Post on 18-Oct-2020
Asst. Prof. Lawrence Henesey1 & Dr. Laima Gerlitz2
1Blekinge Institute of Technology,,Karlshamn, Sweden
2Wismar University of Applied Sciences , Wismar, Germany
INTEGRATED LNG VALUE CHAIN IN THE BALTIC SEA REGION :
CASE OF GoLNG Project
LNG as Future Marine Fuel: Trends and Challenges 3rd April 2019
Shanghai Maritime University (SMU), China
2
’
Karlshamn
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GO LNG Project
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Organisation4
BSR Blue corridor strategy
BSR LNG Business Cluster
BSR LNG competence center
LNG fuel distribution strategy
LNG Standard and regulation toolbox
LNG shipping index
LBG business concept
Functioning business network
R&D
Study visits
B To B meetings
Business plans and pilot projects
Training programs
Training & research infrastructure
Service package
Network of training institutions
Integrated value chain study
Integrated LNG Value
Chain
Launched –April 2017
Launched –April 2017
Sweden, Norway, Spain, theNetherlands
WWW.GOLNG.EU
Bringing LNG out of the “Dark Side”
…Or attend a GO LNG meeting to see how
misinformed people are?
WWW.GOLNG.EU
What is LNG?
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LNG – Governance & Regulation Drive – MARPOL VI
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LNG – Effects of MARPOL VI
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LNG – Effects of EU Policy
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The EU White Paper for Transport (2011) has set a greenhouse gas reduction goal of at least 40% by 2050.
GHG emissions reduction from transport of 60% by 2050.
Measure Coverage Timing
Electricity in urban/suburban and other densely
populated areas
Appropriate number of publically
accessible points
by end 2020
CNG in urban/suburban and other densely populated
areas
Appropriate number of points by end 2020
CNG along the TEN-T core network Appropriate number of points by end 2025
Electricity at shore-side Ports of the TEN-T core network and
other ports
by end 2025
Hydrogen in the Member States who choose to
develop it
Appropriate number of points by end 2025
LNG at maritime ports Ports of the TEN-T core network by end 2025
LNG at inland ports Ports of the TEN-T core network by end 2030
LNG for heavy-duty vehicles Appropriate number of points along
the TEN-T core network
by end 2025
Along the TEN-T refuelling stations are installed
every 400 km
AnLNG truck has an autonomy of about
800–900 k
by 2020
Why LNG?
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Turning framework conditions into opportunities:
Environment – negative footprint from air pollutants, emissions, particulate matters.
Technology – progress in technologies and infrastructure in transport, energy and other markets.
Economy – intensifying globalisation and intra-trade among global regions; increasing supply and demand conditions; cost-benefit scenarios.
Governance – international and EU regulations; local regulative incentives; collaboration and internationalisation.
Reducing Environmental Pressure from Shipping
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Ability and feasibility to reduce emissions
Durr et al, 2005. LNG Technology for the Commercially Minded.
LNG as Technologically Feasible Solution
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LNG is the most promising alternative shipping fuel technology in the short to medium term, at least for short sea, e.g. Ro-Ro vessels.
Nearly a decade of small scale LNG driven ships experience has proven the reliability of the technology.
Suitability of LNG for long-distance freight transport as an alternative to diesel.
Reduction of fuel costs of LNG in comparison with diesel for inland navigation by approx. 20%.
LNG as THE Alternative
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LNG as A Blue & Green Business Opportunity
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Building critical mass for LNG
Secure energy supply
Ensure competition
Blue & green growth and innovation
LNG As Alternative Competitive Edge for Blue & Green Growth 1
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Marine technology service providers
Shipbuilding
LNG distribution, bunkering and storage solutions across multimodal transportation
Port operation environmental performance
LNG cooling energy for storage and loading operations
Strategic approach towards the LNG infrastructure deployment in BSR shaping BSR Blue Corridor strategy
Adding users to existing LNG infrastructure –> decreasing costs
LNG As Alternative Competitive Edge for Blue & Green Growth 2
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Marine technology service providers
Technology, skills and knowledge for LNG value chain, establishing BSR LNG competence centre
Business opportunities for regions LNG industry, establishing BSR LNG business cluster.
Competence building – & sharing opportunities
Sustainability factor for LNG infrastructure, providing LBG value chain, technological concepts and business models
LNG is regarded as one of the most promisingalternative strategies and business opportunities. Yet, High infrastructure cost and limited demand, effects to the fact that cost of infrastructure is from 30 to
50 % of the LNG cost for end user.
ResearchGap
Research Question
Yet, no recent studies record approaches on LNG use as opportunity and value proposition leading towards emerging value chains that integrate different transport modes and business sectors, and where LNG is recognised as value proposition for all stakeholders involved.
How to integrate LNG stakeholders involved in diverse LNG activities, with different needs, capacities and capabilities into one macro-regional transport and energy supply and value chain?
Domain of LNG Value Chain Integration
Segments of LNG Value
Chain of the BSR
Segment SpecificationKnow-
ledge & Skills
Infra-structure
& Technolog
y
Economy & Business
Environ-ment & Gover-nance
LocationEvaluation
criteria
Shipping
LNG feeder vessels +++ + 0 0 SE Existing +++
LNG bunker vessels +++ ++ ++ ++ SE Developing ++
Ship-to-ship bunkering (STS) +++ ++ ++ ++ BSR Projected +
LNG Terminals LNG Import terminal +++ ++ ++ ++ LT, NO, PL SE Planned 0
LNG onshore infrastructure
Small-scale export / bunker facilities +++ + + + DK, LT, PL, SE Missing -
LNG bunker stations ++ 0 - 0 DK, NO, SELNG filling stations ++ ++ - 0 DELNG fuel tank containers +++ +++ ++ ++ BSR
LNG trucks +++ + + + DE, LT PL, SE
End-users
Tank & bunkering solutions +++ ++ ++ ++ BSR
LNG trucks for roads +++ ++ - ++ LTLNG-fuelled buses for public transport +++ ++ - ++ NO, PL
LNG power supply ++ - - - DE, NO, SE
LNG ferries +++ +++ ++ ++ DE, DK, NO, PL, SE
LNG tank containers for railways ++ 0 - - LT
LNG value chain integration for BSR - 2017
Lack of Refuelling Infrastructure
Source: NGVA, 2018
Overall Strategy for LNG Value Chain Integration
Source: Gerlitz, 2018
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Theory based and practice related research have been applied and built upon …
MarTechLNG
Marine Competence, Technology and Knowledge Transfer for LNG in the South Baltic Sea Region
Go LNG
LNG Value Chain for Clean Shipping, Green Ports and Blue Growth in Baltic Sea Region
Qualitative expert interviews
Surveys
Practical findings
INTERREG IV A South Baltic Program
INTERREG V B Baltic Sea Region Program
EU Clean Fuel Strategy
EU Directive on Deployment of Alternative Fuel Infrastructure
Research findings mainly
based on primary
and qualitative
data
Primary empirical data sources were gained in form of:
Evidence-based observations (here: case studies),
Empirical data from quantitative surveys and qualitative expert interviews
Obser-vationsgained from project activities
Findings have been validated & verified by the project target groups:
• Policy makers• Ports’ &terminals’ operators• International associations &
corporations• Shipping companies & ship building
yards• Academic & research institutions • Regional industries
WWW.GOLNG.EU
Strategic ecosystem approach for macro-regional and cross-sectoral LNG value chain integration
• LNG knowledge basis & skills development
• Education & Training• Research tools & infrastructure• Accessibility to knowledge &
skills• Cross-sectorial and
multidisciplinary capacity building
• Organisational culture & learning
•Availability of LNG technology & resources
•Cross-industrial LNG applications
•Macro-regional infrastructure development
• Shared technology & infrastructure
•Digitalisation & advanced IT toolkits
•Macro-regional governance• Strategic future foresight•Harmonisation of regions'
framework conditions• Sustainability compliance• Social responsibility
•Access to finances & LNG infrastructure funding
schemes•Co-funding & crowd funding
opportunities• Shared ownership and joint
projects•Open innovation
•Cross-sectorial collaboration and internationalisation
Knowledge & Skills
Infrastructure & Technology
Environment & Governance
Economy & Business
Integrating LNG Value Chain
Source: Gerlitz, 2017WWW.GOLNG.EU
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Small-Scale LNG Terminal & Distribution – Lithuania
Source: Klaipedos Nafta 2018
25Source: Becker Marine Systems, 2018
LNG for End-Users: LNG for Energy – Germany
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Half of all ships on order are LNG driven !LNG is obviously the fuel of the future, at least if you studythe list of ships in order with any relation to Sweden.
Sjöfartstidningen, 4 april 2017, kl. 11:30
Source: Furetank
LNG Ships – Sweden
27Source: LNG Cluster Lithuania, 2018
Small-Scale LNG Distribution – Lithuania
28Source: LNG Cluster Lithuania, 2018
LNG for Transprotation: LNG Hybrid Locomotive – Lithuania
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Functional LNG Value Chain Integration in the BSR
Source: Gerlitz, 2018
Example of Value Chain at a Port…
QUESTIONS?
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GO LNG PROJECTTHANK YOU