Bio-LNG supply too limited for shipping needs, says Rystad
A new analysis from Norway-based energy research firm Rystad Energy warns that global supply of bio-liquefied natural gas (bio-LNG) is unlikely to meet projected demand from the shipping sector, raising concerns over its viability for large-scale decarbonisation.
While demand for bio-LNG in shipping is forecast to reach 16 million tonnes of fuel oil equivalent by 2028, Rystad states that most biomethane, the gaseous precursor to bio-LNG, is already locked into other sectors. Over 84% is used for electricity generation and 10% is allocated to road transport, leaving just 6% available for other uses, including maritime.
“Demand for biodiesel, if unrestricted, outstrips the total supply. The situation with bio-LNG is also constrained, with challenges for both production and allocation capacity,” said Junlin Yu, Senior Data Analyst, Shipping at Rystad Energy.
Although bio-LNG is seen as a practical drop-in fuel for LNG-fuelled ships and is generally cheaper than biodiesel, access to sufficient volumes may be difficult given competing sector demand. Its ability to be used in existing LNG bunkering and propulsion systems has added to its appeal as a short-term compliance fuel.
… to continue reading this article and more, please login, register for free, or consider subscribing to gasworld
Register today
You’ve reached your weekly limit to access free articles!
Want to keep reading?
Please register for free and create a profile to gain access to this full article and gasworld’s daily news.
For access to more content including our monthly digital magazines, subscriber-only features or columns and all our other gasworld archives, please consider subscribing.
Alternatively, you can continue reading more articles as a guest on Saturday, 7th June at 7:37AM
