Global multi-sector industry coalition SEA-LNG on Friday (23 September) responded to UCL Energy Institute’s report on ‘Exploring methods for understanding stranded value: case study on LNG-capable ships’:
The recent study from UCL, Exploring methods for understanding stranded value: case study on LNG capable ships, is a flawed academic exercise, detached from reality.
In setting out a framework for their analysis the authors make innumerable contestable and unsupported statements.
Somewhat confusingly, given the focus of their paper on stranded value risk, they ignore the fact that LNG dual fuel engines already provide ship owners with an insurance against stranded assets, as they can burn traditional marine fuels and are currently doing so in Europe as a consequence of the unprecedented spike in LNG prices.
Further, their analysis is based on an assumption that the decarbonisation pathway offered by LNG via bioLNG in the medium term to synthetic, or e-LNG, in the long term, will be less “competitive” than ammonia or other electro- fuels. This is highly problematic for a number of reasons. Predicting the future production costs of electro-fuels such as e-ammonia, e-methanol and e-LNG is extremely difficult given that 80% of the cost of producing these fuels is associated with the cost of producing the common renewable hydrogen feedstock. This can only be produced from renewable energy sources which will take years to develop to the necessary scale. Suggesting a particular electro-fuel will ‘win’ based on price, is reckless and is, at best, a guess at this point in time.
Ammonia is a highly toxic fuel, with a volumetric energy density, approximately 50% that of LNG. This means more toxic fuel and less cargo. Regulatory agencies around the world will need to work to counter the dangers of ammonia to protect seafarers as well as port workers and port communities.
Ammonia-fuelled engines are in the very early stages of development with massive uncertainties on issues such as pilot fuel requirements, GHG and NOx emissions and potentially deadly ammonia slip. Addressing these issues will demand significant amounts of time and money. Finally, massive infrastructure investments will be required to produce and deliver e-ammonia (and indeed other fuels such as e-methanol and e-liquid hydrogen) to the ships that may use it. Contrast this to the LNG pathway where the transportation and storage infrastructure already exists and is growing globally.
The results reported in this study are meaningless as they are based on subjective, negative assumptions on LNG. Such flawed analysis can confuse the industry, potentially providing ship owners and investors with justification to sit back, wait and continue to emit GHGs rather than invest in a technology like LNG that offers immediate GHG reductions today together with a clear and competitive pathway to decarbonisation in the decades ahead. Waiting is not an option.
Photo credit: SEA-LNG
Published: 26 September, 2022
Rotterdam’s intention to mandate the usage of MFMs goes down well with licensed bunker supplier VT Group; MFM providers supportive of move but stressed continuous monitoring is needed for optimum performance.
Cost of alternative bunker fuels, bunker operations and technology advancement are some considerations to be examined by the maritime industry, says Neo, director of SDE International Pte Ltd.
Kim Hyung Joon and Han Donghoon were planning to join the Singapore entities of Hartree Group - either Hartree Partners Singapore Pte Ltd or Hartree Marine Fuels - in October, discovered management.
‘When you think of Helmsman on the next occasion, think of us as lawyers with expertise in various fields. Come to us before a problem develops. It’s the process that matters,’ says Tang Chong Jun, Executive Director.
Bernard Chew was a former shareholder of MB Marine and was an authorised signatory of the company’s cheques at the material time, according to court documents obtained by Manifold Times.
Maersk, CMA CGM, BP and Stena Bulk give insights on availability of the three potential bunker fuel types, their plans, transition from fuel oil and LNG to alt fuels, how important sustainable marine fuels are to shipowners and more.