Ignoring LNG, bio-LNG potential in shipping is a ‘mistake’, says coalition
The organisation, a multi-sector industry coalition created to accelerate the widespread adoption of LNG as a marine fuel, believes the industry needs to take advantage today of the confirmed reduction in greenhouse gases (GHGs) of up to 23% (well-to-wake) that come with LNG.
The World Bank’s recent report, The Role of LNG in the Transition Toward Low- and Zero-Carbon Shipping, explores potential solutions and attempts to predict the timing of future technology development. SEA-LNG believes that the transition to future fuels must not follow this ‘prescriptive’ approach, stating it is too early to decide what the real potential of various alternative fuels will be for such a hard-to-abate global industry.
SEA-LNG also believes that bio-LNG and synthetic LNG offer an ‘incremental pathway’ for the decarbonisation of the shipping industry, one that is already being implemented by a growing number of ship owners. The coalition said that by focusing on theoretical, unproven solutions, the World Bank report ‘stifles’ innovation in technologies that can also provide answers in the decades ahead.
“We strongly encourage all institutions around the globe that have a place in the policy debate to set standards and targets that drive real and immediate reductions in GHG emissions, not prescribe specific technology solutions that are untried and unproven in the real world,” said SEA-LNG.
“To suggest that investments not be made in the LNG sector is unwise, will prolong the use of higher emissions fuels, and slow down shipping’s decarbonisation.”
SEA-LNG recently said that bio-LNG provides a competitive advantage in the shipping industry, providing favourable finance for longer through reduced emissions. For every 10% of bio-LNG dropped in and blended with LNG as a marine fuel, a vessel can achieve two additional years’ compliance with the Annual Efficiency Radio curve, which is used to secure funding under the Poseidon Principles.