Shippers focus on LNG, biofuels, methanol to meet emissions targets

Shippers focus on LNG, biofuels, methanol to meet emissions targets

Shipping and commodities firms will commission more ships partly powered by liquefied natural gas (LNG) next year while ramping up trials for biofuel bunkering as they seek to cut emissions from ship operations, senior executives said this week.

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The shipping industry is seeking to reduce its reliance on oil as it tries to meet carbon emission reduction targets set out by the U.N.'s International Maritime Organization.

These include the shipping industry cutting carbon emissions by 40 per cent from 2008 levels by 2030, and overall greenhouse gas (GHG) emissions by 50 per cent by 2050.

LNG, methanol and biofuel are among the more popular alternative fuel options, industry executives said at the Singapore International Bunkering Conference and Exhibition (SIBCON) 2022 that ended on Thursday.

Several companies, including shipper Mitsui O.S.K and mining firms Rio Tinto and BHP, are set to receive more LNG bunker vessels in 2023 that will help shave off some emissions on voyages.

Rio Tinto will bring nine LNG dual-fuelled Newcastlemax vessels into its portfolio, with the first delivery expected from the first half of next year, said Laure Baratgin, head of commercial operations at Rio Tinto.

The company has also started a one-year biofuel trial as it aims to cut emissions from operations by 40 per cent by 2025.

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