DNV Recommends LNG Fuel Shipping for North America

DNV’s new report, Greener shipping in North America, proposes that LNG  is the most efficicient and economical way to meet air emissions requirements in the US and Canada that take effect in August 2012. Environmental Control Areas (ECA) will gradually be enforced along the North American coastlines. They will have full force in 2015 and 2016, leaving shipowners a limited number of options for modifications to their ships if they want to continue trade in North America.

Says Kenneth Vareide, “A LNG fuelled propulsion plant may add about $3.6 million to the cost of a typical domestic cargoship, however, over the operating life of the vessel, at today’s gas rates, LNG fuel would save more than $4 million over CO2 scrubbers and $12 million for low sulphur fuel.”

Specifically, the use of LNG fuel for a ship would reduce nitrous oxide (NOx) emissions by 85-90%, sulphur dioxide (SO2) and particulate matter by almost 100%, and it would result in 15-20% less greenhouse gas emissions.

Best and most cost-efficient

DNV’s report is the first study of US and Canadian domestic shipping and recommendations to meet new environmental legislation for North America. The report says that implementing LNG fuel on a significant portion of the fleet is the best and most cost-efficient solution for reducing environmental emissions in North America.

The report covers:

* North American shipping statistics

* New environmental legislation for ship emissions in North America

* LNG’s economic performance

* LNG’s environmental performance

* LNG technology

* LNG safety

* LNG availability

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Source: DNV, February 22, 2011;