DNV+recommends+LNG+fuel+shipping+for+North+America

Houston: “Domestic ships in North America have three options to meet new emissions control regulations; install scrubbers, burn low sulphur fuel or switch to LNG fuel for the ship’s propulsion,” says Kenneth Vareide, director of operations for DNV North America Maritime.

Kenneth Vareide, director of operations for DNV North America Maritime.

DNV’s new report, Greener shipping in North America, proposes that LNG l is the most efficicient and economical way to meet air emissions requirements in the US and Canada that take effect in August 2012. Environmental Control Areas (ECA) will gradually be enforced along the North American coastlines. They will have full force in 2015 and 2016, leaving shipowners a limited number of options for modifications to their ships if they want to continue trade in North America.

Says Kenneth Vareide, “A LNG fuelled propulsion plant may add about $3.6 million to the cost of a typical domestic cargoship, however, over the operating life of the vessel, at today’s gas rates, LNG fuel would save more than $4 million over scrubbers and $12 million for low sulphur fuel.”

Specifically, the use of LNG fuel for a ship would reduce nitrous oxide (NOx) emissions by 85-90%, sulphur dioxide (SO2) and particulate matter by almost 100%, and it would result in 15-20% less greenhouse gas emissions.

Best and most cost-efficient
DNV’s report is the first study of US and Canadian domestic shipping and recommendations to meet new environmental legislation for North America. The report says that implementing LNG fuel on a significant portion of the fleet is the best and most cost-efficient solution for reducing environmental emissions in North America.

“LNG is particularly an attractive alternative for vessels with a fixed trading pattern, which should fit well with the biggest segments; ferries, offshore support vessels and tug/push boats. Besides, much of the coastal trade in the US is fixed in its trade pattern and we have been in contact with several companies that are considering LNG for newbuildings and conversions,” says Kenneth Vareide.

The report covers:

  • North American shipping statistics
  • New environmental legislation for ship emissions in North America
  • LNG’s economic performance
  • LNG’s environmental performance
  • LNG technology
  • LNG safety
  • LNG availability

Read the DNV report:
http://www.dnv.com/resources/reports/
Contacts:
Kenneth Vareide
Director of operations for DNV North America Maritime
Kenneth.Vareide@dnv.com
+1 713 858 9091 (cell)

Lars Petter Blikom
DNV segment director LNG
Lars.Petter.Blikom@dnv.com
+47 913 98 477 (cell)

Blaine Collins
Director of external affairs, Division Americas and Sub-Saharan Africa
Blaine.Collins@dnv.com
+1 201 512 8900 (Office)
+1 845 270 4831 (Cell)

About DNV:

DNV is a global provider of services for managing risk, with safeguarding life, property and the environment as its purpose. Organised as an independent, autonomous foundation, DNV balances the needs of business and society, based on its independence and integrity. With its vision of creating a global impact for a safe and sustainable future for its customers and, ultimately society at large, DNV serves a range of high-risk industries, with a special focus on the maritime and energy sectors.

Established in 1864, the company has a global presence with a network of 300 offices in 100 countries, and is headquartered in Oslo, Norway. Its prime assets are the knowledge and expertise of its 9,000 employees from more than 99 nations. In the US DNV has about 700 employees, headquartered in Houston where about 300 people work.

Recognised as a highly respected third party providing trust and confidence for its customers’ stakeholders, DNV has been authorized by governments and national authorities to provide services in countries worldwide.

With ambitions to have a ‘global impact’ on the sustainability agenda, DNV is also focusing on the development of green, sustainability-related services for its clients.

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