Liquefied Natural Gas as fuel for ships

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1 Liquefied Natural Gas as fuel for ships Green Energy Port Conference Vigo, June 2017 Manuel Lage General Secretary 1

2 INDEX 1. About GASNAM 2. Introduction 3. Environmental & economical advantages 4. ECA (Emission Control Area) 5. Market situation 6. Infrastructure in Spain 7. Experiences in Spain 8. GASNAM LNG Bunkering Guidelines 9. LNG Barriers 10. Conclusions 2

3 Natural gas in mobility CNG LNG Cars, vans, light trucks, urban buses, MSW trucks, distribution trucks Long distance heavy trucks, coaches, non electrified railways and ships Natural gas is the only alternative to oil derived fuels covering any type of transport and mobility use CNG is the recommended urban fuel (taxis, delivery vans, MSW trucks, buses & coaches + ship auxiliary engines) LNG will become the future professional fuel. 3

4 Environmental Advantages Examples of Maritime Pollution 4

5 Emission Control Areas 5

6 Near zero emission concept: NO2 NO / NO 2 emission in Euro VI NG engines are zero 6

7 Near zero emission concept: PM PM emission in the Euro VI NG engines are only 4% of the limit 7

8 Market situation Nowadays there are over 100 vessels powered by natural gas in operation. On the other hand, there are another 100 vessels under construction which will be in operation in a short time, data of Spanish shipyards are in position to take advantage of this technological opportunity and 7 ships Dual-Fuel have been built in Spain during the last two years. 8

9 LNG terminals in the Iberian peninsula MIBEL. Iberian market for electricity MIBGAS. Iberian market for gas 9

10 Spanish logistics infraestructure China Japan Turkey Spain LNG road tankers in service: units 600 units 350 units 250 units, more that all the rest of Europe together Operating Companies in LNG regasification plants: Source: Enagás Main companies of LNG tanks: 10

11 Experiences in Spain (1) Cleanport Project: Conversion of the auxiliary engine to LNG (Gas Natural Fenosa and Baleària) New auxiliary engine LNG Pure Gas Power: kw LNG Tank: 30m3 First LNG Ferry in the Mediterranean Sea First Bunkering operation at Barcelona Port (January 2017) 11

12 Experiences in Spain (2) Core LNGas Hive Project Jetties improvements to carry out bunkering operations Design and construction of LNG bunkering ship Study of LNG demand Study to promote the use of LNG as fuel Fleet renewal plan for Balearia, with 3 new ferries, using LNG as fuel 12 LNG bunkering operations during the last years in several spanish ports: Vigo, Bilbao, Barcelona, Santander, Gijón, Cartagena and Algeciras) 12

13 GASNAM LNG Bunkering Guideline A first LNG Bunkering Guideline has been developed by GASNAM. This document brings together the equipment, both human and material, as well as the procedures or protocols necessary for the bunkering LNG to ships to be carried out under appropriate conditions of quality and safety, covering: Operating procedure 1. Assignment of responsibilities 2. Equipment 3. Lines connection 4. Checking lines temperature and pressure 5. Cryogenic pump start 6. Transfer completed and disconnection procedure Safety criteria Levels of protection Restricted area (three levels) The document is available on our web. Next developments: Guidelines for Ship to Ship and Pipe to Ship LNG Bunker, will be available shortly 13

14 LNG barriers Source: IGU 14

15 Conclusions and recommendations LNG as fuel is the best option for Shipowners: To meet emission reduction requirements due to their environmental advantages Economic benefits throughout the ship life cycle, operation and maintenance costs Availability of infrastructure to supply the demand for LNG as fuel Knowledge and technological maturity both in engines, installations and use of LNG but, Aid is needed from the EU in order to convert the European fleet towards a more sustainable ship operation. (CEF, TEN-T projects ) In Spain, vessels powered by LNG, pay a lower tax during their docking in port (-50%) (more incentives ) A tax regulation is needed to develop the LNG bunkering business during the firat years. 15

16 GASNAM Avenida Pío XII 61 Portal Madrid Teléfono: secretaria@gasnam.es Esta presentación es propiedad de GASNAM. Tanto su contenido temático como diseño gráfico es para uso exclusivo de sus socios. 16

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