German Maritime Sector Pushes for LNG

Germany’s maritime sector has asked the federal government to implement specific measures in an effort to introduce liquefied natural gas as an alternative fuel for shipping.

In a joint statement, the Maritime LNG Platform, the German Shipowners’ Association (VDR), the German Shipbuilding and Ocean Industries Association (VSM), the Association of German Seaport Operators (ZDS) and the German Shipbrokers’ Association (ZVDS) propose three separate instruments to make this happen: an innovation offensive, a subsidy program for equipping ships with LNG propulsion, and uniform legal standards in ports.

“LNG has great potential for maritime shipping to achieve significant reductions in emissions of sulphur, particulate matter, and nitrogen oxides in coastal regions and in the port cities. At the same time, LNG already meets emission regulations, both those currently in force and those tabled for introduction in the future,” said Georg Ehrmann, Managing Director of the Maritime LNG Platform, a cross-sector alliance of more than 70 national and international companies, associations, and ports.

The first steps have been made in this direction with the coalition agreement between German Federal Ministry of Transport and Digital Infrastructure and the Maritime Coordinator of the Federal Government which recognized the importance of LNG for cleaner transport routes, and via the EU Directive Clean Power for Transport.

However, a question of cost remains to be solved as ships that can use both conventional fuels as well as liquefied natural gas (dual-fuel drive) cost up to 25 % more because of the special engines and the additional tanks and fuel lines required.

 

“Without a comprehensive incentive scheme from the federal government for the construction and retrofitting of LNG-powered ships, it will not be possible to dismantle the barriers to market entry,” said Ralf Nagel, Chief Executive Officer of the German Shipowners’ Association (VDR).

“Not a single LNG-powered ship has been commissioned without government subsidies throughout Europe to date. As a leading maritime nation, Germany ought to be taking on a pioneering role.”

The view was further backed by Daniel Hosseus, Senior Managing Director of the Association of German Seaport Operators (ZDS), who believes that  there is a need for a broadly based, consistent technology subsidization scheme for maritime logistics.

“For this reason the federal government ought to reinstitute the successful research programfor innovative sea port technologies (ISETEC),” he added.

Various gaps still exist in different sectors of the maritime industry ranging from construction of ships, their operation and fueling to infrastructure at ports. Another key item on the table are uniform standards for handling LNG fueled ships which are still under development across Europe and elsewhere.

“Refueling of LNG ships must become a commonplace occurrence in German ports, too. To ensure that the ships can be cleared as efficiently as has been the case to date, it must be ensured that the bunkering process can be carried out at the same time as the loading and unloading of the ships,” said Alexander Geisler, Managing Director of the German Shipbrokers‘ Association (ZVDS).

Germany needs uniform standards for handling LNG at sea ports, be it for bunkering, power generation or for transportation purposes.”