SEA-LNG Highlights CII Performance of Retrofitted LNG-Fuelled Ships

The option with a VLCC retrofitted to run on LNG 'improves CII ratings substantially', according to the statement. Image Credit: SEA-LNG

In its latest material advocating for the use of LNG as a marine fuel, industry body SEA-LNG has focused on the performance of ships retrofitted to run on LNG under the Carbon Intensity Indicator measure used by the IMO.

The analysis, published today and available now on its website, looks at the performance of 2-stroke engines running on VLSFO, LNG and HSFO with a scrubber, it said in an emailed statement on Tuesday.

The option with a VLCC retrofitted to run on LNG 'improves CII ratings substantially', according to the statement.

The CII system awards ships a grade from A to E based on the carbon intensity performance noted in the data submitted to the IMO.

"Increasingly stringent environmental regulations will drive down the CII grades for existing ships and will have a detrimental effect on charter rates for those powered using fuel oil," SEA-LNG said in the statement.

"The financial viability of vessels that are just a few years old will be under severe threat if significant action to reduce emissions is not taken, such as an alternative fuel retrofit.

"Retrofitting vessels to use LNG fuel helps to future proof vessels, reducing costs and improving returns."

The latest paper joins a growing collection of analysis published by SEA-LNG as LNG bunkering continues to come under a sustained pushback on environmental grounds.

Opponents see LNG as a continuation of the use of fossil fuels, and as such is counter to the industry's goal to completely decarbonise. They also question LNG's near term emissions savings.

Supporters of LNG continue to use studies such as the one published today to focus on what they see as the GHG emission reductions achievable through the use of fossil LNG today, the lack of commercially viable and available alternatives, and the pathway to zero emissions using bio- and synthetic LNG in the future with increasingly greater emission savings.

As the debate over the viability of various future bunker fuels continues, LNG remains by far the most popular oil-alternative and the number of gas-powered vessels continues to grow - MSC's June order of 20 LNG-burning boxships a case in point. And while many of the current generation of LNG-powered vessels were ordered as such, SEA-LNG's latest paper also highlights that retrofitting vessels to burn LNG bunkers can also be attractive.

"For owners, modernising a ship through retrofit can be carried out more quickly than building a new vessel," the organisation said.

"New vessels typically take around two years to build.

"Accessing and scheduling work with a retrofit yard is often easier, as they have more capacity than newbuild yards.

"Retrofitting can also be arranged as part of a scheduled drydock call for a VLCC, meaning out of service time is reduced across the entire project."