West Coast Project to Show Way for LNG Use in Canada's Marine Sector

OTTAWA, May 29, 2013 /CNW/ - A joint industry project focused on the use of liquefied natural gas (LNG) on the West Coast aims to identify and address barriers for LNG as a marine fuel in Canada. The estimated $1.2 million project involves 17 participating organizations including Port Metro Vancouver, BC Ferries, Seaspan, and the British Columbia Institute of Technology along with marine classification societies, technology and services providers, standards development groups, federal and provincial governments, and natural gas producers and suppliers.

Stringent emissions regulations coming into force in 2015-2016 mean that vessel owners operating within 200 miles of the West Coast and in other regions of Canada will need to use lower sulphur distillate fuel, install exhaust aftertreatment technologies or switch to LNG in order to comply. LNG offers significant air quality benefits producing 80% lower NOx and particulate matter, and a 90% reduction in SOx emissions. LNG can also reduce greenhouse gas emissions by up to 25% from ships.

"Our government is pleased to work with partners to determine how LNG can be used as a safe and environmentally responsible marine fuel on the West Coast of Canada," said the Honourable James Moore, Minister Responsible for British Columbia and Minister of Canadian Heritage and Official Languages.  "In addition, results of this work will be applicable to similar initiatives in the Great Lakes and St. Lawrence Seaway, as well as the East Coast of Canada."

"LNG bunkering is being considered by major ports around the world as one way to reduce emissions and enhance sustainability," said Duncan Wilson, Vice President, Corporate Social Responsibility, Port Metro Vancouver, "We are committed to growing Canada's largest Gateway to the Asia Pacific in a sustainable way and LNG offers the potential to improve environmental performance and enhance our competitive position."

BC Ferries sees LNG as a viable alternative to marine diesel fuel. "While we already use low sulphur diesel, we are taking it to the next level by exploring the use of alternative fuels to reduce costs and lessen the environmental impact of our operations," according to Mike Corrigan, President and CEO. "LNG is an attractive option as it offers fuel savings and emissions reductions through the use of an abundant local resource."

Launched in late 2012, the West Coast Marine LNG project will conclude with the release of a final report in November 2013 documenting technology readiness, training, safe operations and regulatory requirements, and environmental and economic benefits from a Canadian point of view. The project is supported by the Government of Canada under the direction of the Canadian Natural Gas Vehicle Alliance (CNGVA) who is playing a lead role in coordinating participation and resource contributions. The CNGVA is Canada's national trade association that advocates for greater use of natural gas as a primary transportation fuel for the benefit of Canada's economy and environment.

Statements from Project Participants:

ABS
"As a global leader in providing classification services to vessels powered by LNG, ABS is proud to be a part of joint industry project.  We are dedicated to helping the marine industry identify the practical and safe solutions needed to develop the next generation of eco-conscious vessels.  We look forward to bringing our experience in the LNG space to the table."

- Tom Kirk - Director, Environmental Programs

CSA Group
"CSA Group, as Canada's largest Standards Development Organization, is committed to helping ensure that codes and standards work for people and businesses throughout Canada, North America, and the world.  Our national and international standards systems work to address and safely enable new technological areas such as the use of LNG and alternative fuels in the marine sector. CSA Group is dedicated to facilitating new, sustainable technologies that help significantly reduce the negative impact of emissions on the environment."

- Greg Orloff, Director of Energy - Fuel Burning and Distribution Equipment

Encana Natural Gas Inc.
"At Encana, we believe natural gas is a clear choice in meeting the increased demand for energy while at the same time reducing our carbon footprint. The use of LNG as a marine fuel in Canada further demonstrates the environmental benefits of natural gas in transportation, with up to 30 percent less carbon dioxide emissions than diesel and 80 percent less smog-causing particulate matter. Natural gas is an affordable, abundant and Canadian solution for a secure energy future."

- Paul Evans, Chair CNGVA and Team Lead, Strategy & Planning

FortisBC
"Serving more than 1.1 million customers, FortisBC provides energy solutions to British Columbians, most recently in the transportation sector. We're helping heavy truck fleets transition to natural gas in order to reduce their environmental impact and lower their operating costs. Extending the benefits of LNG to the marine sector is a natural next step towards a lower carbon transportation future, resulting in lower shipping and transit costs that can be passed on to British Columbians."

- Doug Stout, Vice President, Energy Solutions and External Relations

Lloyd's Register Canada Ltd.
Lloyd's Register has considerable expertise in gas technology, risk, and operations and we are applying our skills across the entire gas supply chain, from gas ships and gas as fuel to land-based and floating offshore installations. We are totally independent. Along with our expertise, this impartial approach is vital. We help the industry get new designs 'right' and help all stakeholders and regulators to understand the 'big' risk picture.

- Marcel LaRoche, Marine Manager Western Canada

Rolls-Royce Canada Ltd.          
"Rolls-Royce has been leading the use of LNG for Marine Power in Europe since 2005 with multiple marine power installations on ferries, offshore support, short-sea shipping cargo vessels and tugboats. We are excited and proud to be part of the LNG fuelling initiative for the West Coast of Canada. We hope that the West Coast Marine LNG joint industry project will serve as a guiding tool for various marine industry participants, who are interested in implementing this fuel of the future for their vessels."

- Nick Firtonea, Programme Director, Merchant, North America

Seaspan ULC
"The use of natural gas as a marine fuel, and liquefied natural gas as the storage medium falls directly in line with our core values of care for the environment and efficiency, because of this we are committed to exploring its possible uses in all aspects of our business."     

- Jonathan Whitworth, CEO

Wärtsilä
"With more than 500 vessels and over 1,100 engines either in operation or sold with Wärtsilä Dual Fuel Engines, we are seeing realization of the benefits LNG provides to the environment and to vessel operators and owners as a clean, sustainable marine fuel.  This project can serve as a guide to enable interested parties to capture the potential of LNG."

- Quentin Stewart, Sales Manager

Westport Innovations          
"As a global leader in natural gas engines, Westport understands the enormous potential for LNG as a marine transportation fuel. The West Coast is also Westport's backyard, so we feel it's important to participate in this joint initiative between the federal government and industry players to bring LNG to the marine sector."

- Paul Blomerus, Senior Director, High Horsepower

PDF available at: http://stream1.newswire.ca/media/2013/05/29/20130529_C2980_DOC_EN_27219.pdf

SOURCE: Canadian Natural Gas Vehicle Alliance

For further information:

Please visit www.cngva.org or contact:

Alicia Milner
Canadian Natural Gas Vehicle Alliance (CNGVA)
Tel: (613) 564-0181
E-mail: Alicia.Milner@cngva.org