Potential market for LNG-fueled marine vessels in the United States

Abstract

The growing global concern over ship emissions in recent years has driven policy change at the international level toward more stringent vessel emissions standards. The policy change has also been an impetus for innovation and increased attention being paid to existing technologies in marine engineering that lessen ship emissions. It is estimated that the share of emissions from shipping to total global emissions is increasing, as world trade grows, and land-based emissions sources become cleaner. Shipping currently accounts for 2-4% of CO₂, 10-20% of NOx and 4-8% of SO₂ global emissions. Gas turbines and gas engines, hybrid diesel-gas systems, and dual fuel diesel electric engines are examples of the existing engine system technology that can burn natural gas as a fuel and lessen ship emissions. Liquefied Natural Gas (LNG) fueled vessels in the gas burning mode result in the elimination of all SO₂ emissions, and reduced NOx, CO₂, and particulate matter emissions compared to the emissions from a typical vessel powered by marine diesel. While the capital costs for the LNG-fueled systems are higher than for a typical diesel system, cost savings are generated due to the fact that LNG is historically less expensive than the other relatively lower-emissions fossil fuels, and the engine life is longer than a typical diesel engine. This study determines the feasibility of an LNG-fueled passenger and/or commerce market in the United States by analyzing the success of the current LNG-fueled activity around the world, incorporating the complexities of promoting LNG facilities in the United States, and the current LNG successes, both land-based and shore-side, in the United States.