LNG-fueled marine vessels: A massive opportunity for our climate and economy

While British Columbia (BC) is grappling with the challenge of reducing its domestic greenhouse gas emissions (GHGs) by 40% by 2030, a huge source of emissions and potential for global GHG reductions floats off its shores.

Marine shipping between BC and ports in Asia is a massive source of GHGs. In fact, the GHGs associated with the fuel consumption along the entire journeys of ships into and out of Vancouver’s ports (the second largest port in North America) are larger than British Columbia’s entire annual emissions. BC can help reduce these emissions while offering new opportunities for growth - though a new tack would need to be taken in its approach to achieve its GHG targets.

In 2017, the International Maritime Organization (IMO) – the global body that regulates international marine shipping – set ambitious pollution caps on the sulfur content of fuels by 2020. Then, later that year, the IMO signaled that it will target a 50% reduction in GHG emissions in the global shipping industry by 2050.

Both of these policies matter a lot. International shipping doesn’t fall in any one country’s GHG emissions inventory though, if marine shipping was a country it’d be the sixth-largest global emitter. The IMO’s policies are a critical step to reduce both GHGs and criteria air contaminants like sulfur, NOx and particulate matter.

The pathways for international shipping to comply with ambitious pollution reduction are still coming into focus. To achieve the sulfur cap, shipping companies have essentially three options: i) use ultra-low sulfur diesel fuel instead of marine fuels, ii) install pollution scrubbers on ships or iii) convert ships to liquefied natural gas propulsion (LNG). LNG is the only option that reduces sulfur, other criteria air contaminants and GHGs.

BC has other environmental advantages. Analysis conducted by UBC concluded that BC’s LNG achieved 26% more GHG emissions reductions than the global average. Why? Because BC’s natural gas sector is less carbon intensive that other countries that produce LNG. Hydroelectricity, cleaner reserves of natural gas, a colder climate, and stricter methane regulations on the gas sector all work to lower the carbon intensity of BC’s LNG.

This means that if we choose to forego the opportunity to supply LNG as a marine fuel, the result would be otherwise higher global GHG emissions. All in, the lifecycle GHG reductions from LNG powered vessels in the province could reduce anywhere from 1.5 to 10 million tonnes of GHGs. This is the largest immediate opportunity for BC to meaningfully reduce global GHGs.

FortisBC is already fueling six vessels with LNG including four BC Ferries. Not only are they less polluting, they are quieter and the risk of fuel spills is significantly reduced. FortisBC pioneered an innovative fueling method where LNG tankers are fueled at its Tilbury LNG facility and roll on and fuel from the vehicle deck. The Tilbury LNG facility is powered with BC's low-emissions electricity and is one of the cleanest LNG facilities in the world.

It is for these reasons why the Provincial Government announced that it was supporting the development of an LNG bunkering in BC. At full build out, LNG for marine fuel could stimulate close to $1 billion in GDP and over three thousand jobs in the province - all while making meaningful progress toward a clean international shipping sector.