Shell takes lead in use of LNG, electric vessels as it navigates to shipping’s net-zero goal

Speaking at a Singapore conference organised by professional services firm Moore Stephens recently, she noted that oil and gas will continue to play a crucial role in supplying the world with energy for decades to come.

“As crucial as decarbonising shipping is, maintaining energy security is also of paramount importance. It is critical that we do not dismantle any current energy system any faster than we can build the low and zero-carbon network of the future,” she said. However, Ms Trauth noted that shipowners and liners can take immediate action to cut emissions by improving the energy efficiency of their ships using existing infrastructure, technology and lower-carbon fuels.

Shell will also explore the use of LNG as an alternative fuel for its fleet. LNG is considered a cleaner alternative to traditional fossil fuels as it emits less carbon and produces lower levels of air pollutants. 

“As the largest LNG trader in the world, Shell has developed a large LNG bunkering network across 19 locations. In Singapore, Shell has a physical presence through FueLNG, a joint venture with offshore and marine firm Seatrium, which supplies LNG bunkering.

Other existing solutions that can easily be deployed today include biofuels like biodiesel, which can be mixed with existing fuels to reduce a shipowner’s GHG emissions, said Ms Trauth. “The industry should invest in fuel and tech solutions that are available today….

Ms Trauth said Shell is now working with various shipyards on a net-zero vessel design which will give shipowners “extensive flexibility to integrate future fuels and fuel technology on board”, including installing an electric grid system on the vessel. Shell is leading a consortium of partners to trial solid fuel cells on board an LNG carrier, with the process expected to start in 2025, Ms Trauth said.

She added that in Singapore, Shell will be starting a trial involving hydrogen fuel cells in collaboration with players like Penguin International and Seatrium.

“By testing, learning and deploying these enabling technologies, we can start to overcome some of the technical and commercial challenges of decarbonising in the long run.”