The shale gas revolution is creating a new kind of 'peak oil'

The brand new Viking Line cruise ferry Viking Grace is fuelled by liquefied natural gas, meaning that sulphur oxide emissions will be almost zero, and nitrogen oxide emissions will be at least 80 per cent below the International Maritime Organization’s (IMO) current stipulated level. Furthermore, there is a reduction of particulate emissions of more than 90 per cent compared to the emissions from conventional diesel engines, while carbon dioxide emissions are also 20-30 per cent lower

“LNG can provide great advantages for our commercial customers as a future energy solution in transportation”
Marvin Odum,  President of Shell Oil Company 



The fast growing supply of inexpensive and environment-friendly natural gas (including shale gas and LNG) is rapidly creating a new kind of "peak oil". Energy giant BP is predicting that the demand for oil will slow down to just 0,8% a year up to 2030, only half the projected total worldwide energy demand growth rate. And there are experts who think that the switch to plentiful natural gas will cut crude oil's supremacy even more. 

Oil is already being priced out of power generation and industry, and the same is expected to happen in the transport sector: 

Trains, ships, and even aircraft are all potential targets, too. Buses powered by compressed natural gas (CNG) – LNG’s less potent older brother – already ply the streets of Dallas and other cities. Rotterdam and Singapore have both outlined plans to become a hub for LNG-powered shipping.

There’s plenty to aim at here. International shipping and aviation fuel plus road freight will account for about 15 million barrels a day of oil demand by 2035, according to the International Energy Agency (IEA). That is a quarter of the projected 60-million-barrel daily oil-for-transport pot.

LNG-powered ships are already a reality, even though the fleet is modest for now. A report by ship classifiers Det Norske Veritas last year predicted that 30 per cent of new vessels will be LNG-powered by 2020. Tankers that carry LNG are an obvious early target. Another classifier, Lloyd’s Register, said the use of LNG as a fuel will pick up from 2019 and could be as much as 8 per cent of global bunker fuel demand before 2025.

Airlines have yet to crack the LNG nut, but the first commercial gas-powered civil aircraft flight left Doha for London on Jan. 9 this year, fuelled by another potential gas-to-transport game-changer – jet fuel made from gas.

Read the  entire article here

Another benefit of the shale gas revolution: A bright and clean future for shipping

The  M/S Viking Grace - to be delivered in January 2013 from the STX  Finland Turky shipyard - will be the largest passenger ferry to operate on liquefied natural gas (LNG), making it the most environmentally sound and energy efficient large passenger vessel in the industry to date. 

Two years ago, the world´s largest ship engine builder Wärtsilä´s Jaakko Eskola predicted a bright future for gas powered ships: 

The number of ships powered by liquefied natural gas may jump 10-fold within five years as anti-pollution rules force owners to switch to the cleaner- burning fuel, the industry’s biggest engine maker said.

“LNG is the future for shipping,” Jaakko Eskola, head of ship power at Helsinki-based Waertsilae Oyj, said by phone on Nov. 12 from Shanghai. Between 800 and 1,000 vessels may use the fuel by 2015, up from about 100 today, he said.

The recent upsurge in the number of LNG ship projects proves that Eskola was right:

“Increasing focus on LNG as a clean and cost effective ship fuel has brought forward initiatives throughout the shipping industry, preparing the ground for a more rapid introduction of LNG as fuel for ships in all segments,” said Mr. Remi Eriksen, COO of DNV Asia Pacific & Middle East. “We believe 500 LNG fuelled ships will be on order by 2015, several thousands by 2020,” he said.

“From a slow start, the interest in LNG as fuel is now very much on the increase. We see studies and projects initiated among national governments, major ship yards and ship owners. Key players throughout the shipping industry are assessing the benefits and risks of going for LNG fuelled vessels, either as conversions or new buildings. This greater interest is creating a momentum that in itself increases the speed in which LNG will be introduced to all segments of shipping.”

The fast growth of the LNG power sector has surprised analysts: 

Accelerating growth is what you would expect under these circumstances. What surprised us is the rate,” Tom Campbell, LNG-fuel analyst at Zeus,said. “High oil prices, impending emissions regulations and technical advancements are propelling the market faster than we expected.”

A key factor is International Maritime Organization Tier III emissions standards, which are slated to take effect in 2015-2016. The regulations require operators to reduce sulfur and nitrogen oxide emissions. For existing ships, after-exhaust treatment is proving more popular, but for newbuilds, operators are taking advantage of LNG’s unique properties.

“As LNG is better understood, architects are able to design ships specifically for LNG storage and propulsion,” Campbell said. “Firms such as Wärtsilä now offer integrated onboard fuel delivery systems and power units for shipbuilders.“

Zeus’ survey finds that LNG usage is growing beyond coastal ferries in Europe and offshore service vessels for the oil and gas industry, to large cruise ferries and container vessels while expanding geographically from Europe to North America and Asia. Currently projects underway in Belgium, Sweden, Finland, South Korea, Singapore, Japan and elsewhere have made efforts to offer LNG bunkering and incentives to support LNG-fueled marine technology.

LNG powered ships should be of particular interest for countries like the US and Canada, with their huge resources of shale gas: 

Taking North America as an example, the US and Canada are replete with very competitively priced gas as a result of its recent discoveries of shale and other unconventional gas. Powering North American fleets of OSVs, regional ferries, fishing boats, Great Lakers and inland waterway vessels with gas makes eminent good sense from a commercial point of view. 

The fast growth of clean gas power in ships is another testimony to the benefits of the shale gas revolution, which is paving the way for great energy solutions for all kinds of future transportation problems. And all this is taking place without any senseless and costly government or EU regulations! 

(image by STX Finland)

Waiting for the "modern world´s first 100 per cent fuel free sailing cargo ship"

The World Maritime News tells us that "Development is underway to design the modern world’s first 100 per cent fossil fuel free sailing cargo ships":

With rising fossil fuel prices and the global challenge of reducing greenhouse gas emissions, this project is set to change the shipping industry by providing efficient and affordable low-carbon shipping. The project combines proven technology, using the state of the art dyna-rig sail propulsion system with an off the shelf Rolls-Royce engine powered by waste derived liquid biomethane (liquid gas).

The ships are being developed by B9 Shipping, part of the B9 Energy group of companies, which has started work on a full-scale demonstration vessel validating the engineering and economic assumptions of the initial vessel design.

The fundamental testing programme is being conducted at the University of Southampton’s Wolfson Unit for Marine Technology and Industrial Aerodynamics (WUMTIA), which has provided innovative marine technology and industrial aerodynamics expertise for over 40 years to a world-wide customer base.

Diane Gilpin, Director of B9 Shipping, says: “The shipping sector is a highly complex, interconnected system and our task has been to develop relationships with key players across the industry. Having worked previously with WUMTIA, I believe this collaboration will enable a robust, commercially and technically viable solution to be ready for scale once the engineering is proven.”

Wouldn´t it be nice to return to the age of great commercial tall ships? Why not, but before all sail enthusiasts are carried away by the promises, they should understand that the essential piece of information here is: "once the engineering is proven". So far none of the new "revolutionary" cargo sail ship technologies have been even remotely successful, and it is doubtful whether this one will be, either. 

And looking at the picture, one might be entitled to ask, where the inventors of the new "fossil fuel free sailing cargo ship" are planning to put the containers, which are the backbone of modern cargo shipping?

British admirals to command wind turbines instead of ships



Admiral  Nelson´s successors  will be in charge of wind turbines instead of ships. The Cameron government´s cuts could reduce the size of the Royal Navy to it´s smallest level since the time of Nelson.


David Cameron´s "the greenest government ever" keeps on subsidising unprofitable wind power projects while at the same time endangering British trade interests ,which are increasingly dependent on keeping international sea lanes safe and open. British admirals, commanders and captains are now expected to command wind turbines instead of ships as the Royal Navy is facing extensive cutbacks:

British, Dutch and Danish Royal Navy are just some places where the traditional military training programs contain many of the key criteria an offshore employer seeks. Thousands of hours of offshore work experience, check. Educated to a good standard of higher learning maybe even with specific electrical engineering skills sets, check. A built in sense of teamwork and respect for authority and command, check.

These men and women have worked to deadlines for most of theiradult lives. They have been in harsh weather conditions and very likely been away from home comforts and their families for weeks at a time. They have worked in tight spaces. They are brave and work with a purpose.
So it is no surprise to hear and read that wind turbine OEM’s on both sides of the Atlantic such as Gamesa, are actively employing ex-military. Nor should it be a shock to learn that the UK national skills academy power sector is actively seeking out connections between the offshore wind community and a variety of military institutions

Read the entire article here

While the heavily subsidised wind power industry is poaching on the Royal Navy, both trade and security experts say that both the ships and the officers would be sorely needed in the fight against piracy and terrorism:

The Centre for Economics and Business Research think-tank has predicted that the amount of international trade Britain conducts by sea could soar as we forge stronger links with emerging markets.
It believes sea trade will grow  in value by more than six times over the next 20 years – making Britain a ‘maritime nation’  once again.
But industry experts warn this seafaring renaissance will only be possible if the Royal Navy is strong enough to keep shipping lanes open and fight piracy  and terrorism.
International trade is vital to the health of the UK economy, with ministers pinning their hopes on exports to drive the current recovery.
But pirate attacks rose sharply to 266 incidents in the first half of this year, up from 196 in the same period of 2010, according to the International Maritime Bureau.
The hot-spot for pirates is not the Caribbean but the Arabian Sea, where most attacks by Somali brigands take place.
At the end of June, Somali pirates were holding 420 crew members across 20 vessels, and demanding millions of pounds in ransoms for their release.
Pottengal Mukundan, the IMB’s director, said these groups are attacking more ships than ever before – and taking even more risks.
‘This June, for the first time, pirates fired on ships in rough seas in the Indian Ocean during the monsoon season,’ he said.
‘In the past they would have stayed away in such difficult conditions.’
According to the Chamber of Shipping, 95pc of UK trade by volume – and 90pc by value – is carried over the waves.
‘We are highly dependent on trade by sea,’ said John Dowden, a senior manager at the trade association.
‘We need a strong Navy to protect our interests. Whether we have enough naval ships to do that is a serious concern.’
---
But the Royal United Services Institute warned that the Navy is ‘dangerously weak’, and international trade by sea was at risk ‘unless the future fleet is restored and adequately sized’.
The Navy, along with the other armed forces, is facing cutbacks following the Government’s Strategic Defence and Security Review last autumn – including the scrapping of the iconic Ark Royal aircraft carrier and the loss of 5,000 jobs. In addition, the historic Britannia Royal Naval College in Dartmouth, Devon, which has trained officers since 1905, may face closure.
Ultimately, the swingeing cuts could reduce the service to its smallest level since the time of Admiral Nelson.
Dr Lee Willett, a research fellow at RUSI, cautioned: ‘The role of the Royal Navy has been forgotten about because the trade keeps coming.’
In a recent report, Vice Admiral Sir Jeremy Blackham, an associate fellow at the institute, said: ‘Any trading nation has a critical interest in the secure use of the seas and the preservation of good order at sea.
‘The dependence of the West, but especially of Britain, on use  of the sea for its survival and  prosperity is a geopolitical fact  of life.’

Read the entire article here

PS

This is another sad example of what happens when politicians close their eyes to the real world and instead base their actions on politically correct hoax "science". And there is a clear danger that,due to defense cuts, there will be a similar development in the US

Kite propulsion for cargo ships - could save fuel and reduce real pollution

This blog has - for obvious reasons - been critical of most "green" solutions for transportation, mainly because they are expensive and they do not deliver what they promise to deliver (e.g. battery or solar powered cars). However, if an invention actually works, saves fuel and is good for the environment
- meaning that it reduces real pollution (not CO2, which is not a pollutant) - then it deserves to be looked into.

This German invention, which promises to reduce real pollution and fuel costs for ships, could very well be a success in the near future:

In another video the founder of the SkySails system, Stephen Wrage - not surprisingly - mentions the shipping industry´s alleged contribution to "global warming". However, that should be seen more as a sales argument in line with the current climate orthodoxy. It does not change the fact that his invention actually could be useful in the real world of  future shipping.