EMEA News
VDR Welcomes New German Financing Programme for LNG-Powered Vessels
The German Shipowners' Association (VDR) today welcomed a new financing programme to support liquefied natural gas (LNG)-fuelled vessels announced by Germany's Federal Ministry of Transport and Digital Infrastructure.
"The stimulus programme will help German shipowners cope with the substantial capital costs associated with gas-operated ships while delivering major environmental benefits. By using LNG we can reduce emissions significantly, which will further improve air quality in coastal areas and ports," said Ralf Nagel, CEO of VDR.
The funding is intended to help outfit newbuildings with LNG propulsion systems, as well as upgrade existing ships to dual-fuel power.
"Retrofitting or building ships to run on LNG is a complex and expensive endeavour. Compared to conventionally powered ships, LNG engines, fuel tanks and supply lines are 20 to 30 percent more expensive," said VDR.
As Ship & Bunker has reported, VDR has previously called for government subsidies on behalf of German shipbuilders to advance that country's LNG industry.
"Germany's shipowners fully support the Federal Government's mobility and fuel strategy, and expressly welcome the stimulus programme for LNG as an alternative ship fuel," said Nagel today.
