DNV GL has provided a report for the EU providing recommendations on how to address barriers to the wider adoption of LNG as fuel for shipping, concluding that, from a legal point of view, “There are now no remaining technical showstoppers.”
The company believes that as air emission requirements are becoming more stringent, one possible solution for reduced emissions is to use LNG as fuel, but sees its take-up in Europe as at an early stage.
The report notes two key barriers to increasing the use of LNG as fuel, “The gaps in the legislative or regulatory framework, and the lack of harmonised standards.”
“DNV GL’s assessment of the existing rules, standards and guidelines shows that from a legal point of view, there are no remaining major showstoppers for the use of LNG as fuel - both for seagoing vessels and inland waterway vessels – nor for the deployment of LNG bunker facilities,” said Martin Layfield, global segment leader of the Gas Value Chain, DNV GL – Oil and Gas.
“In November members states will have to submit their national policy frameworks using the report’s recommendations. DNV GL has advised the EU to implement a low/ moderate harmonisation scenario as the most workable policy option which will enable members states to transpose the directive on alternative fuels with a ‘light touch’. This will reduce effort in implementation, delays and administrative burden while still enabling standardisation,” he added.
“The next three decades will see substantial increase in energy demand,” said Liv Hovem, regional manager Continental Europe, North and East Africa for DNV GL – Oil and Gas. “At the same time, a big part of the world expects the energy to be greener, more reliable and more affordable. This is what we refer to as the energy ‘trilemma’.
“Natural gas has a key role to play in the future energy mix and Europe will continue to be a significant import hub for LNG.”