The Role of LNG in the Transition Toward Low- and Zero-Carbon Shipping

Due to its much lower air pollution and potential greenhouse gas (GHG) emissions benefits, liquefied natural gas (LNG) is frequently discussed as a fuel pathway towards greener maritime transport. While LNG’s air quality improvements are undeniable, there is debate within the sector as to what exten...

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Main Authors:	Englert, Dominik, Losos, Andrew, Raucci, Carlo, Smith, Tristan
Format:	Report
Published:	World Bank, Washington, DC 2021
Subjects:	DECARBONIZING MARITIME TRANSPORT BUNKER FUEL LIQUEFIED NATURAL GAS LNG GREENHOUSE GAS EMISSIONS LIQUEFIED BIOMETHANE FUEL LIQUEFIED SYNTHETIC METHANE FUEL INTERNATIONAL SHIPPING AIR POLLUTION
Online Access:	http://documents.worldbank.org/curated/en/852911617998835634/The-Role-of-LNG-in-the-Transition-Toward-Low-and-Zero-Carbon-Shipping http://hdl.handle.net/10986/35437

id	okr-10986-35437
recordtype	oai_dc
spelling	okr-10986-354372021-04-23T18:28:21Z The Role of LNG in the Transition Toward Low- and Zero-Carbon Shipping Englert, Dominik Losos, Andrew Raucci, Carlo Smith, Tristan DECARBONIZING MARITIME TRANSPORT BUNKER FUEL LIQUEFIED NATURAL GAS LNG GREENHOUSE GAS EMISSIONS LIQUEFIED BIOMETHANE FUEL LIQUEFIED SYNTHETIC METHANE FUEL INTERNATIONAL SHIPPING AIR POLLUTION Due to its much lower air pollution and potential greenhouse gas (GHG) emissions benefits, liquefied natural gas (LNG) is frequently discussed as a fuel pathway towards greener maritime transport. While LNG’s air quality improvements are undeniable, there is debate within the sector as to what extent LNG may be able to contribute to decarbonizing shipping. This report, “The Role of LNG in the Transition Toward Low- and Zero-Carbon Shipping,” considers the potential of LNG to play either a transitional role, in which existing LNG infrastructure and vessels could continue to be used with compatible zero-carbon bunker fuels after 2030, or a temporary one, in which LNG would be rapidly supplanted by zero-carbon alternatives from 2030. Over concerns about methane leakage, which could diminish or even offset any GHG benefits associated with LNG, and additional capital expenditures, the risk of stranded assets as well as a technology lock-in, the report concludes that LNG is unlikely to play a significant role in decarbonizing maritime transport. Instead, the research finds that LNG is likely to only be used in niche shipping applications or in its non-liquefied form as a feedstock to kickstart the production of zero-carbon bunker fuels when used in conjunction with carbon capture and storage technology. The research further suggests that new public policy in support of LNG as a bunker fuel should be avoided, existing policy support should be reconsidered, and methane emissions should be regulated. 2021-04-14T18:51:50Z 2021-04-14T18:51:50Z 2021-04-15 Report http://documents.worldbank.org/curated/en/852911617998835634/The-Role-of-LNG-in-the-Transition-Toward-Low-and-Zero-Carbon-Shipping http://hdl.handle.net/10986/35437 CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo World Bank World Bank, Washington, DC Publications & Research :: Working Paper Publications & Research
repository_type	Digital Repository
institution_category	Foreign Institution
institution	Digital Repositories
building	World Bank Open Knowledge Repository
collection	World Bank
topic	DECARBONIZING MARITIME TRANSPORT BUNKER FUEL LIQUEFIED NATURAL GAS LNG GREENHOUSE GAS EMISSIONS LIQUEFIED BIOMETHANE FUEL LIQUEFIED SYNTHETIC METHANE FUEL INTERNATIONAL SHIPPING AIR POLLUTION
spellingShingle	DECARBONIZING MARITIME TRANSPORT BUNKER FUEL LIQUEFIED NATURAL GAS LNG GREENHOUSE GAS EMISSIONS LIQUEFIED BIOMETHANE FUEL LIQUEFIED SYNTHETIC METHANE FUEL INTERNATIONAL SHIPPING AIR POLLUTION Englert, Dominik Losos, Andrew Raucci, Carlo Smith, Tristan The Role of LNG in the Transition Toward Low- and Zero-Carbon Shipping
description	Due to its much lower air pollution and potential greenhouse gas (GHG) emissions benefits, liquefied natural gas (LNG) is frequently discussed as a fuel pathway towards greener maritime transport. While LNG’s air quality improvements are undeniable, there is debate within the sector as to what extent LNG may be able to contribute to decarbonizing shipping. This report, “The Role of LNG in the Transition Toward Low- and Zero-Carbon Shipping,” considers the potential of LNG to play either a transitional role, in which existing LNG infrastructure and vessels could continue to be used with compatible zero-carbon bunker fuels after 2030, or a temporary one, in which LNG would be rapidly supplanted by zero-carbon alternatives from 2030. Over concerns about methane leakage, which could diminish or even offset any GHG benefits associated with LNG, and additional capital expenditures, the risk of stranded assets as well as a technology lock-in, the report concludes that LNG is unlikely to play a significant role in decarbonizing maritime transport. Instead, the research finds that LNG is likely to only be used in niche shipping applications or in its non-liquefied form as a feedstock to kickstart the production of zero-carbon bunker fuels when used in conjunction with carbon capture and storage technology. The research further suggests that new public policy in support of LNG as a bunker fuel should be avoided, existing policy support should be reconsidered, and methane emissions should be regulated.
format	Report
author	Englert, Dominik Losos, Andrew Raucci, Carlo Smith, Tristan
author_facet	Englert, Dominik Losos, Andrew Raucci, Carlo Smith, Tristan
author_sort	Englert, Dominik
title	The Role of LNG in the Transition Toward Low- and Zero-Carbon Shipping
title_short	The Role of LNG in the Transition Toward Low- and Zero-Carbon Shipping
title_full	The Role of LNG in the Transition Toward Low- and Zero-Carbon Shipping
title_fullStr	The Role of LNG in the Transition Toward Low- and Zero-Carbon Shipping
title_full_unstemmed	The Role of LNG in the Transition Toward Low- and Zero-Carbon Shipping
title_sort	role of lng in the transition toward low- and zero-carbon shipping
publisher	World Bank, Washington, DC
publishDate	2021
url	http://documents.worldbank.org/curated/en/852911617998835634/The-Role-of-LNG-in-the-Transition-Toward-Low-and-Zero-Carbon-Shipping http://hdl.handle.net/10986/35437
_version_	1764483032544182272

The Role of LNG in the Transition Toward Low- and Zero-Carbon Shipping

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