New Canadian Report Suggests Reduced Energy Costs and Emissions Through Use of Natural Gas Bunkers

by Ship & Bunker News Team
Wednesday June 28, 2017

A new report released Tuesday by the Canadian Natural Gas Vehicle Alliance (CNGVA) suggests "major" economic benefits and emissions reductions through the use of natural gas as a marine fuel on Canada's Great Lakes and East Coast.

The report, "Liquefied Natural Gas: A Marine Fuel for Canada's Great Lakes and East Coast," provides a summary of a study undertaken in partnership with Transport Canada, which examined the benefits of liquefied natural gas (LNG) and compressed natural gas (CNG) bunkers.

"Natural gas utilities are playing a critical role in advancing the use of clean and affordable natural gas in Canada's transportation markets, and this includes fleets that operate at Canada's ports," said Timothy M. Egan, President and CEO of the Canadian Gas Association.

"This report is useful to all stakeholders as it provides information on the marine opportunity and makes recommendations on how to realise that opportunity."

Specifically, the study suggests that, by 2025, 148 LNG-powered vessels could be operating on the Great Lakes and East Coast, requiring 783,000 metric tonnes of LNG per year from Canadian port facilities.

Further, the study found that vessel owners could see annual fuel cost savings of 25 to 50 percent in 2025, as well as significant emissions reductions, including a saving of 880,000 tonnes per year of CO2e emissions, 37,100 tonnes per year in sulfur oxides, 19,600 tonnes per year in nitrogen oxides, and 6,100 tonnes per year in particulate matter.

"With the arrival of LNG powered ferries in eastern and western Canada, this promising clean and affordable marine fuel has begun to gain a toe hold in Canada. Ongoing collaboration remains essential to clearing the regulatory path to ensure that Canada's abundant natural gas resources can be more widely used in the marine sector," said Bruce Winchester, Executive Director of CNGVA.

Serge A. Buy, CEO of the Canadian Ferry Association, commenting on the study findings, said: "Canadian ferry operators are increasingly interested in adopting LNG as a fuel source.

"The environmental benefits and cost savings show that there is strong potential for the sector. With increased access to LNG will come greater adoption."