In the UK, a new analysis by SEA-LNG shows that LNG dual-fuel vessels provide the lowest-cost compliance with upcoming IMO and EU decarbonization regulations, potentially saving operators $5–17 million annually compared to methanol and ammonia. The findings are based on container fleets operating between Rotterdam and Singapore, a key trade route subject to stringent emissions limits starting in 2025.
The study evaluates compliance costs for LNG, methanol, and ammonia dual-fuel engines against traditional very low sulphur fuel oil. LNG’s lower greenhouse gas emissions and ability to meet FuelEU Maritime standards until 2039 without costly green fuel upgrades make it the most viable option. Ammonia and methanol, while promising, require significant investment in expensive bio or e-fuel versions to comply with regulations.
The analysis underscores the impact of regulations like the International Maritime Organization’s Carbon Intensity Index and the EU’s Emissions Trading System, which are driving up operational costs but incentivizing greener technologies. SEA-LNG predicts that LNG will dominate the compliance landscape due to its cost advantages and established supply chains, while high FuelEU Maritime penalties will spur demand for scalable green fuels.
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Tags: LNG, SEA-LNG, UK
Category: Sustainable Marine Fuels
