Towards Net-Zero Carbon Emissions
LPG is Part of the Solution
Energy powers our world. And our energy choices can protect our environment. LPG is a cleaner-burning fuel with plenty of uses. When used for cooking, LPG provides smoke-free indoor cooking and reduces outdoor and urban air pollution. When used for industrial purposes, LPG produces less carbon dioxide than coal, heating oil or petrol, and emits negligible black carbon.
Decarbonisation is one of the industry’s main challenges and we firmly believe that LPG is part of the solution. To get from current limits of technology to a future where zero-carbon propulsion alternatives such as ammonia and hydrogen are mainstream options, significant advancements are needed. One such advancement has been the ability to efficiently power large two-stroke dual-fuel engines, utilising the diesel cycle combustion process to burn propane or LPG.
BW LPG has taken the lead in advancing technology that will allow us to decarbonise and maximise the value of an asset with a 20-year lifespan as we prepare for zero-carbon solutions. This complements our commitment that by 2030, we will not have any newbuilding that cannot achieve net-zero emissions during its lifetime. At BW LPG, we are on a journey to create zero-carbon shipping. Now, with LPG propelling our biggest carriers, we are well on our way.
Investing in Technology
The fundamental demands on shipping are changing. It is not just about shipping energy across world markets safely, more quickly and more efficiently. Increasingly, it is also about doing it more sustainably and responsibly. Climate change is real, and at BW LPG, we want to protect the environment for future generations by investing in technology that can reduce climate impact.
LPG Dual-Fuel Propulsion Technology
2020 marked the start of our project to retrofit 15 of our vessels with pioneering LPG dual-fuel propulsion technology, a project which began in early 2016 as part of our plans for a more sustainable and efficient ship design for the future.
In collaboration with MAN Energy Solutions, Wartsila, DNV and Isle of Man flag state, we pioneered the technology that allows us to use both conventional fuels and LPG – a cleaner marine fuel – to power our vessels. Our commitment to retrofit 15 of our VLGCs with LPG dual-fuel propulsion engines represents an investment of over US$130 million. The retrofitting program is expected to complete in 2022.
These vessels will emit up to 97% less sulphur and 20% less nitrogen than heavy fuel oil. They will reduce emissions of particulate matter by up to 90% and carbon emissions by about 15-20%. Although it requires significant upfront investment, the returns are positive in both financial and environmental terms, and demonstrate our commitment to action on ESG.
Digitalization and New Technology
We are also investing in digitalization through our SmartShips initiative to improve the efficiency of our fleet with real-time data and monitoring of performance and fuel efficiency; and are researching into the use of alternative fuels such as ammonia. We are also tapping upon BW Group‘s initiatives in other areas of research and development.
