In November 2023 PCF, Oceania and RINA signed an MoU to
collaborate on studies to define the commercial and emissions reduction
benefits their combined concepts could deliver to ship owners and charterers
for the Pilbara to Asia dry-bulk minerals export trade route. The Joint Study
has now been completed.
Study Findings: The findings demonstrate
an accessible and achievable pathway to Net-Zero Emissions for LNG, on a
Well-to-Wake basis, for international shipping on this trade. The study
presents a flexible and commercially attractive IMO compliant marine fuel
strategy to ship owners, operators and charterers amidst competing alternative
fuel. It proposes a ‘Green Corridor’ marine fuels solution for the Western
Australia to China bulk minerals export trade route.
Port Hedland (Australia), 4 June, 2024 -
Western Australia is the largest producer of iron ore in the world, with
current production of over 850 million tonnes per annum, the majority of which
is exported from the Pilbara region of Western Australia. The Joint Study
addresses a set of factors which together constitute a pathway to achieving
net-zero emissions for this trade route, and for the international shipping
industry in general. It concludes that, by implementing a holistic combined
systems approach, Well-to-Wake emissions for the Pilbara to Asia export
shipping industry can be reduced by more than 90% by 2050, using fuel and
technologies already in use today and that can be implemented to optimize
vessel fuelling and operations according to regulatory requirements and
business drivers.
Achieving Emissions Reduction
The low-carbon LNG plant by Pilbara Clean Fuels has the potential
to initially produce
LNG with emissions of less than 200kg of GHG per tonne, which can be further
reduced to around 50kg/t LNG (and potentially to zero
through technology improvements).
LNG bunkering in the Pilbara region offers a substantial voyage
optimization by eliminating the need to deviate to other major bunkering hubs
in the region, thus significantly reducing emissions. This also reduces by 25% the emissions
associated with transporting LNG over long distances, compared
to LNG bunkering in other ports and ensures competitive pricing for LNG.
RINA’s bulk-carrier ship concept features a novel propulsion arrangement which
achieves a fuel saving of 12% when running on LNG at current market speeds and
offers the charterer greater fuel flexibility and enhanced economic benefits by
reducing LNG consumption. This can lead to lower fuel running costs,
particularly when compared with traditional fuel oil.
It provides redundancy, significantly reducing the risk of black
out, and does not suffer from well-known issues like acceleration through
engine’s barred speed range. The
ship can also harvest the benefits from wind propulsion.
The proposal is flexible in fuel selection and, most importantly,
the use of hydrogen produced on board is on demand. This concept, which
produces carbon dioxide that is captured and stored onboard, can be
delivered price-competitive as it has been designed to retrofit emissions-reduction equipment
in stages to suit the owners’ requirements. The design
allows charterers to modify the vessels with modular hydrogen production and
carbon capture and storage (CCS) equipment to meet GHG compliance as needed.
The bunker
vessel design incorporates a hybrid energy system,
including an 8MWh battery, allowing for emission free operation in port. This,
alongside the onboard CGR-designed process plant for vapour recovery and
re-liquefaction, significantly reduces emissions and enhances operational
efficiency.
The CO2 generated from onboard
pre-combustion hydrogen production can economically be integrated into the
large volume CCS
hubs currently being developed in the Pilbara region by
various third-party proponents.
The combination of systems and technologies allows LNG-fuelled
dry-bulk carriers to significantly reduce emissions today and to comply with
the IMO 2023 GHG Reduction Strategy through to 2050.
The study concludes that by implementing this holistic combined
systems approach, Well-to-Wake
emissions for the Pilbara to Asia export shipping industry can be reduced by
more than 90% by 2050. The reduction of GHG emissions is achieved
by progressively decreasing the LNG fuel share to the
engines while proportionately increasing hydrogen usage. This allows for staged
upgrades over the vessel’s lifetime to comply with the IMO requirements for
continuously reducing GHG emissions. The ship-owner to decide which path to
follow to stay ahead of compliance and competition. All necessary technologies for
achieving Net Zero Emissions with LNG as a marine fuel already exist and are in
use, marking the first time they have been proposed in
combination, demonstrating a positive path to Net Zero Emissions for
international shipping.
The Joint Study results present a significant opportunity for
decarbonising shipping in the Pilbara region and beyond, contributing to global
efforts to combat climate change.