New UCL report claims $850bn of LNG-capable tonnage risks being stranded by 2030

UCL Energy Institute is a very influential research group. The UCL part is University College London. Their investigation of LNG-fueled vessels indicates that these ships are not on the best path to reduce carbon emissions. Thus, many of them being built now will need to be scrapped early.

A news piece written by the institute indicates as much as $850 billion of shipping may have to be scrapped.

The study could be quite influential. Shipowners have recently been investing in LNG-powered ships to produce reduced emissions now, especially since methane emissions are not being measured as they should. LNG ships emit methane, a worse greenhouse gas than CO2, through slip from the engine and the fuel handling operations. Most ships have not put in place advanced methane recovery systems.

The ships involved are dual-fuel ships that burn both oil and LNG, as well as single-fuel LNG powered ships.

The scientific evidence seems to indicate that LNG power may actually be worse than Low Sulphur Heavy Fuel Oil (LSHFO) when all the lifecycle emissions are analyzed. So the ultimate economic effect of the now LNG builds may turn out to be quite a waste of money.

The full report from the UCL Institute can be read here.

Sam ChambersSeptember 21, 2022

New UCL report claims $850bn of LNG-capable tonnage risks being stranded by 2030 – Splash247

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