Who loses and who gains with the new rules on fuel for ships
Basically, the shipping industry has three choices: install scrubbers, use the more expensive low-sulfur fuel oil, or switch to alternative fuels, including LNG.
Large operators such as Hyundai Heavy Industries Co, the world's largest shipbuilder or CMA CGM Group, one of the largest container shipping and shipping companies in the world, are already taking advantage of the opportunities that the new rules of the International Maritime Organization (IMO ) on fuel for ships has been given for 2020: the possibility of using only 0.5% or less of sulfur-based fuel oil.
The novelty has brought with it a strong push for liquefied gas as an alternative: Driven by stricter standards for sulfur emissions and the continued global acceleration towards a low-carbon future, the world's leading shipping operators and manufacturers are increasing the share of ships in fleets powered by alternative fuels. LNG has so far emerged as the first choice among alternative fuels such as marine diesel and low-sulfur fuel oil to power boats, paving the way for another growth opportunity for the natural gas and gas industries. liquefied gas.
STRICTER RULES ON THE CONTENT OF SULFUR IN TRANSPORT
Under the new rules of the International Maritime Organization (IMO), only 0.5% or less of sulfur-based fuel oil should be used on ships as of January 1, 2020, unless those ships have installed so-called scrubbers, systems that remove sulfur from exhaust gases emitted from bunkers, so they can continue to use high sulfur fuel oil (HSFO).
Basically, the shipping industry has three choices in light of this regulation: install scrubbers, use more expensive low-sulfur fuel oil, or switch to alternative fuels, including LNG.
THE ROLE OF THE PANDEMIC
Last year, the shipping industry and oil refineries, traders and buyers of oil were preparing for what was thought to be "the biggest disruptor in the oil market." Even though they didn't know, like anyone else, that the biggest disruptor of the oil market would be a global health emergency in 2020.
The pandemic, however, has accelerated demands for decarbonisation and all industries, including the shipping sector, have come under further pressure to reduce emissions.
FUNDAMENTAL MARITIME TRANSPORT
Shipping is essential to the global economy, as it carries over 80% of the volume of international trade and over 70% of its value, according to the United Nations Conference on Trade and Development (UNCTAD).
NAVAL INDUSTRY RESPONSIBLE FOR 2.7% OF GLOBAL EMISSIONS
The IMO's goal is to reduce the greenhouse gas emissions of the shipping industry by at least 50% by 2050 compared to 2008. According to a survey by Shell , the shipping industry is currently responsible for about 2.7 % of global carbon dioxide (Co2) emissions.
As shipowners and operators seek to reduce emissions, they are turning to alternative fuel sources, and LNG is so far the preferred replacement for sulfur-emitting fuels in the shipping industry.
27.2% OF THE CURRENT ORDER PORTFOLIO PER TONNAGE IS INTENDED FOR VESSELS POWERED BY ALTERNATIVE FUELS
According to recent research by Clarksons Research, reported by Hellenic Shipping News , 27.2% of the current order book by tonnage is destined for ships powered by alternative fuels. LNG-powered ships account for the largest share, 13.1 percent. The largest share of LNG in the global portfolio of ordered ships is that of LNG carriers, with 11.5 percent, says Clarksons.
There are currently 227 confirmed new construction orders for LNG-powered ships that are not LNG carriers, in addition to the 202 already operational LNG-powered ships. According to Clarksons, tankers are taking liquefied gas as an alternative fuel at the fastest rate, with 72 orders in addition to the 34 LNG-powered ships already operating in the global fleet.
LNG SUCCESS SUPPORTED BY PORT INVESTMENTS
"The case of LNG as a legitimate 'stepping stone' to achieving emissions targets is supported by investments in port facilities," Stephen Gordon, CEO of Clarksons Research, wrote in the report. As many as 124 ports have LNG bunkering facilities, up from 114 at the beginning of this year, and their number is expected to rise to 170 by 2022, Clarksons said.
THE CASE OF ROTTERDAM
Europe's largest seaport, the Port of Rotterdam , for example, supports the use of liquefied gas and offers discounts on port charges for LNG-powered deep-sea tankers and inland vessels with certificates greens.
THE LOCATION OF HYUNDAI
"Clean ships are now a primary consideration behind every single order," an executive at Hyundai Heavy Industries Co, the world's largest shipbuilder, told Costas Paris recently of The Wall Street Journal .
LNG FAVORITE SOLUTION FOR 2050
LNG is considered the preferred solution to the 2050 emissions target for 47% of the respondents in the ABS Future Fuels LinkedIn Survey , while hydrogen was the answer for 40%, according to the ABS survey. a provider of classification and technical consulting services for the marine and offshore industries. Only eight percent opted for ammonia and five percent for methanol as a future fuel for the industry.
WHAT THE CMA CGM GROUP WILL DO
One of the largest container shipping and shipping companies in the world, the CMA CGM Group , plans to have 26 LNG-powered container ships by 2022.
The group claims that liquefied gas reduces 99% of sulfur dioxide and fine particle emissions and 85% of nitrogen oxide emissions, and can reduce CO2 emissions by up to 20% compared to fuel-powered systems.
METHANE EMISSIONS COULD UNDERLINK THE GREEN CREDENTIALS OF LNG
While liquefied gas could reduce CO2 emissions, super-chilled fuel and its entire value chain starting with natural gas production is a major methane emitter, trapping 86 times more heat in the atmosphere than in same amount of CO2 over a 20-year period, the Council on Clean Transportation (ICCT) said in a January 2020 report.
Methane emissions from ships increased by 150 percent between 2012 and 2018, largely due to the increase in LNG-powered ships, many of which have engines that allow unburned methane to escape into the atmosphere, he said. the ICCT in August, commenting on an IMO report on greenhouse gas emissions in the sector.
METHANE IS NOT REGULATED BY THE IMO
"Methane is not yet regulated by the IMO, but it should be because it has a much stronger global warming potential than CO2," senior researcher Bryan Comer, who led the review of the study, said in a statement. We urge the IMO to include all greenhouse gases, including methane, in the next phase of the EEDI to limit emissions from new LNG-powered ships ”.
REDUCE CO2 EMISSIONS
Imo's next goal is to reduce carbon emissions in the maritime sector by 40% by 2030 and by at least 50% by 2050, compared to 2008 levels as reported by Argus Media . LNG is the most mature and scalable fuel of all alternative fuels due to its abundant availability in key ports and well-known properties. LNG emits 10-20% less CO2 than Ultra Low Sulfur Fuel Oil (VLSFO) and produces almost no nitrogen and sulfur oxides compared to conventional bunker fuels.
This is a machine translation from Italian language of a post published on Start Magazine at the URL https://www.startmag.it/mondo/chi-perde-e-chi-guadagna-con-le-nuove-regole-carburanti-per-navi/ on Sat, 02 Jan 2021 07:21:37 +0000.