World News
LNG's Role in Decarbonisation Holds, With or Without IMO NZF: WinGD
Swiss engine manufacturer WinGD sees LNG as a viable pathway to shipping decarbonisation, with or without the IMO's net-zero framework (NZF).
Even if the NZF had been adopted by the IMO in October, it would not have marked the end of LNG, Benny Hilström, Vice President, Market Development at WinGD, said in an article published on the firm's website on Thursday.
"The NZF does not mean, as some have suggested, that the case for LNG fuel or for installing dual-fuel LNG technology is over," Hilström said.
He said dual-fuel LNG engines can run on cleaner alternatives such as bio-LNG, keeping both the technology and the fuel relevant.
However, Hilström said the delay in adopting the framework has slowed the shift away from fossil LNG.
"Had the NZF been adopted with reduction targets and penalties stringent enough to drive people towards bio-methane, and rewards high enough to encourage e-methane production and use, the transition towards those fuels would have come sooner," he said.
He said the delay has prompted more shipowners to consider LNG as a fuel option.
"Without a global carbon pricing policy and immediate e-fuel incentives, it remains the most affordable, widely available and well-established of all marine alternative fuels," he explained.
WinGD also offers ammonia and methanol-capable engines.
The IMO's NZF failed to reach an adoption during the Marine Environment Protection Committee (MEPC) session in October after members voted in favour of a motion to delay adoption for a year.
Key Bunker Prices More
| VLSFO | MGO | |||
|---|---|---|---|---|
| $/mt | +/- | $/mt | +/- | |
| Singapore | 459.50 | 6.50 | 760.00 | 3.00 |
| Rotterdam | 425.00 | 0.50 | 741.50 | 0.50 |
| Houston | 439.50 | 3.50 | 740.50 | 8.00 |
| Fujairah | 452.00 | 7.50 | 744.00 | 7.00 |
| Global 20 Ports Average | 486.50 | 3.50 | 811.50 | 10.00 |
| Global 4 Ports Average | 444.00 | 3.00 | 746.50 | 0.50 |
| Global Average Bunker Price | 524.00 | 13.00 | 839.00 | 3.50 |
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