Regulations, Not Availability, Holding Back Uptake of Carbon Neutral Bio-LNG: SEA-LNG

Sea-LNG says bio-LNG can help decarbonize shipping today. Image Credit: SEA-LNG

LNG bunker advocates SEA-LNG say the use of carbon neutral bio-LNG is being held back by regulations, rather than a lack of availability.

"Bio-LNG can help decarbonize shipping today," the group claimed in its latest op-ed published today.

While once championed as the future-fuel of choice when the industry was focused on lowering sulfur emissions, as the debate has switched to decarbonization efforts the fact LNG is a fossil fuel has come under scrutiny with critics claiming those backing gas bunkers risk a significant dollar value in stranded assets.

LNG bunker advocates say this is not true, and a key part of their argument is that fossil-LNG assets can be used for delivering carbon neutral bio-LNG once it is available.

"Bio-LNG utilises existing infrastructure built up over decades for LNG. As sustainable sources of bio-LNG are often distant from the maritime demand for bio-LNG, so clear terms for a Guarantees of Origin (GoOs) system are needed, to allow bio-LNG product to capitalise on existing gas infrastructure," it said.

"Maximising bio-LNG's potential role in decarbonising the shipping industry will require a supportive regulatory framework."

As far as availability goes, the results of a SEA-LNG study published last month indicated that pure (100% carbon neutral) bio-LNG could cover up to 3% of the total energy demand for shipping fuels in 2030 and 13% in 2050.

Blending with fossil LNG could expand this while also keeping within current IMO targets, with SEA-LNG suggesting a 20 bio/80 fossil blend of gas bunkers could meet 63% of Shipping's total energy demand by 2050.