6 reasons for LNG entering the marine fuel marketPresentation Transcript
6 reasons for LNG entering the marine fuel market
2 The fleet of LNG fuelled ships is growing – Why? Ships in operation Confirmed orderbook Tables above include all the LNG fuelled ships in operation and on orderbooks globally, and where yard contracts have been signed
3 Reason 1: Due to stricter emission requirements shipowners must do something to their ships. Status quo is not an option ECA Emissions requirements for existing fleets ECA Emissions requirements for newbuilds Requirement 2010: SOx < 1,0% 2015: SOx < 0,1% Compliance option
4 Reason 2: LNG offers environmental performance superior to any other feasible marine fuel Compared to conventional HFO marine fuel, LNG offer significant emissions reductions:
NOx: 85% reduction
SOx: ~100% reduction
Particles: ~100% reduction
CO2: 15-20% reduction
5 Reason 3: LNG offers improvedeconomicperformance An LNG fuelled ship will be more expensive than a ship with conventional fuel, but the investment will be returned through less fuel consumption, less maintenance, and most probably a cheaper fuel.
6 Reason 4: Regulation, rules, and standards are already in place in many regions Status is promising:
The International Maritime Organization (IMO) has issued interim guidelines for a code for gas fuelled ships (IGF)
Most class societies have now issued rules, DNVs have been available since 2001
Procedures for bunkering and harbour operations are being worked on.
One JIP finished
ISO work initiated
Reason 5: The technology is already proven 7 20 ships in Norway are floating evidence of the technical feasibility
Reason 6: The competitors may be doing it first 8 What if the competition gains a strong competitive advantage because they were quicker in implementing new technology and innovative design?
Follow the development in DNV’s LNG blog 9 http://blogs.dnv.com/lng
10 Safeguarding life, property and the environment www.dnv.com