Germany extends support for LNG conversions
The German government has extended the period in which it provides grants for equipping and converting seagoing vessels to use LNG as a marine fuel.
The German Federal Ministry of Transport and Digital Infrastructure (BMVI) sad the deadline has been extended to December 31, 2021.
The move comes as a response to the effects of the global COVID 19 pandemic. The ministry said that due to the circumstances many projects could not be implemented during the year.
The ministry noted that grants provide subsidies of 40 per cent of LNG retrofit price tag for ocean-going vessels and up to 60 per cent depending on the size of the company.
It is further noted that the use of LNG as a bridge technology allows increased use of bio and synthetic methane in the future, enabling climate-neutral shipping.
As a result of the first two calls for funding, a wide variety of projects have already benefited from the subsidies from the BMVI for investments.
The BMVI is investing almost €30 million ($36.75 million) in a total of 12 equipment and retrofitting projects.
Most recently, through the second call for funding, the LNG equipment of four new chemical tankers of the Hamburg shipping company John T. Essberger with more than €6.3 million and the LNG conversion of two cement carriers of the shipping company Brise / Baltrader with more than €4.8 million are supported.