Germany continues to back LNG as fuel

The German government continues to back liquefied natural gas (LNG) as fuel in order to slash emissions in shipping.

Germany’s ministry for economic affairs and energy (BMWi) said in a statement last week it had launched a call for funding to firms looking to build refueling or bunkering ships for LNG and renewable fuels.

BMWi said that with this funding it aims to increase the number of such ships and thus improve the infrastructure available for refueling with alternative fuels.

Moreover, the refueling ships would operate in Germany and in the European Union, according to the ministry.

Depending on the size of their project, companies could receive funding of up to 40 percent of the total costs over a period of three years.

Also, shipyards based in Germany have to build the vessels, the ministry said.

Owners looking to build such vessels can now submit their applications until January 31, 2022.

A total of 86 million euros is currently available in the federal budget for the years 2022-2024, the ministry added.

This new move follows the third call for funding to shipowners looking at equipping and converting vessels to go on LNG by the German ministry for transport and digital infrastructure (BMVI).

Prior to that, BMVI said in December last year it had extended the second funding call by the end of this year due to the Covid-19 pandemic.

LNG-powered vessels on the rise in Germany

Germany has been supporting LNG as shipping fuel for years and some ports such as Brunsbuttel already host bunkering operations on a daily basis.

Liquind Marine and GasCom Equipment now regularly deliver LNG via a truck-to-ship method to Elbferry’s Greenferry I in Brunsbuttel.

German owners such as shipping giant Hapag-Lloyd are also investing heavily in LNG as fuel.

Hapag-Lloyd has earlier this year started using the world’s first ultra-large containership LNG retrofit on its Asia-North Europe trade lane.

The German firm will test the 15,000 TEU Brussels Express for a while, prior to deciding on new LNG conversions.

In addition to this vessel, Hapag-Lloyd has earlier this year exercised an option for six additional 23,500+ TEU vessels, boosting the total order at South Korea’s DSME to twelve LNG-powered ULCVs.

DSME will deliver these vessels worth about $2 billion in 2023 and 2024.

- Advertisements -

Most Popular

Adnoc awards Ruwais LNG gig to Baker Hughes

A unit of UAE’s energy giant Adnoc has awarded US energy services firm Baker Hughes a contract for the...

Trafigura enters $400 million loan to buy US LNG cargoes for Europe

Energy trader Trafigura has entered into two revolving credit facilities worth $400 million and will use the funds to...

DNV: eight LNG-powered vessels ordered in September

Classification society DNV has added eight LNG-powered ships to its Alternative Fuels Insight platform in September, 13 ships less...

More News Like This

Shell starts fueling Hapag-Lloyd’s LNG-powered giants in Rotterdam

Shell has started delivering liquefied natural gas to Hapag-Lloyd’s giant LNG-powered containerships in the Dutch port of Rotterdam under...

Hapag-Lloyd welcomes second LNG-powered giant in its fleet

Germany’s Hapag-Lloyd has taken delivery of the second of the twelve ultra-large LNG-powered containerships from South Korea’s Hanwha Ocean. Hanwha...

Hapag-Lloyd’s LNG-powered newbuild wraps up first bunkering op in China

Hapag-Lloyd's ultra-large LNG-powered containership, Berlin Express, has recently completed its first bunkering operation in China's Ningbo-Zhoushan port. This containership is...

Hapag-Lloyd takes delivery of first LNG-powered giant

Germany’s Hapag-Lloyd has taken delivery of the first of the twelve ultra-large LNG-powered containerships from South Korea's Hanwha Ocean. Hanwha...