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LNG only 'viable option' today to tackle shipping's air quality issues

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Peter Keller, chairman SEALNG
An improvement in the shipping market resulting a revival of newbuilding orders would see a dramatic increase in the adoption of LNG propulsion, according to SEA\LNG chairman Peter Keller.

While the uptake of LNG as marine fuel has not matched forecasts of a few years ago, Keller, who is both chairman of industry coalition SEA\LNG and executive vice president of TOTE owner of the world’s first LNG-powered containerships, believes it has a strong future a fuel for shipping helping to meet global demands for cleaner air.

“It really is the only thing that solves the air quality issues that the industry has been working on for decades by basically eliminating SOx, eliminating PM (particulate matter), and dramatically reducing NOx. The air quality issues continue to be very important, we see that lingering haze or smog over all of our cities and that’s not good,” he told Seatrade Maritime News in a recent interview.

The IMO’s 0.5% global sulphur cap for marine fuel from 1 January 2020 means that shipowners will either have to use more expensive marine gas oil or hybrid fuels, install scrubbers to continue using high sulphur heavy fuel oil, or switch to alternative fuels such as LNG.

FREE DOWNLOAD - 2020 Sulphur Cap: Is the industry ready for the long-run?

“It’s pretty clear to me and others that LNG is safe, it’s readily available we have tremendous amount supply around the world, and it is cost effective especially when viewed against compliant fuel,” he said.

While technologies such as scrubbers make sense for older vessel retrofits Keller sees LNG as a strong choice for newbuildings. Keller noted that the downturn in shipping markets in recent years had resulted a lacklustre shipbuilding environment. But once this picks up, combined with owners looking at options to comply with the sulphur cap he said: “I think you will see the percentage of new ships ordered with LNG as propulsion capability start to increase dramatically.”

Although handling the SOx issue very effectively the fact that LNG is still a fossil fuel means it will not meet the IMO’s target for a 50% reduction in CO2 emissions from shipping by 2050. However, it will reduce CO2 emissions from a ship by 20 – 25%, a significant step towards that target.

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“When we look at the other side of the problem – the companion problems of decarbonisation – it makes a contribution, fairly significant contribution. While it’s not the answer it at least moves the needle and keeps us moving the right direction,” Keller said.

He sees LNG being combined with other technologies such as using bio-fuels, more efficient hull design, and some yet to be invented to meet the 50% CO2 reduction target. “I think as we look at air quality issues, and as we look at shipping start to contribute under carbon reduction initiatives, it’s the only viable solution right now. At the end of day we could wait forever for alternatives.”

Read more: Revolution needed in marine propulsion to meet IMO's 50% greenhouse gas reduction target

Keller speaks from experience when it comes to LNG as marine fuel with the working for TOTE, which has operated two LNG-powered containerships between Jacksonsville in the US and Puerto Rico for three-years now. “They operate extremely well, they operate cleanly, and they provide all the environmental benefits we had anticipated to the people we serve. The important lesson is the fact it works,” he stated.