Domestic shipping must reduce their CO2 emissions by 50% within 2030 compared to2005 levels. The shipping industry are expected to reduce their emissions and implement more environmentally friendly fuel alternatives, but require access to infrastructure capable of handling green fuels and the potential added risk involved. A natural starting point would be to investigate if the existing infrastructure for liquefied natural gas (LNG) can be adapted to green fuels, such as biogas and ammonia. The alternative is that new infrastructure has to be constructed.
Some of the green alternative fuels have properties that differs from traditional fossil fuels such as heavy fuel oil (HFO) and diesel, as well as LNG which is steadily getting more widespread and common. This results in other, and in some cases stricter, requirements to materials and cargo handling procedures to ensure safe operations. The main challenges and concerns with some of the green, alternative fuels are either associated with an increased risk of fire and explosion, or potential toxicity risk. It is therefore essential that existing infrastructure can safely handle the challenges of alternative green fuels if it is to play a role in the future supply chain of such fuels.
Gasnor is overseeing partner and will lead the pilot. Additional participating partners are listed to the right. In addition, Egil Ulvan Rederi is a pilot contributor.
Goal of pilot project
The Green Shipping Programme is, among other things, aimed to promote sustainable logistical solutions. It will be easier to achieve rapid and cost-effective cuts in shipping emissions if existing infrastructure can be used to achieve a fast and cost-efficient reduction of emissions from shipping.
The goal of the study is to assess the feasibility of using existing LNG infrastructure to supply green fuels to the shipping industry, from a commercial, technical and safety perspective.
The main goals of the pilot study are:
- Clarify whether ships built for operation on gas today will later be able to use low- and/or zero emission fuel without major additional investments.
- Facilitate infrastructure for new biogas production.
- Facilitate a customer base for biogas.
- Avoid parallel infrastructure being built for bunkering of different zero emission fuels
If the above targets are accomplished, the shipping industry may be able to rapidly achieve climate and environmental benefits by operating on low emission fuels from existing infrastructure. Later, it will be possible to use the same infrastructure for zero-emission fuel as soon as it is practically possible. Utilizing existing value chains, the need for new investments will be reduced, and lead to a faster transition to renewable energy.
Status
The pilot was launched in May 2022. In the pilot study, four work packages were defined with the following focus areas:
- Users/Market – What usage patterns and needs will we see along the coast?
- Fuel – Mapping relevant fuels, as well as existing, planned, and future production capacity for these.
- Engine – Is there potential for widespread conversion to relevant zero‑emission fuels?
- Infrastructure/Bunkering Facilities – Can today’s LNG infrastructure be used seamlessly when transitioning to green ammonia and biogas?
Work Package 1, which assessed the market and demand along the coast, showed that more than 100 vessels (larger than 2,000 dwt and built between 2018 and 2022) may seek zero‑emission solutions. This number is expected to grow significantly, as 90% of the Norwegian Shipowners’ Association’s members believe they will be climate‑neutral by 2050.
Next, the study mapped “Norwegian” projects related to biogas and green ammonia production along the coast (Work Package 2). Challenges related to LNG tank facilities were identified, and the pilot then collected information from relevant projects regarding potential vessel conversions.
In May 2023, market demand was further assessed based on the needs of the Shipowners’ Association’s members.
A mapping of “Norwegian” projects related to the production of biogas and green ammonia was also carried out.
Gasnor’s facility at Mongstad was used as a case to identify challenges related to infrastructure and bunkering.
In autumn 2023, SINTEF conducted a study aimed at evaluating the potential for emission reductions across various fuel types.
The study demonstrated significant potential for biogas.
Gasnor estimates that 10–20 TWh could be produced in Norway, and that LBG can be integrated into existing infrastructure with ease.
The pilot was concluded at the turn of the year 2023/24. Its conclusion was:
The project is feasible, but there are still several technical and cost‑related barriers to using the existing LNG infrastructure for supplying green ammonia and biogas to ships.
Read more
- Gasnors press release (in Norwegian only) was published October 2022.