Asia shares the world’s commitment to zero emissions – but what is right in one part of the world does not necessarily work in another. An assessment of the role and appetite for LPG and methanol as a marine fuel, as well as hydrogen fuel cells
Riviera Maritime Media’s Green fuels, green engines, the role of LPG and of hydrogen fuel cells: what’s right for Asia? webinar, supported by the Methanol Institute and the World LPG Association, was part of the Asia Maritime & Offshore Webinar Week, supported by the Hong Kong Shipowners Association and Intermanager.
Why are green fuels important? There is very limited time left for stakeholders in shipping to create a formalised sustainability programme to address future fuel selection. In a poll, 42% replied their fuel selection would take place in 2023 or later, while 30% thought the process would take place in 2022. 17% thought this would take place by the end of 2021, and only 11% had already selected the fuel of choice.
Methanol Institute chief operating officer Chris Chatterton opened the proceedings by explaining that in November 2020, IMO approved methanol in its interim guidelines for low-flashpoint fuels. This has opened the door to what is already a well-established fuel in transport, including shipping, and whose handling is well understood.
“Methanol can substantially reduce (GHG and other pollutants) in an existing vessel, as a retrofit, or as a newbuild in a cost-effective manner,” he said.
He noted that methanol is a highly flexible product and can be produced from a range of feedstocks including biomass, renewable electricity (electrolysis), natural gas and coal. This includes green methanol, comprising bio-methanol, bio-e-methanol and e-methanol.
Methanol’s long history in the chemical and industrial sector means it is readily available in most ports, and these industries are ahead of the curve compared to shipping when it comes to green fuels. In the shipping sector, a recent study from DNV highlighted how methanol and ammonia have an important role to play in the low-carbon fuel future of shipping.
World LPG Association (WLPGA) technical director Nikos Xydas presented the argument for the increased adoption of LPG as a marine fuel in Asia. The WLPGA covers the entire supply chain of LPG from producer to end-user and is a global organisation promoting the use of LPG. The main message regarding LPG as a marine fuel is that compared to 2020 compliant fuels, it produces 99% less SOx, 15% less CO2, 10% less NOx and 90% less particular matter (PM). Also, LPG does not suffer from methane slip.
Mr Xydas noted that LPG is an old industry, there are more than 1,000 facilities in ports worldwide, and smaller LPG carriers can act as LPG bunker vessels via ship-to-ship transfer. Therefore, it is somewhat surprising to hear that using LPG as a marine fuel is recent. Currently, there are four very large gas carriers using LPG as a marine fuel. In total, refenced Mr Xydas, there are 79 retrofit and newbuilding LPG-fuelled vessels on the orderbook.
But did the webinar audience agree that LPG as a marine fuel was viable outside the narrow confines of the LPG supply chain? Two-thirds (67%) agreed or strongly agreed that LPG was a candidate for vessels other than gas carriers. Only 13% disagreed and 2% strongly disagreed. 18% offered the more cautious view that more needs to be understood regarding the properties of LPG as a marine fuel before offering an opinion.
Do LPG and bioLPG offer a credible pathway towards emissions reduction? 83% agreed or strongly agreed, with the remainder disagreeing or strongly disagreeing.
The main focus of using LPG as a marine fuel going forward is in the LPG carrier sector and 60% of deliveries from 2021 are specified with LPG power. WLPGA estimates that by 2027, all new LPG carriers will be using LPG as a marine fuel, and 30% of new container ships will also be using LPG as a marine fuel.
What is the biggest factor hindering the adoption of LPG as a marine fuel? Uncertain future towards decarbonisation was the most popular choice (35%) in a poll, with 22% concerned about bunkering. Another 20% had issues with pricing and 15% with engine availability. Regulatory issues and incentives were a concern for 8% of those polled.
Looking ahead, technology is being developed to produce LPG from biomass, which will reduce the carbon footprint by approximately 8%, noted Mr Xydas.
PSA Marine head of fleet management Bernard Wong was on hand to provide the owner and operator’s view of the application of green fuels. These views can be summarised as: considerations, anticipated challenges and constraints, and how to start the process.
He noted there is a natural starting point. “The first consideration is cost: we need to understand how the green fuels are priced and how this will impact operations,” he said. “Does the price move in tandem with an index or a commodity?” Ultimately, the green fuel has to be commercially viable before it can be adopted.
In a poll, 68% said resolving engineering and operational details were the greatest challenges to adopting green fuels, and only 14% expected the challenge to be awareness of deployment and vessel load. Collaboration was cited as a challenge by 10% and 8% referred to challenges associated with small-scale projects.
“The second consideration is availability,” said Mr Wong, “Is supply and distribution reliable or could it be easily disrupted by factors such as adverse politics, or a cumbersome logistics chain?” He also included an assessment of rules and guidelines availability to ensure safe handling of the green fuel. Not least is the requirement for engines and vessel designs that will allow for practical adoption.
These concerns were echoed in a poll: What is the current biggest challenge with transition fuels? Nearly half (47%) were concerned with the availability of fuels, and 30% with the availability of engines. 20% were worried about the industry’s lack of experience with the fuels, while 3% cited lack of crew expertise with green fuels.
Mr Wong noted that under the operator’s criteria lie three important considerations: energy density, compatibility, and retrofit and maintenance. For an operator of harbour vessels, often the anticipated challenges comes down to the available space in harbour craft.
The key is gathering data and research, and this needs collaboration and a “coalition of the willing,” said Mr Wong.
BW Epic Kosan is a pressurised LPG and semi-ref vessel owner and operator and its performance and efficiency manager Rajat Saxena provided a SWOT analysis of LPG and hydrogen as marine fuels. Comparing LNG and LPG, Mr Saxena noted that LPG has a slightly lower energy supply than LNG, but a higher energy density. “What this means is you need lesser space to carry the same amount of energy of fuel compared to LNG,” said Mr Saxena. Both have similar levels of emissions reduction.
“Hydrogen has an extremely high energy supply, but very low energy density. Which is why to carry approximately the same amount of energy as LNG or LPG will require four times the volume,” said Mr Saxena.
SWOT Analysis: LPG
Strength: 10-15% NOx emission reduction, 90-100% SOx emissions reduction, 90% PM reduction, 13-18% CO2 emissions reduction, easier to handle than LNG, higher energy density, global infrastructure.
Weakness: Limited engine choice, lower calorific value than LNG.
Opportunities: Need for low-emissions fuel, possible use as fuel on LPG vessels.
Threat: Zero-emissions fuels.
SWOT Analysis: Hydrogen
Strength: Zero-emissions fuel (with fuel cells), very high calorific value.
Weakness: Low energy density, very high storage volume, developing technology, ROI is high, very low handling temperature, limited availability.
Opportunities: Need for zero-emissions fuels, major investment by some countries.
Threat: Slow technology development, ammonia as a marine fuel, disruption by nuclear technology.
What are the constraints on adopting green fuels? In a poll, 42% referred to compatibility with vessel fleet and operating profile as the biggest constraint when adopting green fuels, while 39% felt the biggest constraint was company resources. Energy density of green fuel was an issue for 19%.
Finally, what is the most viable transition fuel? Nearly two-thirds (64%) surveyed chose LNG, with LPG some way behind at 16%, then methanol/ethanol (13%) and ship-based carbon capture (7%).
Asia Maritime & Offshore Webinar Week, 12-16 April 2021. Register to attend and have access to nearly a year’s worth of previous webinars.
Panel image: From left to right: BW Epic Kosan performance & efficiency manager Rajat Saxena, Methanol Institute chief operating officer, Chris Chatterton, PSA Marine head of fleet management Bernard Wong, and WLPGA (World LPG Association) technical director Nikos Xydas
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