Natural gas and propane are emerging as fuels of choice for shipping companies seeking to slash their carbon footprint. In terms of tonnage, more than 25% of the ships on order will run on LNG or LPG, highlighting operators’ efforts to meet clean-air standards. Global regulators have mandated the shipping industry to cut greenhouse-gas emissions by 50% in 2050 from 2008 levels. This mandate triggered a quest from the industry players to develop new types of engines and cleaner fuels.
About 27% of the ships on order in terms of tonnage will run on alternative fuels, an industry survey showed. This highlights that cleaner fuels are gaining traction, led by LNG and LPG. Ship operators are facing calls to take measures to protect the environment. The shipping industry accounted for 2.5% of total global carbon emissions, roughly equal to the carbon emitted by Germany.
The survey found that 227 LNG-fueled vessels would enter services in the next couple of years. That excludes some LNG tankers that tap their own cargo as fuel. Currently, more than 202 LNG-fueled ships are active. There is only one LPG-fueled ship on the water right now. However, 37 vessels are on order, and 11 ships are being retrofitted to run on propane.
Amazon and Walmart, significant maritime shipping customers, are now requiring proof that their goods are transported by ships running on clean fuel as they look to cut their carbon footprint. Lenders are also avoiding funding fleets that emit high volumes of climate-warming gasses.
