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Germany: Govt extends grant deadline on LNG equipment & retrofit for seagoing vessels

31 Dec 2020

The Federal Ministry of Transport and Digital Infrastructure of Germany (Das Bundesministerium für Verkehr und digitale Infrastruktur – BMVI) on Monday (28 December) extended the deadline on grant applications for equipping and retrofitting seagoing vessels to use liquified natural gas (LNG) as a marine fuel until December 31, 2021.

The BMVI explained the reason for the extension is that many projects could not be implemented in the past year due to the financial challenges for shipping caused by the COVID19 pandemic.

“We reacted to this unforeseeable crisis and extended the funding guidelines for an additional year. More projects are to commence in 2021, which will also boost investments in environmentally friendly ship propulsion,” said Enak Ferlemann , Parliamentary State Secretary BMVI.

“Despite the global crisis, we must continue to promote the sustainability of our shipping. That is why we continue to campaign consistently for the use of LNG as a low-emission alternative marine fuel and a pioneer for climate-friendly shipping. Both in terms of the fleet renewal of our own federal ships and German shipping as a whole.”

Under the LNG funding guidelines, grants for investing in LNG propulsion in ocean-going vessels go up to 40%, and depending on the size of the company, even up to 60%.

Investing in the use of LNG as a bridging technology offers the possibility of using increasing amounts of renewable bio and synthetic methane in the future and thus paving the way for climate-neutral shipping, noted the ministry.

As a result of the first two calls for funding, a wide variety of projects have already benefited from the grants from the BMVI for investments in environmentally friendly ship propulsion.

The BMVI said it is currently investing almost EUR 30 million (USD 36.9 million) in a total for 12 equipment and retrofitting projects.

Through the second call for funding, the BMVI put in more than EUR 6.3 million for the installation of LNG equipment for four new chemical tankers from the Hamburg shipping company John T. Essberger and more than EUR 4.8 million for the LNG conversion of two cement carriers from the shipping company Brise / Baltrader.

More information on the grant and its application form are available here.

Photo credit: Clemens van Lay on Unsplash
Published: 31 December, 2020

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