New Report Says Reduce Energy Costs and Emissions by Using Natural Gas as a Marine Fuel

OTTAWA, June 28, 2017 /CNW/ - A new report released today by the Canadian Natural Gas Vehicle Alliance (CNGVA) says major economic benefits and emissions reductions can occur by expanding the use of natural gas as a marine fuel on Canada's Great Lakes and East Coast. 

Liquefied Natural Gas: A Marine Fuel for Canada's Great Lakes and East Coast is a summary report of an in-depth study undertaken in partnership with Transport Canada and with the support of a broad cross section of industry, government and other stakeholders. The report concludes that using liquefied natural gas (LNG) and compressed natural gas (CNG) as a marine fuel will provide significant economic benefits to the owners and operators of vessels, especially coastal vessels. As well, the report notes that natural gas is a clean energy option that offers a means of reducing emissions to meet current and pending environmental regulations. 

The report concludes that under a "medium" adoption scenario:

• 148 LNG vessels could be operating on the Great Lakes and East Coast, requiring 783,000 metric tonnes of LNG annually provided through Canadian port facilities in 2025.
• Vessel owners may see annual fuel cost savings of 25 to 50 per cent in 2025.
• Significant emissions reductions in 2025:
• 880,000 tonnes/year in CO_2e emissions
• 37,100 tonnes/year in sulphur oxides
• 19,600 tonnes/year in nitrogen oxides
• 6,100 tonnes/year in particulate matter

Several barriers to greater adoption of natural gas are outlined including LNG and CNG production and distribution capacity, human resources needs, and unfamiliarity with the technology and fuel.  The report makes a number of recommendations to address these barriers.

LNG is natural gas that is cooled to a liquid state to -162 degrees Celsius to reduce its volume by 620 times compared to natural gas at normal pressure. CNG is natural gas that is compressed at a high pressure to reduce its volume by up to 300 times compared with natural gas at normal pressure.

Quotes
"With the arrival of LNG powered ferries in eastern and western Canada, this promising clean and affordable marine fuel has begun to gain a toe hold in Canada. Ongoing collaboration remains essential to clearing the regulatory path to ensure that Canada's abundant natural gas resources can be more widely used in the marine sector."

Bruce Winchester
Executive Director
Canadian Natural Gas Vehicle Alliance

"Natural gas utilities are playing a critical role in advancing the use of clean and affordable natural gas in Canada's transportation markets, and this includes fleets that operate at Canada's ports.  This report is useful to all stakeholders as it provides information on the marine opportunity and makes recommendations on how to realize that opportunity."

Timothy M. Egan
President and CEO
Canadian Gas Association

"LNG and CNG offer significant economic and environmental advantages as a marine fuel and as an energy solution for other transportation markets. Enbridge's natural gas assets in Ontario, Quebec, New Brunswick and Nova Scotia provides affordable ways for Canada to reduce carbon, lower emissions and remain competitive."

Cynthia Hansen
Executive Vice President, Utilities and Power Operations
Enbridge Inc.

"Vard Marine is very pleased to have been involved in this project.  With several of our LNG-fueled designs now in operation in Canada, we have been able to see directly the environmental and economic benefits of moving to this clean energy option.  This report should encourage other stakeholders to move forward with their own initiatives."

Andrew Kendrick P.Eng.
Vice President Operations
Vard Marine Inc. (Ottawa)

"Canadian ferry operators are increasingly interested in adopting LNG as a fuel source.  The environmental benefits and cost savings show that there is strong potential for the sector.  With increased access to LNG will come greater adoption."

Serge A. Buy
Chief Executive Officer,
Canadian Ferry Association

Project Participants

American Bureau of Shipping		Canadian Natural Gas Vehicle Alliance		FortisBC		Société des traversiers du Québec
Babcock Canada		Canadian Standards Association		Gaz Métro		Seaspan
BC Ferries		Class NK		Lloyd's Register		Shell
British Columbia Institute of Technology		DNV-GL		Natural Resources Canada		STX / VARD Marine
British Columbia Ministry of Transportation		Enbridge Gas Distribution		Ontario Ministry of Environment and Climate Change		S & T2 Consultants
Canada Steamship Lines		Encana		Port of Metro Vancouver		Teekay
Canadian Natural Gas Initiative		Environment and Climate Change Canada		Port of Montreal		Transport Canada
		Ferus		Rolls-Royce		Union Gas
						Wartsila
						Westport Inc.

NOTE: Italics indicate participants in the "Liquefied Natural Gas: A Marine Fuel for Canada's Great Lakes and East Coast study. Non-italics indicate participants in both the "Liquefied Natural Gas: A Marine Fuel for Canada's Great Lakes and East Coast" study and the earlier "Liquefied Natural Gas: A Marine Fuel for Canada's West Coast" study.

Associated Links 
Report: Liquefied Natural Gas: A Marine Fuel for Canada's Great Lakes and East Coast 
Report: Liquefied Natural Gas: A Marine Fuel for Canada's West Coast 
Go With Natural Gas

About
The Canadian Natural Gas Vehicle Alliance advocates on behalf of Canada's natural gas vehicle industry. CNGVA members are leading Canadian companies involved in research, manufacturing, fuel and infrastructure supply, vehicle conversion technology and installation, consulting, and international project management.

SOURCE Canadian Natural Gas Vehicle Alliance (CNGVA)

For further information: Bruce Winchester, Executive Director, Canadian Natural Gas Vehicle Alliance, [phone], [email protected]

Related Links

www.cga.ca