A switch to liquefied natural gas power could potentially save 45% on total vessel operational costs over a 20-year period compared with standard heavy fuel oil, according to a new study by classification society DNV.

The report focuses on the economic and environmental benefits of LNG as an alternative fuel for shipping and comes just as several of the major European class societies have begun to publicly push the concept of a fuel switch, particularly in the shortsea sector. According to the DNV study, LNG is now a commercially viable fuel for shipping and offers the prospect of 25% reductions in CO2, a complete elimination of sulphur emissions and close to 90% reduction in NOx emissions.

According to the DNV study, a shortsea vessel operating in the Baltic sea would incur an additional $30m in operating costs over a 20-year period to comply with these new regulations. A switch to LNG, however, would offer a 45% reduction on this figure.

The DNV report will be produced as a white paper and its focus on the Baltic Sea and shortsea shipping is likely to draw some interest from EU governments and the European Commission.

"Norway already has 19-20 filling stations along the coast and there are some coming along the southern European coast - that is the easiest way to start it". "I honestly believe that the age of LNG is here and shortsea shipping is the most obvious place to start."

Source : Lloyd's List