Liquified Natural Gas (LNG) & Bio-LNG

Charles Dubouix Last update 23/06/2023

Alternative Fuels: Liquified Natural Gas (LNG) & Bio-LNG

Key takeaways

LNG stands for Liquified Natural Gas. LNG is an alternative maritime fuel. It reduces CO2e emissions by 10% and almost entirely eliminates other air pollutants.

CMA-CGM is the major carrier betting on this technology.

LNG remains a fossil fuel, so it is a transitional fuel.

In order to achieve a more significant reduction of 25%, CMA uses a mix of LNG and Biogas. This way their fuel is partly fossil based and partly derived form sustainable bioresources.

LNG is available on all CMA trades, with no operational constraints thanks to the Book And Claim Scheme.

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OVRSEA does not profit from its green offers, and provides them at cost price.

Going Further

It's important to understand the differences between Natural Gas, Biogas/Biomethane, LNG (Liquefied Natural Gas) and Bio-LNG.

Natural Gas is a fossil fuel energy source, mostly methane.

⚠️ The term “natural” is misleading since it is far from being renewable: it had been formed over millions of years underground.

Biogas/Biomethane is methane produced from organic waste, hence renewable.

LNG is the liquid state of Natural Gas, used as a greener version of conventional marine fuels but is still based on fossil resources.

Bio-LNG is the renewable version of LNG, produced from Biomethane. Bio-LNG is one the most promising sustainable alternative fuel to decarbonize maritime freight.

LNG (Liquified Natural Gas)

LNG is the liquid state of natural gas (fossil), mostly methane, when cooled to about -162 degrees Celsius. At this temperature the volume dramatically reduces to a 1/600th of its original value and enable better transportation and storage. LNG significantly reduces emissions compared to traditional marine fuels. It also cut sulfur emissions by 100%, particulate matter emissions by 85-95%, and nitrogen oxide emissions by 85-90%. However, while it emits 10-25% less CO2 than other fossil fuels, it's not a zero-carbon solution.

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If you had a standard-sized household balloon filled with natural gas, it would contain enough energy to heat a small pot of water. In contrast, the same volume of LNG (when reverted to its gaseous state) could heat an entire bathtub of water!

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The adoption of LNG necessitates substantial investments, such as new ship engines and cooled tank, as well as new bunkering facilities. These upfront costs can be a barrier.

Biogas/Biomethane

Biogas, a sustainable energy source, is produced from organic materials such as agricultural waste, manure, and sewage. This process yields a gas mixture rich in methane. When purified, this becomes Biomethane, suitable for various applications including power generation, heating, and as a vehicle fuel. Biomethane, in its renewable nature, significantly reduces greenhouse gas emissions.

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By transforming half of its household waste into energy, France could generate 5 to 9 Terawatt-hours (TWh) yearly. This amount is enough to power the import of 2 million shipping containers from Asia, a significant portion considering France's annual total of 5 million container imports and exports.

Bio-LNG

Bio-LNG is LNG made out of Biomethane. Bio-LNG leverages the existing LNG infrastructure, making it a practical and scalable green fuel option. Unlike LNG, which is a fossil fuel, Bio-LNG has the potential to significantly contribute to the reduction of the maritime industry's carbon footprint.

Going further

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LNG is nothing more than a first step While LNG is cleaner burning than other fossil fuels, it's still a finite resource, and its extraction and use continue to contribute to greenhouse gas emissions. A move towards LNG could be seen as a stepping stone towards a lower carbon maritime industry, but it's not a complete solution in the fight against climate change.

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Emission uncertainty There's a debate on how much LNG reduces emissions in shipping. The reduction varies based on how natural gas is extracted and the amount of methane leakage : when methane escapes into the atmosphere from pipelines or equipment. It's a concern because methane is a potent greenhouse gas, contributing significantly to climate change. Also, the impact of LNG on emissions changes depending on the time period considered, since methane doesn't last as long in the atmosphere as CO2. Read more about on the Academy page on the main greenhouse gases.

OVRSEA’s offer

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OVRSEA LNG + Biogas

The reduction in emissions offered by OVRSEA is achieved through mixing LNG (-10%) and Biogas (-15%), achieving a total of 25% emissions reduction. Carrier : CMA-CGM

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Well done! You know all about LNG! 💪 Keep on learning on alternative fuels 🗺️ Go back to the Academy