels can be found here

Yes.  LNG far out-performs conventional marine fuels on a local emissions basis which is particularly important in regard to human health issues in ports and coastal areas.  It emits virtually no sulphur oxides (SOx) and particulate matter (PM).  Compared to existing heavy marine fuel oils, LNG can, depending on the technology used, emit up to 95% fewer nitrogen oxide (NOx) emissions.   As such it is compliant with both SOx and NOx emissions limits in coastal Emission Control Areas (ECAs) and the IMO’s global sulphur cap.  Furthermore, its unparalleled emissions performance effectively insulates shipping companies from the impact of future, more demanding, local emissions regulations.  The use of LNG as a marine fuel, depending on engine technology, offers greenhouse gas (GHG) emissions reductions of up to 23% on a Well-to-Wake basis and 30%, Tank-to-Wake, including the impact of methane emissions when compared to conventional marine fuels.  Additionally, LNG poses no pollution risk to ocean environments through fuel spills in contrast to traditional marine fuels.

LNG as marine fuel has a proven safety record with well-established standards, guidelines and operating protocols.

As a clean fuel, the engine rooms and exhaust emission from LNG fuelled vessels are much cleaner than traditional HFO and VLSFO fuelled vessels.  Working in cleaner environments has both immediate and long-term health benefits for those serving onboard vessels fuelled by LNG.  For companies using LNG, this benefit is already being noted when recruiting seafarers to serve onboard.

The reduction in air pollution from LNG fuelled vessel exhausts is of particular benefit to those living near ports.  For public health reasons, the level of local emissions and risk to public health from marine accidents must be considered alongside GHG emissions.

Additionally, as a cryogenic fuel, should there be any leakage of LNG during bunkering operations, or in the case of a marine accident, LNG will evaporate posing no environmental threat to any marine environment, whether open ocean or inland waters.

LNG as marine fuel has a proven safety record with well-established standards, guidelines and operating protocols.

The bulk LNG transportation industry, where LNG is commonly used as a fuel for the transporting vessel, has an excellent safety record. Over the past 50 years, more than 100,000 commercial LNG cargoes have been safely delivered and global LNG shipments have covered more than 130 million miles – about 5,000 times around the earth – without any major safety incidents in port or at sea. This is testament to the LNG industry’s rigorous design guidelines for both ships and shore facilities, as well as high standards of training and operational procedures.

There are well-established and internationally agreed standards, guidelines and operating protocols for LNG as a marine fuel.

For further information, please check out the information and documentation published by SGMF and SIGTTO.