A new joint industry project (JIP) signed recently in Singapore between BHP Billiton, Mitsui O.S.K. Lines, Rio Tinto, SDARI, Woodside, and DNV GL, looks to capitalize on LNG opportunity to drive the market development. The JIP is named “Green Corridor” and will assess the commercial potential of LNG-powered vessels in a “green corridor” between Australian and China, culminating in the creation of a next generation Capesize design that will undergo Approval in Principle (AiP) under the new DNV GL rules.
“As we approach the entry into force date for sulfur emissions, we are seeing interest in LNG as a ship fuel start to climb again,” said Morten Lovstad, DNV GL – Maritime Business Director Bulk Carriers. “As one of the largest LNG exporters in the world and with bunkering infrastructure coming online, Australia is well placed to support the bulk trade on the west coast with LNG as fuel. We are confident this project has the potential to deliver a competitive, compliant and safe vessel and the business case to back it up.”
Woodside COO Mike Utsler said: “We recognize that LNG as a transport fuel option presents opportunities, both in a commercial sense and as a low-emissions alternative to other marine fuels. This JIP is bringing together mining companies, a shipowner and supplier, a ship designer and LNG producer and led by DNV GL to explore how we can develop the LNG fueled ‘Green Corridor’. We are this year taking delivery of the first LNG fueled marine support vessel in the Southern Hemisphere and we look forward to the findings from this joint industry project on the potential for LNG fuel use by bulk carriers.”
The JIP has two main objectives – building and assessing the business case of LNG as fuel for Capesize bulkers operating in the trade between Australia-China, and developing an efficient LNG-powered Capesize concept design. These activities will be run together, with the immediate results generated from one project fed into the other.
Source: DNV GL