Shell Marine recently released its latest paper: “From compliance to competitive edge: The case for the methane pathway”.
The paper outlines why the methane pathway is a commercially viable and scalable way to help the industry lower greenhouse gas (GHG) fuel intensity and meet compliance targets.
The lower-emission fuel pathway begins with LNG, advances through the growing adoption of bio-LNG, and is poised to incorporate synthetic fuels (e-LNG) once they are commercially viable. LNG is the most widely adopted alternative marine fuel, backed by established global infrastructure and decades of experience.
The launch took place during a webinar hosted by Shell Marine on September 4, featuring Alexandra Ebbinghaus, General Manager for Decarbonisation, Shell Marine; Marie-Caroline Laurent, Group Senior Vice President, MSC Mediterranean Shipping Company; Stephen Brown, Technology Manager, Shell Shipping & Maritime and Panos Mitrou, Chairman of Methane Abatement in Maritime Innovation Initiative (MAMII).
Key insights from the paper include:
- The methane pathway is a valid route to net zero: start with LNG and blend bio-LNG, and, in the future, synthetic LNG, in any proportion to meet voluntary or regulatory carbon intensity targets.
- LNG emits fewer greenhouse gases on a life cycle basis compared to fuel oil. Its well-to-wake (WtW) emissions are decreasing over time as upstream and downstream methane emissions are reduced and operational efficiencies improve.
- Biomethane is available via a mature and commercially viable process, and it is increasingly being adopted across sectors as a renewable fuel. Liquefied biomethane, such as bio-LNG, is fully fungible with LNG and can be used in LNG dual-fuelled ships without retrofitting.
- The expanding global LNG bunkering network and the growing production of biomethane from organic waste and residues make the methane pathway viable and scalable.
- Clear guidelines and policy support are needed to unlock the full potential of the methane pathway.
Shell welcomes the IMO’s plan to set mid-term measures. The IMO has set ambitious reduction targets post-2030 that could drive earlier demand for more bio and synthetic fuels. LNG continues to play a role, and these measures could incentivize an earlier transition from conventional LNG to bio-LNG, which is already available today, and help propel synthetic LNG development. Furthermore, bio and synthetic LNG can be supplied by existing gas and LNG infrastructure, offering a scalable decarbonization pathway.
Source: Shell Marine
