Marine
Air pollution standards: The International Maritime Organization (IMO), the U.S., and Canada have designated waters off North American coasts as North American Emission Control Areas for both fuel-sulfur standards and NOx emission standards. This area includes most coastal waters up to 200 nautical miles from the coasts of the continental United States and large portions of coastal waters around Alaska and Hawaii, in addition to significant portions of the Canadian coasts and the French Islands of Saint Pierre and Miquelon. Area waters surrounding Puerto Rico and the U.S. Virgin Islands are also similarly designated as the U.S. Caribbean Sea Emission Control Area.
Decarbonization challenge: In July 2023, the IMO adopted its Revised GHG Strategy that reduces CO2 emissions per transport work as an average across international shipping by at least 40% by 2030 compared to 2008 figures, rising to a sectoral target of net-zero emissions by or around 2050.
Global LNG-fueled vessel investments:
- Tankers – 133 operational, 90 on order
- Containers – 66 operational, 198 on order
- Bulk – 41 operational, 32 on order
- Roll on/Roll off & Passenger car ferries – 35 operational, 14 on order
- Car carriers – 18 operational, 139 on order
- Cruise ships – 14 operational, 25 on order
Further, 51 LNG bunkering vessels are in operation today with an additional 15 on order.
Source: SEA-LNG, View from the Bridge 2023-2024
Off-Road
Today, most off-road NGV activity is occurring in mining applications. The largest mine trucks can typically burn between 150,000 and 400,000 gallons of fuel annually. There are more than 28,000 large mine trucks (>100 ton capacity) worldwide.
Shell/Caterpillar signed an agreement to test new LNG dual-fuel engines for oil sand mining trucks in Alberta, Canada, in 2016.
Railroad
There are 561 freight railroads operating in the U.S. today. The top 7 Class 1 railroads (line-haul freight) consume over 3.6 billion gallons of diesel fuel per year, which translates to 10 million gallons per day, representing 7 percent of all diesel consumed in the U.S. It is estimated that an LNG locomotive costs $1 million more than its diesel counterpart. Because trains are kept in service for relatively long periods of time and consume huge amounts of fuel, the economics for LNG can be a good solution for this industry.
The price spread between the fuels allows for a relatively quick payback of the incremental cost to implement LNG locomotives, and it translates to tremendous long-term savings. These savings can seriously impact the bottom line of rail operators because the industry’s fuel costs represent an average of 23 percent of its total operating expenses.
Indiana Harbor (Chicago switch carrier) is converting 31 locomotives to CNG.
CSX and GE are pilot testing LNG technology for locomotives.
