LNG Once Again Becomes The Green Path Choice for Container Ships

      As container shipping companies continue to sign record breaking new shipbuilding orders, the choice of alternative fuels has become a key challenge. Recently, Andy McKeran, Chief Commercial Officer of Lloyd's Register (LR), shared four reasons why LNG deserves close attention from shipowners.

      In recent months, the number of new shipbuilding orders from major shipyards around the world has reached a historic high, and this trend has not slowed down. At the same time, the price of new shipbuilding is also continuously rising. Taking the largest 24000TEU container ship as an example, the single ship cost of this type of ship has exceeded 260 million US dollars. This also means that if the wrong technological route is chosen, the new ship may be phased out in less than 20 years, which will become a fatal investment mistake.

      In terms of fuel selection, container shipping companies face particularly daunting challenges, as container ships are faster, consume more fuel, and emit more greenhouse gases. Therefore, considering that from now until the middle of this century (basically equivalent to the full lifecycle of a newly built container ship), decarbonization regu

ations for shipping will be significantly tightened, but there is currently no fuel that can fully meet future requirements, and choosing suitable alternative fuels has become a fundamental issue.

      LNG, as the cleanest fossil fuel, emits 24% less than traditional fuels. And liquefied natural gas is supplied in major ports around the world, with a mature ship fuel supply chain, and has become a popular choice for many ship owners, especially the world's largest container shipping companies.

      Although fossil LNG is only a small step in the decarbonization process, many opinions believe that LNG is still the best fuel choice at present, and its potential to further reduce carbon emissions makes it a reliable "transition fuel".

      It should be clarified that this does not deny the importance of other alternative fuels. However, LNG's resurgence as a popular alternative fuel may affect investments in the development of other fuel infrastructure. This requires stakeholders and regulatory agencies to re-examine their strategies and policies to accelerate the process of fuel selection in the shipping industry.

      When it comes to LNG as a fuel, there are four key factors that may affect the choice of container shipping company executives.

 

      Key factor 1: Control methane emissions (methane escape)

      Key factor 2: Rapid development of bio LNG

      Key factor 3: Large scale availability of RFNBO

      Key factor 4: Rapid development of carbon capture and storage technology

      For many years, the availability and scalability of liquefied natural gas have been regarded as its key differentiation advantages. Nowadays, we are witnessing four different approaches gradually being introduced, namely controlling methane emissions, bio liquefied natural gas, electronic liquefied natural gas, and shipborne CCS. The combination of these factors makes liquefied natural gas unique in terms of risk diversification, and it can even be said that this is why liquefied natural gas has been repositioned as a reliable path for decarbonization in shipping.

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