LNG For Fuel

UPS Expands Agreement for Renewable LNG in Texas

UPS today announced today it has expanded its agreement with Clean Energy Fuels to use up to 500,000 gallon equivalents of renewable liquefied natural gas annually in Texas. UPS stations in Houston and Mesquite will dispense the RLNG to a fleet of about 140 UPS tractors. According to UPS the deal builds on UPS’s current agreement with Clean Energy Fuels. UPS is using approximately 1.5 million gallon equivalents of renewable compressed natural gas (RCNG) annually in California where UPS operates nearly 400 CNG vehicles.

“Renewable natural gas is helping us to meet growing customer demand while reducing our environmental impact,” said Mark Wallace, UPS senior vice president, global engineering and sustainability. “Today’s agreement demonstrates UPS’s commitment to develop alternative fuels and advanced technologies. By the end of 2017 we will have driven one billion miles with our alternative fuel and advanced technology fleet.”

Redeem® by Clean Energy is a renewable natural gas program that sources biomethane, using a variety of methods. It can be used as CNG or LNG and is derived from many renewable sources, including decomposing organic waste in landfills, wastewater treatment and agriculture.

“UPS’s continuing commitment to new, clean vehicle fuel is helping to shape the future of transportation,” said Harrison Clay, president of Clean Energy Renewables of Clean Energy. “Our collaboration with UPS builds demand to create and expand markets.”

The deal is part of an initiative announced last year by UPS to significantly expand its use of RNG natural gas in UPS’s alternative fuel and advanced technology fleet. In addition to natural gas, UPS also uses many other alternative fuels in the UPS fleet, including propane, ethanol, renewable diesel, and electricity. In 2014, 5.4 percent of total gas and diesel purchased was displaced by using these alternative fuels according to UPS.

The UPS fleet includes more than 6,840 all-electric, hybrid electric, hydraulic hybrid, CNG, LNG, propane and light-weight fuel-saving composite body vehicles.

Keel of Tallink's new LNG Powered Fast Ferry Laid

The hull assembly of Tallink’s new fast ferry Megastar was laid today at the Meyer Turku shipyard.

Tallink noted in a statement that Megastar will be 212 meters long, can accommodate altogether 2800 passengers and will start operating on Tallinn-Helsinki route. She will be ready at the beginning of 2017. Megastar will use LNG as fuel, but will also be able to run on marine diesel. She will have a service speed of 27 knots and will comply with the new and stricter emission regulations for the ECA areas including the Baltic Sea according to Tallink.  

The CEO of AS Tallink Grupp, Janek Stalmeister said, “As this is our very first LNG vessel with upgrades in so many areas, we celebrate every step taking us closer to her delivery next year. We can’t wait to bring this magnificent ship to our passengers”, said Stalmeister. 

AS Tallink Grupp is a passenger and cargo transportation service provider in the Northern region of the Baltic Sea. The company owns altogether 15 vessels and operates under the brands of Tallink and Silja Line on 6 different routes. AS Tallink Grupp employs 7000 people and has annually up to 9 million passengers worldwide.

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image: Tallink 

Crowley Christens LNG Ready Product Tanker

Last week Crowley Maritime christened the second of four new, Jones Act product tankers at the South Florida Petroleum Terminal in Fort Lauderdale, Florida. The 50,000 dead-weight-ton, 330,000-barrel-capacity Texas joins sister ship Ohio, which was christened by Crowley in November, and received the American Bureau of Shipping’s LNG-Ready Level 1 approval.  This means Crowley has the option to convert the tanker to liquefied natural gas for propulsion in the future.

“Crowley welcomes this industry defining, LNG-Ready vessel into service,” said Rob Grune, senior vice president and general manager, petroleum services.  “Not only will this be a high -performance vessel capable of meeting or exceeding our customers’ petroleum transportation needs within the U.S.-Coastwise trade, it will do so in a way that is more environmentally friendly than those that have come before her.”

Texas was constructed by PSINC (formerly known as Aker Philadelphia Shipyard, Inc.), with construction management services provided by Crowley’s Seattle-based, naval architecture and marine engineering subsidiary Jensen Maritime. Two additional product tankers are being built by PSINC for Crowley and have planned deliveries later this year.

The new tankers are based on a proven Hyundai Mipo Dockyards (HMD) design which incorporates numerous fuel efficiency features, flexible cargo capability, and the latest regulatory requirements. Texas is 600 feet long and is capable of carrying crude oil or refined petroleum products. 

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Image: Crowley 

Shell and Ryder agreement for 15 LNG Trucks

Ryder announced today the company has signed an agreement with Shell for 15 LNG trucks supporting oil and gas logistics operations in Lafayette, Louisiana and Houston, Texas.

Ryder currently manages road transportation for Shell’s freight hauling activities across its U.S. exploration and production activities, including a dedicated fleet that directly supports its Gulf of Mexico operations. According to Ryder the new 15 LNG fueled vehicles will replace Ryder diesel-powered vehicles in the existing fleet and will be serviced out of Ryder’s Lafayette, Louisiana facility.  Ryder has signed a five-year fuel agreement with Shell which will provide LNG fuel for the dedicated natural gas fleet.

“We are excited to work with Ryder to transfer diesel vehicles to LNG. LNG can be a good choice for truck owners and more are making the switch to LNG,” said Dan Flynn, Shell Vice President Logistics.

Ryder has deployed CNG and Liquefied Natural Gas vehicles into the fleets of Ryder customers in 12 U.S. states and Quebec, Canada. The Company operates Liquefied to Compressed Natural Gas (LCNG) fuel stations at its Fontana and Orange, California service locations.

“It has truly been a pleasure to have Shell as a loyal Ryder customer for more than 10 years,” said John Diez, President of Ryder Dedicated Transportation Solutions. 

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Above: Ryder Service and Fueling Location in Orange, California 

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Above: Ryder Service and Fueling Location in Orange, California 

Zero emissions featured with new Wärtsilä ferry concept

Wärtsilä has released a concept for a series of shuttle ferries, featuring zero or low emissions.  The concept has been developed in line with the Norwegian government's new environmental regulations for ferries emphasizing the elimination of harmful emissions. 

Wärtsilä noted the concept has been developed through cooperation between Wärtsilä's Ship Design and Electrical & Automation offices.  According to Wärtsilä the single solution offering provides customers with an optimized design and a single point of contact, thereby streamlining the engineering, integration, and follow-up procedures throughout the project phase. 

The design characteristic focuses on high energy efficiency with low resistance, both above and below the water line. The ferries are designed to run entirely on batteries or in a battery-engine hybrid configuration where the fuel options are liquefied natural gas or biofuel. In plug-in operation, the fuel consumption is reduced by 100 percent compared to conventional installations, and all local emissions are completely eliminated. With the plug-in hybrid configuration, emissions are reduced by up to 50 percent. 

"Wärtsilä is fully committed to producing ship designs, marine products, and integrated solutions that make a significant contribution towards lowering the environmental footprint of shipping. This new concept is one more example of this focus. By making it possible for ferries to eliminate exhaust emissions entirely, we feel that we are again acting proactively to protect the marine environment," says Riku-Pekka Hägg, Vice President, Ship Design, Wärtsilä Marine Solutions.

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The new Wärtsilä ferry concept featuring zero exhaust emissions.

Eagle LNG Partners Monthly Status Report

On January 4, 2016 Eagle LNG Partners submitted a monthly progress report to the U.S. Federal Energy Regulatory Commission which covered activities from December 3, 2015 through January 4, 2016 for the Eagle LNG Project.  Eagle LNG Partners (Eagle LNG) is a wholly owned subsidiary of Ferus Natural Gas Fuels LP.

The FERC report noted during the month of December, Eagle LNG entered into an agreement with CH-IV to provide Front-End Engineering and Design (FEED) activities for the project. Eagle and CH-IV completed a technical evaluation that will enable Eagle to increase the overall capacity of the facility from 900,000 gallons/day to 1,500,000 gallons/day of LNG, potentially increase the on-site storage capacity, and utilize a mixed-refrigerant liquefaction technology. Eagle expects that the site’s footprint and basic design will remain the same. Eagle plans to conduct necessary engineering and survey work to confirm the site footprint and design, potential increase in storage capacity, and any differences in environmental impacts resulting from these changes.

The proposed Eagle LNG Project is located along the St. Johns River in the City of Jacksonville, Florida. It will occupy a 194 acre parcel that is zoned for industrial activity, in an area that currently hosts other bulk fuel terminals. It would include at least one, and possibly two, LNG storage tanks, a marine load-out facility and dock that could accommodate small- to mid-size LNG vessels as well as bunkering barges (for domestic ship fueling at the Port of Jacksonville), and a truck load-out facility.  It will receive natural gas transported by a local utility through existing and expanded pipeline facilities located adjacent to the Project site, and would procure electric energy from the electric utility which serves the Jacksonville area.

General Dynamics NASSCO Successfully Completes LNG Bunkering for the Perla Del Caribe

On December 11, General Dynamics NASSCO successfully completed bunkering of liquefied natural gas for the Perla Del Caribe, the world's second containership to be powered by LNG. Bunkering services were provided by Clean Energy as well as Baker Hughes and Envent during a 48-hour period at the NASSCO shipyard in San Diego.

Representatives from NASSCO worked collaboratively with several regulatory agencies to prepare for the event, including the U.S. Coast Guard, the American Bureau of Shipping, the San Diego Fire Department, and the Air Pollution Control District.

The Perla Del Caribe received 210,000 gallons of LNG which is nearly double the amount bunkered for its sister ship, the Isla Bella, the world's first LNG-powered containership. The Isla Bella was built by NASSCO and delivered in October of this year.

"This represents another milestone amongst many in the advancement of green, environmentally-friendly ship technology. This effort in particular demonstrates successful collaboration between industry and several regulatory entities, laying the groundwork for comparable green projects in the future," said Parker Larson, director of commercial programs at General Dynamics NASSCO.

"As Captain of the Port of San Diego, I am grateful for the exceptional preparation and cooperation involved with this LNG bunkering operation," said Captain Jonathan S. Spaner. "Indeed, these LNG-powered containerships are unique in our Nation and the world. I commend the team at NASSCO and all interagency partners for their efforts to ensure a safe, efficient, and successful bunkering evolution."   

Upon delivery, the Perla Del Caribe will join the Isla Bella for its trade route between Jacksonville, Florida, and San Juan, Puerto Rico. The containerships are part of a two-ship contract between NASSCO and TOTE, signed in December 2012.

Crowley Selects Eagle LNG as Marine Fuel Provider

Crowley Puerto Rico Services, Inc. announced it has selected Eagle LNG Partners as the liquefied natural gas supplier for the company’s new LNG-powered, Commitment Class ships, which will be delivered in 2017 for use in the U.S. mainland to Puerto Rico trade. Eagle LNG is a wholly owned subsidiary of Ferus Natural Gas Fuels. To support Crowley’s LNG needs, Eagle LNG will build a natural gas liquefaction plant offering a capacity of 200,000 gallons per day (87,000 gallons per day initially) in Jacksonville, Florida. The facility is slated to be operational by early 2017 according to Crowley.

“Crowley is proud to take a leadership position in the industry’s shift to cleaner-burning, natural gas fuel solutions,” said Crowley’s John Hourihan, senior vice president and general manager, Puerto Rico services. “The partnership with Eagle LNG is an important first step in developing sustainable supply infrastructure to ensure these highly technical, environmentally friendly vessels operate to their full capability.”

The supply agreement between Eagle LNG and Crowley will provide LNG fuel for the El Conqui and Taino, which are expected to be in service in the second quarter and fourth quarter of 2017 respectively.  This LNG plant is separate from the previously announced Eagle LNG Federal Energy Regulatory Commission export terminal located along the St. Johns River, in Jacksonville, which will continue to focus on export markets in the Caribbean and Atlantic Basin.

“The marine sector represents a significant opportunity for LNG fueling in the U.S., and Eagle LNG is well-positioned to build the necessary infrastructure and provide the specialized logistics to facilitate this energy transformation,” said Dick Brown, CEO, Eagle LNG. “It takes companies like Crowley to lead that wave of change. Eagle LNG is proud to work with such a pioneering organization.”

LNG fueled German passenger ferry maiden voyage

Wärtsilä Corporation announced today the LNG fueled German passenger ferry, owned by Reederei Cassen Eils GmbH, had its maiden voyage on December 11, 2015.

The LNG fueled German seagoing vessel, which is powered by a Wärtsilä LNG propulsion solution will operate between Cuxhaven and the island of Helgoland. This route takes the vessel close to the UNESCO World Heritage listed Wadden Sea National Park, an ecologically sensitive area in the south-eastern part of the North Sea. According to Wärtsilä because of the need to minimize exhaust gas emissions in this area, the ferry will operate primarily on LNG using two 9-cylinder Wärtsilä 20DF medium-speed dual-fuel engines.

"We are very proud to be operating the first newbuild German vessel fueled by LNG. Compared to conventional diesel fuel, this ship will produce 20% less CO2, 90% less NOx, and almost zero SOx and particulates. Thanks to Wärtsilä's dual-fuel technology with built in redundancy, the vessel can operate efficiently and without restrictions in the Wadden Sea National Park. Furthermore, it was very important for us to select a reliable and experienced partner who was able to deliver a complete propulsion package," says Dr. Bernhard Brons, Managing Director of Reederei Cassen Eils GmbH and CEO of AG EMS. 

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The LNG fuelled passenger ferry will operate between Cuxhaven and the island of Helgoland. Image: Wärtsilä 

Teck Announces LNG Haul Truck Pilot Project

Teck Resources Limited announced today it is piloting the use of LNG as a fuel source in six haul trucks at its Fording River steelmaking coal operation in southeast British Columbia marking the first use of LNG as a haul truck fuel at a Canadian mine site.

According to Teck Resources the use of blended LNG/diesel fueled haul trucks has the potential for significant environmental benefits and cost savings. Teck Resources noted LNG produces virtually no particulate or sulphur dioxide emissions and reduces Greenhouse Gas emissions by up to 20 percent in comparison to diesel alone. There is the potential to eliminate approximately 35,000 tonnes of CO2 emissions annually at Teck's steelmaking coal operations and potentially reduce fuel costs by more than $20 million annually by adopting LNG and diesel hybrid fuel across the operations. FortisBC is transporting and supplying LNG to the mine site and is making a financial contribution towards the pilot.

"LNG is a fuel source that has the potential to lower costs, significantly reduce emissions and improve environmental performance at our operations," said Don Lindsay, President & CEO, Teck. "We are committed to minimizing our own carbon footprint while at the same time continuing to provide the mining products that are essential to building a modern, low-carbon society."

The pilot is one of the steps Teck is taking to achieve its long-term target to reduce annual GHG emissions by 450,000 tonnes at its operations by 2030. To date, Teck has reduced annual emissions by 170,000 tonnes as the result of initiatives implemented since 2011.

"Like British Columbia, Teck is a global leader in finding innovative ways to reduce GHG emissions while continuing to create opportunity," said Premier Christy Clark. "It's a concrete example of the difference clean-burning LNG can make in the fight against climate change."

Teck, with support from FortisBC, has upgraded the Fording River Operations truck maintenance shop, provided engine conversion kits, installed fueling facilities and implemented a comprehensive safety program in advance of the pilot.

The pilot is expected to run until mid-year 2016 and will provide more information about the potential of using LNG more broadly across Teck's haul truck fleet, creating the opportunity for further fleet conversions to LNG in the future.

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Above: One of the haul trucks at Teck's Fording River Operations in southeast B.C. retrofitted to use LNG fuel, as part of a pilot project that marks the first use of LNG as a haul ruck fuel at a Canadian mine site. Source: Teck Resources


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