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Navigating Cleaner Seas: LNG Leading the Decarbonization of Maritime Fuel

Decarbonization of Maritime Fuels: The Case for LNG

Did you know 80% of the world’s goods move across our oceans? Maritime shipping keeps the global economy afloat, yet it comes at a high environmental cost. Reliant on heavy fuel oils, maritime vessels contribute over 1,000 million tons of CO2 emissions annually—one of the major culprits in our current air pollution crisis. To secure a sustainable future, we must act now and turn to cleaner fuels that can help protect our planet.

LNG is one of the leading maritime fuel solutions that offers a cleaner, more sustainable option for government and privately owned vessels. In this blog, we’ll learn about the challenges with current maritime fuels, provide an introduction to LNG, discuss how TOTE has pioneered cleaner fuels in maritime shipping, and other ways the shipping industry can support a cleaner planet. 

Challenges of Current Maritime Fuels

The environmental impact of traditional maritime fuels is well-documented. Globally, the shipping industry consumes millions of barrels of oil each day making it responsible for 2-3% of the total greenhouse gas emissions. The fossil-based fuels used to power ships, such as heavy fuel oil and marine gas oil combust and release CO2, particulate matter, and nitrogen oxides into the atmosphere. This contributes significantly to climate change we’re facing around the globe. In addition, current maritime fuel contains sulfur at levels that are 2,700 times higher than automotive diesel fuels. This combustion releases toxic sulfur oxides into the air, further contributing to the crisis.

Not only is our environment at risk, but also our health. Today’s maritime fuel poses severe health risks, especially in the areas surrounding busy ports. Health risks include respiratory and cardiovascular diseases, with children and the elderly being particularly vulnerable. Prolonged exposure to pollutants from these fuels can lead to increased hospitalizations and long-term health complications.

Lastly, marine life is also suffering from ocean acidification caused by maritime fuel emissions. Marine biodiversity and coral reefs are being threatened because of their dependency on a healthy ocean for their sustenance and existence. The increase in acidity disrupts the growth of shell-forming organisms, while coral bleaching events are becoming more frequent and severe. This degradation of marine ecosystems has a ripple effect, impacting fisheries, coastal economies, and global biodiversity. 

The International Maritime Organization (IMO) has recognized these challenges and is urging shipbuilders to face them now as upcoming regulations will mandate consequences if not compliant. Later in this blog, we’ll learn about the IMO 2030 agenda which mandates a 40% reduction in carbon emissions levels and puts a cap on sulfur emissions. These regulations are encouraging the U.S. Government and private ship owners to seek out cleaner fuel options to meet new strict standards.

Introduction to Liquefied Natural Gas (LNG) and the Benefits as a Maritime Fuel

LNG is a clean-burning energy source primarily composed of methane. When used as maritime fuel, LNG emits lower levels of carbon dioxide, nitrogen oxides, and sulfur oxides. LNG not only reduces emissions and the environmental footprint of the maritime shipping industry, but also meets the IMO 2030 regulations. While LNG is not a zero-carbon fuel, it significantly reduces greenhouse gas emissions, making it an essential component and stepping stone for the decarbonization of maritime fuels.

Benefits of LNG include:

  • Reducing EEDI rating by 20%
  • 20% less carbon emissions
  • Vessel design compliance with upcoming regulations
  • Reduces NOx emissions by up to 80%
  • Almost eliminates SOx, particulate matter 
  • GHG emissions reduced by up to 23% 
  • Lower cost per ton

Another advantage of LNG is its availability. It is accessible now, and it has a proven track record. On the US East Coast, Cruise lines and RO-RO carriers are increasingly adopting the use of LNG as a marine fuel. LNG bunkering operations are available by barge in the port of Savannah, Jacksonville, Port Canaveral, and Port Everglades. On the West Coast, LNG is available directly from pipelines in the Port of Tacoma and by truck in the Port of LA/LB. 

According to a leading industry group, Sea-LNG, at the end of 2023, there were 469 LNG powered ships with 537 more on order. Det Norske Veritas, a Norwegian company that provides maritime quality assurance and risk management, projects that there will be over 1,000 LNG powered cargo ships and cruise ships traversing the world by the end of 2027. 

While the majority of LNG sold today is a fossil fuel, the reality is that LNG is a fuel in transition that can be produced from agricultural bio-waste and synthetically using clean energy. These alternative production methods significantly reduce greenhouse gas emissions and support a circular economy by repurposing waste materials. As industries and governments collaborate to meet ambitious climate goals, the potential for renewable LNG to emerge as a sustainable energy solution continues to grow.

TOTE Pioneering the Use of LNG 

In 2010, international regulations by the IMO designated the coastlines of the United States as Emissions Control Areas. As new standards were set in motion, rather than doing the bare minimum, TOTE Services took the initiative to set the standard. 

In 2015, TOTE partnered with Jax LNG to build the world’s first LNG-powered container ships and bunker barges. This incredible initiative was groundbreaking, and acted as a pillar of advancement in maritime fuel around the country. Today, these Marlin-class vessels, the Isla Bella and Perla Del Caribe, purpose built for the Puerto Rico trade are the most advanced of its kind.

In 2023, TOTE Services also pioneered the first LNG conversion of two commercial container vessels operated by TOTE Maritime Alaska. These Orca-class vessels are a critical resource to transporting cargo from Tacoma, WA to Anchorage, AK twice a week.  The Midnight Sun and North Star underwent the reconfiguration to this fuel source while continuing operations to support the people of Alaska.

Fast forward to 2024, TOTE Services now manages and crews LNG-bunkering vessels supporting a variety of commercial and privately owned vessels in the southern United States further supporting the transition many shipowners are investing in towards a cleaner industry. Vessels including the Tortuga, Clean Jacksonville, and Clean Canaveral have proven that LNG is a reliable and sustainable fuel option. 

In addition to the work by TOTE Services, TOTE Maritime Alaska and TOTE Maritime Puerto Rico have begun to make huge strides in sustainability efforts. First Coast Terminals, a terminal operator in Jacksonville, FL within the TOTE Group companies, has invested millions in improving the fuel efficiency and reducing emissions with their shoreside fleet outfitted with new hustlers, gensets, reefers, and reefer trailers. On the east coast, TOTE Maritime Puerto Rico updated its fleet to NaturaLINE®, PrimeLINE(R) and Daikan containers and the CoolConnect tracking system from 2019 which reduces carbon dioxide emissions and environmental impact. TOTE Maritime Puerto Rico was also the first carrier in the Puerto Rico trade to utilize NaturaLINE in their reefer fleet.

Learn more about how TOTE Group companies are investing in a cleaner future.

The Role of the International Maritime Organization (IMO) and the 2030 Agenda

The IMO is an agency of the United Nations that oversees maritime transport and sets global standards for maritime shipping. They are responsible for global safety standards and environmental effects. Currently, the IMO is working with member states to support alignment with the 2030 agenda. 

Focusing on sustainable development, IMO 2030 calls for a reduction in carbon emissions by 40%. By 2050 the goal is raised to an ambitious target of 70% reduction on carbon emissions. Ship builders and owners will face harsh penalties if they are not compliant including fines, restricted operations, and even the grounding of ships. 

IMO 2030 is part of a broader global sustainability effort including focusing on climate, life below water, and innovation in the industry. Promoting LNG as a cleaner fuel option is a part of achieving these goals, and the way in which the maritime industry can contribute in reducing environmental impact. 

Additional Ways to Reduce the Maritime Industry’s Carbon Footprint

LNG represents a key solution to decarbonizing maritime transport. However, there are other strategies that can complement this effort. Implementing a combination of these approaches can lead to more sustainable shipping practices for the government and private ship owners:

  • Data-driven vessel performance insights: By utilizing advanced data analytics, ship operators gain real-time insights into vessel performance. This helps optimize routes, improve fuel efficiency, and reduce emissions by identifying areas where energy use can be minimized.
  • Predictive fuel analytics: Powered by machine learning, algorithms can analyze historical and real-time data to forecast fuel consumption patterns. This will enable operators to optimize fuel use, minimize waste, and reduce carbon emissions.
  • Retrofitting existing vessels with carbon emission lowering equipment: Upgrading older ships with the latest emission-reducing technologies, such as exhaust gas cleaning systems and energy-efficient engines. This makes it possible to cut down on pollutants without the need for entirely new vessels.
  • Development of new vessels with sustainability in mind: Eco-friendly vessel designs allow for the incorporation of alternative fuels, energy-efficient engines, and innovative propulsion systems. These vessels are designed to have a smaller carbon footprint from the start.

Support The Continued Growth of LNG as a Maritime Fuel

LNG has proven to be a reliable and effective solution for reducing the environmental impact of maritime operations. Shipping companies can not only meet regulatory standards but also contribute to a healthier planet switching to a clearing fuel. However, widespread adoption of LNG requires collaboration across the industry.

The U.S. government and commercial entities must assess their carbon emissions. If they are falling short of standards, they need to advocate for ports and states to invest in expanding LNG infrastructure. Building a robust LNG network on both coasts will be essential to ensuring a cleaner, more sustainable future of maritime operations. Securing a better world for generations to come, requires us to act together, and act now.

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