DNV GL, Keppel to Jointly Promote LNG as Ship Fuel

Classification society DNV GL and a subsidiary of Keppel Offshore & Marine (Keppel O&M) have signed a framework agreement to boost the uptake of liquefied natural gas (LNG) as ship fuel.

The deal, signed with Keppel’s subsidiary Keppel Marine and Deepwater Technology (KMDTech), covers potential newbuilding projects including LNG bunker vessels, small-scale LNG carriers and floating storage regasification units (FSRUs), as well as LNG related assets employing battery and hybrid technologies.

As the first delivery in the agreement, DNV GL will issue Approval in Principle (AiP) certificates for two LNG bunker vessel designs from KMDTech. The designs are for two 7,500 cbm small-scale LNG carriers with bunkering capabilities, with one of them featuring hybrid battery propulsion.

They are equipped with engines that can run on both diesel and LNG, and will also have a class notation for bunkering which enables the provision of LNG bunkering services if required.

In light of the upcoming IMO 2020 SOx regulations, LNG as marine fuel is viewed as one of the most viable options for deep-sea shipping. DNV GL’s Maritime Forecast to 2050, part of the research behind the DNV GL Energy Transition Outlook 2018, projects that more than 10 per cent of the world’s shipping fleet will be powered by LNG by 2030, compared to less than 0.3 per cent in 2019. The report anticipates that LNG powered vessels will make up 23 per cent of the world’s fleet by 2050.

In order to support this growth, an upgrade of LNG bunkering infrastructure is needed.

“One of the objectives of our collaboration with Keppel is to facilitate the increased supply of LNG bunkering infrastructure by being future ready through design approvals of different sizes of LNG bunker vessels, and LNG-related assets such as small-scale LNG carriers and FSRU,” said Johan Peter Tutturen, Business Director Gas Carriers in DNV GL.

The collaboration is also intended to further advance asset design by optimizing machinery and systems configuration to increase fuel efficiency, using advance simulation tools.