LNG for Transportation Gains Speed, USA

The world’s largest energy consumers are making progress towards a clean energy future, with new policies and projects to drive greater adoption of natural gas – specifically liquefied natural gas (LNG) – for the transportation sector.

Upward pressures on oil prices are among the factors which have prompted many governments to advocate for LNG as a fuel. Governments have a vested interest in diversifying the fuel mix as this reduces a country’s dependence on foreign imports, thereby increasing national energy security.

America’s Natural Gas Highway recently got a boost as key stakeholders, Clean Energy Fuels and GE  signed a collaboration to provide fuel-efficient technologies and microfinancing for the ‘Coast-to-Coast and Border-to-Border’ infrastructure, expected to feature approximately 70 LNG stations by the end of 2012.

Just a few weeks before, China – the world’s second largest fuel consumer – also unveiled a natural gas policy advocating LNG for the first time, targeting the transportation sector i.e. buses, taxis, trucks and ships. The government policy document also set out China’s aims to reduce its diesel dependency, the main fuel currently used in the country’s transportation sector.

Meanwhile, a similar initiative in Europe – the Blue Corridor – offers several LNG refuelling possibilities for heavy vehicles, giving them full guarantee of fuel availability along the Mediterranean coast into central Europe.

“The transportation sector is the single largest contributor to oil demand in many countries across the world, consuming approximately one-fifth of global primary energy. Natural gas is flexible and can be used to fuel a wide range of modes of transportation, from light-duty vehicles to heavy-duty trucks and ships,” said Jay Copan, Executive Director, LNG 17, the world’s largest LNG event in 2013. The International Gas Union’s “Global Vision for Gas – Pathways Towards a Sustainable Energy Future” cites that road transport is the second-largest source of global emissions after power generation, slated to account for 21 percent of emissions by 2050. The Pathways report also cites that if all heavy industry vehicles and shipping switched over to LNG, emissions from these vehicles would be reduced by 20 percent.

“One of the biggest drivers for the uptake of LNG in transportation is the cost-effective and fuelefficient technologies now becoming commercially available. With truck fleets now having the option to reduce fuel costs by more than 25 percent, and lower emissions, with LNG we believe the momentum will only drive us forward,” said Copan.

Initial studies show that the use of LNG instead of diesel engines can reduce a ship’s CO2 emissions by 25 percent and cut its sulphur emissions by as much as 80 percent. Classification society Lloyd’s Register believes that LNG as fuel could account for up to 8 percent of total bunker fuel demand by 2025. Five ports are already developing LNG bunkering infrastructure, including Gothenburg and Nynashamn in Sweden, Zeebrugge in Belgium, Rotterdam in the Netherlands and Singapore.

“A millennium ago, marine moved from oar to sail, two centuries ago sail to steam, a century ago steam to diesel, and now it’s a new era for gas,” John Hatley PE, Americas Vice President Ship Power, Wartsila North America, Inc and a confirmed speaker at LNG 17.

At LNG 17, there will be a special Spotlight Session on Potential Growth Markets for LNG in Transportation which will expand on:

• LNG for long-haul trucking – success stories in this market
• LNG for marine transportation – what are global implications?
• Small scale liquefaction – what are the opportunities?

LNG 17 will also feature a conference session on LNG as a Transportation Fuel, at which industry experts will speak on the following topics:

• LNG for Transport, James Burns, Shell Exploration & Production BV
• GDF Suez Promote LNG as a Fuel for Heavy Trucks by Partnership with Truck Manufacturers, Quentin Ragetly, GNVERT GDF Suez
• Technology and Approaches: LNG as a Fuel for Demanding High Horsepower Engine Applications, Paul Blomerus, Westport Innovations
• LNG – The Next Bunker Fuel?, Frederick Adamchak, Poten & Partners Inc.
• LNG as Marine Fuel: Challenges to be Overcome, Pablo Semolinos, Total Gas & Power
• International Guidelines for Bunkering LNG as a Marine Fuel, Erik Skramstad, DNV

The LNG 17 conference and exhibition will also feature actual technology displays relating to LNG in transport.

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LNG World News Staff, January 16, 2013; Image: LNG 17