Exclusive: LNG as a future fuel: ‘And that’s just chemistry’

“For all alternative fuels, you’re on a pathway. For LNG, it’s exactly the same pathway. You start with LNG, and you go to liquefied biomethane, then liquefied e-methane. It’s the same as the methanol pathway, it’s the same as the ammonia pathway, it’s the same as the hydrogen pathway,” says Steve Esau (pictured), chief operating officer of SEA-LNG before adding rather ominously: “there’s been a very successful campaign to discredit LNG in many circles”.

Esau’s organisation SEA-LNG has been representing LNG’s interests in the maritime industry sector for around eight years, during which time the fuel has seen an increase in charges of methane slip against it.

Last summer Bloomberg published The invisible climate impact of a cruise ship , an article regarding LNG-powered vessels’ emissions impact “still being understood” in light of methane slippage evidence. Esau says that while methane slip is a “recognised issue”, there are nuances that should be considered.

For instance, he says a lot of the issues with LNG methane slip focus on older Otto cycle engines which were not developed avoiding this in mind. However, in the last 20 years, methane slip has been addressed resulting in a 75-80% reduction in the phenomenon according to Esau.

“The FuelEU Maritime Regulation GHG emissions are regulated on a well-to-wake basis, including methane, so there’s a much stronger incentive for low pressure engine manufacturers to deal with the issue of methane slip,” says Esau.

The impact of regulation on the LNG market is not limited to methane slip, FuelEU Maritime may act as a catalyst for the greater adoption of green variations of the fuel like bio-LNG. The pooling mechanism under the EU regulation allows for shipowners’ emissions to be calculated across two or more ships, meaning a steep reduction in emissions in one vessel can reap rewards for an entire fleet.

“We have in our membership [SEA-LNG] a range of companies who are willing to offer liquefied biomethane. They’ve made investments in liquefied biomethane and with the regulations coming in, there’s going to be a real incentive to use it and they can supply it,” Esau says.

Drop in the ocean

One way posited to hit ambitious net zero targets by 2050 is by using drop in fuels, an ambition shared by SEA-LNG. Given that bio-LNG is almost chemically identical to fossil fuel-derived LNG, not only do engines not need to be retrofitted, but existing bunker infrastructure will also support the cleaner formation. Compared to ammonia, an alternative fuel which as a substance is widely available due to its use as a fertiliser but its toxicity and potential dangers have resulted in no bunkering whatsoever, bio-LNG may be an option.

“Data from the IEA and Mærsk Mc-Kinney Møller Center for Zero Carbon Shipping shows that if you look at sustainable biomass and the biomethane that you can produce from that biomass, you’re looking at a resource which is multiples of what shipping’s total energy demand is,” says Esau, adding that this is a macro picture and when the demands of other sectors such as aviation are taken into account, using bio-LNG as a drop in fuel makes sense.

Chemically, bio-LNG and green-methanol are produced in a similar manner. Esau says: “If you look at most of the green methanol, and it’s a tiny amount that’s being produced, it’s being produced from biomethane [same substance used for bio-LNG].” Esau states that he finds that “a little bit perplexing” because only 65% is recovered as green methanol compared to 95% using the same molecule for liquefied biomethane production, adding “and that’s just chemistry” to sum up this apparent paradox.

Balancing out the equation

Using bio-LNG for a cleaner maritime fleet would work in a similar manner to how power markets decarbonised. This is to say separate power infrastructure wasn’t built, moreover green energy production was incentivised with the cleaner result flowing through existing infrastructure. This is mass balance.

Esau says: “The same thing applies to the gas markets. You can have a biomethane producer inject the biomethane into a gas grid, and then you can take the liquefied biomethane. Which is offered at a terminal with a sort of guarantee of origin.” The latter point is vital because under FuelEU Maritime, verifiers are employed to determine a marine fuel’s carbon footprint throughout its entire lifetime making a certified green fuel at source an attractive proposition for shipowners. Especially when progressively more punitive financial penalties are imposed for not hitting the regulation’s emissions target from 2026.

Extensive existing infrastructure supporting bio-LNG for bunkering, coupled with the mass balance scenario, makes the fuel look well placed to flourish in an increasingly hostile regulatory environment. Even traditional LNG should be permissible under FuelEU Maritime until 2039 according to Esau but with green versions of the popular fuel available its presence in the maritime market might be extended indefinitely.

When asked why the entire maritime industry is not just waiting for greater amounts of bio-LNG to become available and use regular LNG in the meantime, Esau says it could be reluctance to endorse fossil fuel infrastructure investment during the wait. He says: “The argument would be if everyone’s going to just wait for green LNG then they’ll build a whole lot of fossil infrastructure.”

To sum up LNG’s role as a potential future maritime fuel, Esau says: “We see a multi-fuel future. Is LNG there? It’s sort of paid the pathway for greenhouse gas reduction, and then you’re on to a longer-term biosynthetic pathway. Our view is that there’s a lot the other fuels can learn from the experience of LNG.”

LNG as a fuel was first delivered by a vessel named ironically enough “Methane Pioneer” in1959 from Louisiana to Canvey Island in Essex. There is concern over its continued use as a maritime fuel as seen with pressure groups such as “Say no to LNG” but given its availability, existing infrastructure and greener variations, LNG may well endure.