Shipping is on the verge of a fueling transformation… and our mission is to help facilitate and accelerate this evolution. In order to understand shipping emissions, it helps to think of the magnitude of the maritime industry, and how much we rely on it. About ninety percent of all the goods traded globally spend some of their transit time on a ship.
In order to meet our needs, almost a hundred thousand ships are operating around the globe, 24/7, 365 days a year. These ships still primarily use Heavy Fuel Oil (ie. the dirtiest/cheapest fuel available) with SOx, NOx and particulate matter emissions that are linked to tens of thousands of deaths per year in port areas. The total CO2 emissions from shipping is equal to that of the 6th largest nations.
The shipping industry is facing increasing regional and global regulation designed to drastically limit sulfur oxide and nitrogen oxide emissions. With the new International Maritime Organization (IMO) sulfur emissions limit in effect as of January 1, 2015 in North America and Northern Europe, ship owners operating within the Emissions Control Area (ECA) face a challenging set of options for compliance:
1. Continue operating as usual but burn ultra-low sulfur (but high cost) diesel
2. Install a ‘scrubber’ to capture sulfur emissions & burn low cost heavy fuel oil
3. Convert to a dual-fuel engine and burn low cost and clean burning Liquefied Natural Gas (LNG)
CME believes the most viable and economic compliance alternative for ship owners and the environment is to convert vessels to be able to burn LNG as a fuel. Using LNG to fuel a ship reduces CO2 emissions by 20-25%, NOX emissions by 85-90% and SOx and particulates by ~100%. Achieving a 10% LNG share of total fuel burned in US waters would reduce NOx emissions by the equivalent of 15 million cars being taken off the road.
Natural gas is abundant in North America. By converting to dual-fuel, ship owners will not only be able to burn the cleanest fuel, but also less expensive fuel – making their vessels the most competitive in the global fleet.
Please use our calculator for a quick economic look at how a ship is impacted by the new regulations, and the savings that could be created by switching to LNG fueling.