Future Fuels for Shipping

Pathways to 2050

Christos Chryssakis
19 March 2015

1 DNV GL © 2013 19 March 2015 SAFER, SMARTER, GREENER

Global Impact of Shipping

Shipping:
 3% of global CO2 emissions
 10-15% of global NOx
 4-9% of global SOx

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Our Global Challenge: Climate Change

Source: International New York Times, May 14th, 2014

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Our Global Challenge: Climate Change

Source: IPCC, 2013

 Shipping has to contribute

– Technical Measures
– Operational Measures
– Introduction of Alternative Fuels

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Pressure to reduce GHG emissions to mitigate climate change

 Potential additional IMO CO2 requirements

 State-sponsored CO2 reduction agreements

 Separate stakeholder requirements

Alternative fuels may be a necessary part of the solution to reduce CO2 emissions

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Difficult Choices Ahead

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Increasingly strict regulations on emissions to air

A number of alternative fuels will ensure compliance with upcoming requirements

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Drivers for Alternative Fuels in Shipping

 Reducing Greenhouse Gas Emissions

 New Regulations: Pollutant Emissions
 Need for Low Sulfur Fuels
– In the ECAs (30-50 Mt/year today)
– Globally after 2020 (or 2025) ( 300 Mt/year)
 Fuel Availability – Energy Security - Cost

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Lessons from history: fuel shift

 1892: Diesel engine patented

 1903: First diesel powered vessels were
launched
 1912: First ocean-going diesel powered
vessel launced: MS Selandia
 1945: 60% of new ships are diesel powered
 1960: Most new ships are diesel powered

 2000: First LNG powered ferry: MF Glutra

 2014: 50 LNG powered ship scheduled for
delivery

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Alternative Fuels

for Low Carbon Shipping

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The Fuel Trilemma

Affordability

Sustainability Safety

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The following alternative options could be used in shipping

LIQUIFIED NATURAL GAS

• A proven and available solution

SHIP ELECTRIFICATION AND RENEWABLES

• Efficient use of energy
• Batteries enable use of renewable power

BIOFUELS
• Second and third-generation biofuels
• Can be mixed with conventional fossil fuels

OTHER OPTIONS
• E.g. LPG, methanol, ethanol, hydrogen

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Liquefied Natural Gas (LNG)

Main Issue:
Gas Engines, Dual- More than 50 ships
Bunkering
Fuel Engines in operation
infrastructure

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There are currently 139 confirmed LNG fuelled ship projects

Updated 17.03.2015
Excluding LNG carriers and inland waterway vessels

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Ship Electrification and Renewables

Renewables for
Pure electric
Hybrid ships Cold ironing power
ships
production

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Biofuels

Three sources: Main challenges:

Production capacity
edible crops; non- Land area required
increasing
edible crops and algae Long term storage

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Other Gaseous or Liquid Fuel Options

LPG: Liquefied DME: Di-Methyl

Methanol
Petroleum Gas Ether

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Life Cycle Assessment of Fuels

Well-to-Tank
Offshore Pipeline to Refinery Fuel tanker Receiving Distribution
gas/oil onshore terminal network
production refinery

Bunkering

Tank-to-Propeller

• Emissions to Air?
• Environmental Footprint?
Fuel used
for propulsion

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Environmental Footprint of Alternative Fuels

 Well-to-Propeller Greenhouse Gas Emissions

Tank-to-Propeller (combustion) emissions assumed to be

equal to CO2 absorbed by the plant during its lifetime

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Availability of Alternative Fuels

Fuel 2010 Total consumption

(million TOE/year)
Oil-based 4,028*
Natural Gas 2,858 (LNG: 250-300)
Biodiesel 18-20
LPG 275
Methanol 23
Ethanol 58
DME 3-5
Fischer-Tropsch 15
Biogas Very low
Hydrogen Very low

* Approximately 7-8% for shipping

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Future Scenarios – Medium Term 2015-2030

Local – Short Sea Shipping Global – Deep Sea Shipping

• Locally available fuel sources • Different needs, more conservative
• LNG in Norway, North • Globally available fuels
America
• Oil-based fuels (Low Sulphur)
• Methanol in Sweden
• LNG growing
• Biodiesel from various
feedstocks
• Electricity

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Future Scenarios – Long Term 2030-2050

Local – Short Sea Shipping Global – Deep Sea Shipping

• Locally produced fuels established • Globally available fuels
• Biogas • LNG
• Biodiesel • Biodiesel
• Biomethanol/ethanol • Nuclear?
• Electricity • Others?
• Hydrogen?

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Possible Future Scenarios
Cold Ironing/shore power
Testing of methanol, ethanol,
DME, biodiesel and biogas
Hybrid ship increasing fast in short
sea shipping/offshore shipping.
LNG bunkering infrastructure
developing.
2020
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Biofuels and biogas part of the fuel
mix for niche trades and regional
use.
Pilot installations of fuel cells with
hydrogen solutions in niche
segments as supplementary
propulsion power.
Hybrid and electric ships are
common in short sea/offshore.
LNG penetrating the deep sea
shipping segment
2030
Unexpected events could lead to
radical solutions, such as Carbon
Capture or Nuclear propulsion
Biodiesel and biogas will have an
important role
Hybrid and electric ships
conventional, especially for short
sea/offshore. Fuel cell with
hydrogen fuel produced from
renewables.
LNG could be the main fuel used in
deep sea shipping
2050
Getting ready for alternative fuels

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A structured, step-wise approach

Is the alternative fuel technically feasible and a

1 Fuel decision
commercially attractive solution for the vessel?

Technology
2 Will the new technology function?
qualification

Review of
Is the design ready for the alternative fuel and are
3 concept and
all necessary regulatory requirements met?
initial design

Does the design adequately deal with the risks of

4 Risk assessment
implementing the alternative fuel?

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Two options for making a vessel ready for an alternative fuel

Vessel ready for Vessel ready for

future retrofit operation today

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Selandia – first diesel powered ocean going vessel - 1912

Warning: Never mistake a clear view for a short distance (Paul Saffo, Stanford)

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Alternative Fuels for Shipping

Contact information:
Christos.Chryssakis@dnvgl.com
+47-91554678

www.dnvgl.com

SAFER, SMARTER, GREENER

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