“Go with LNG!”

In a new paper A View from the Bridge 2023-2024, SEA-LNG says that here is a growing awareness of the fact that all the alternative fuels being discussed today share the same generic pathway: from fossil to bio-derived fuels, (or blue fuels using carbon capture and storage) and eventually to electro-fuels produced from renewable electricity. There is also a recognition that all these fuels are currently fossil, also known as grey.

SEA-LNG argues that the use of grey methanol, grey ammonia and grey hydrogen as marine fuels will generate more GHG emissions than the traditional marine fuels they are looking to replace. This means they are not viable solutions for decarbonisation even in the short term. By contrast, it asserts, grey LNG offers an immediate reduction in GHG emissions of up to 23%, after accounting for methane slip, for the two-stroke engines which are fitted to the vessels that move most of the world’s shipping tonnage.

Consequently, the methanol, ammonia and hydrogen used by shipping will need to be green, or at least a blend with large volumes of green fuels, simply to achieve parity with VLSFO (Very Low Sulphur Fuel Oil) and comply with regulations such as FuelEU Maritime.

SEA-LNG concludes: “With scaling green fuel supply a clear barrier to decarbonisation, we must make efficient use of scarce resources. With practicality in mind, we must also recognise that fuel availability is linked to the scale of supply infrastructure. Acknowledging these truths, it is clear the LNG pathway from LNG to bio-LNG to e-LNG represents the practical and realistic pathway to net zero shipping emissions.”