Speaking at the Singapore Maritime Technology Conference (SMTC) on Thursday Shell’s Global Head of Shipping Grahaeme Henderson has strongly defended the use of LNG as a marine fuel to reduce emissions today in the wake of a critical report released by the World Bank.
Henderson directly addressed The World Bank report which stated that new public policy support for LNG as a bunker fuel should be avoided.
Shell has been a strong proponent of LNG including for newbuildings and 50% of its chartered in fleet will be powered by LNG by 2023.
While the The World Bank was concerned investment in LNG would turn attention away from developing zero carbon fuels such as ammonia and hydrogen, Hendeson stated, “The sector cannot afford to simply wait for alternative fuels.”
He quoted a study by Sphera, also released last week, that LNG reduces greenhouse gases by up to 23% on a Well-to-Wake basis and up to 30% on a Tank-to-Wake basis compared with current oil-based marine fuels. Meanwhile SOx emissions are nil and NOx greatly reduced.