LNG to fuel cleaner marine transport, IGU report says

The International Gas Union (IGU) latest report highlighted the detrimental impact of marine transport on air quality levels, emphasizing the positive role LNG can play in combatting these impacts as an alternative and cleaner fuel for shipping.

Urban air pollution has become a top priority for local, national, and international governments in both developed and developing countries.

Marine transportation is an often overlooked contributor to negative air quality levels – with one large container ship, powered by 3 percent sulphur bunker fuel, emitting the same amount of sulphur oxide gasses, as 50 million diesel-burning cars, IGU’s report shows.

In the world’s top 100 ports, roughly 230 million people are exposed directly to the harmful emissions produced by shipping.

The use of LNG in marine transport can deliver significant environmental, economic and social benefits. These include reductions in emissions of harmful pollutants, including up to 90 percent reductions in sulfur oxide (SOx) emissions, 29 percent reductions in carbon dioxide (CO₂) emissions, and 85 percent reductions in PM levels.

In addition, a switch to LNG fuel can generate substantial monetary savings for operators through fuel costs, as well as benefiting local infrastructure through investments and jobs.

The report notes that emissions also create significant economic costs, with emissions of pollutants produced by shipping in the world’s 50 largest ports costing authorities €12 billion (Approx: US$12.9 billion) annually.

In Spain alone, the country’s 13 key ports cost an estimated €206 million. In Bergen, Norway, the emissions of ships at berth in the port are estimated to cost the city between €10 – 22 million.

IGU noted that strong policy responses are needed to make this switch a reality, calling for the increasing regulation of emissions from marine transport, identifying and eliminating gaps in existing regulatory frameworks, facilitating better access to financing for the switch to LNG and funding LNG technology development and first-mover deployments.

The recommendations aim to tackle the existing barriers to the more rapid deployment of LNG-fueled ships. The report identifies a number of barriers such as a confusing regulatory landscape, gaps in emissions controls, regional inconsistencies, lack of clarity in future policy direction as well as commercial barriers, such as access to capital and cost uncertainties.

Commenting on the report, David Carroll, president of the IGU said, “the case for using LNG fuel for shipping is clear. It will provide significant improvement to our quality of life by dramatically reducing air pollution. It will also support climate change goals by reducing greenhouse gasses. We need effective policy change to encourage a switch to LNG.”