FMC Commissioner Optimistic for Use of Clean Fuels in Maritime Industry

The Federal Maritime Commission has posted Commissioner Mario Cordero's remarks at the January 26, 2012 World Liquefied Natural Gas (LNG) Fuels Conference. He noted that there was a need for the use of LNG fuel to reduce emissions from the international maritime shipping industry. Despite challenges on the availability and use of LNG, he stated he is optimistic with the present scope of the environmental agenda and that the industry has high expectations for LNG as a clean fuel alternative. Lastly, he highlighted recent use and development of clean alternative fuels, such as with the Port of Los Angeles and Long Beach's Clean Trucks Program.

Policy for Use of LNG Fuel by Carriers Would Reduce Emissions

According to Commissioner Cordero, the international ocean shipping industry accounts for approximately 3% of global greenhouse emissions. With 90% of global trade being carried by sea, he stated furthering a policy for the use of LNG fuel by international carriers would be paramount in reducing the carbon footprint by the industry, and would also have a global impact. However, he stated that this would require present day commitment by the various stakeholders.

Despite Challenges, Commissioner Reports High Industry Expectations for LNG

The current major drawbacks on the use of LNG center on its availability and cost as a fuel source for the maritime industry. Despite the slow progress of alternative fuel application and other challenges, the Commissioner stated there is the goal that by promoting technology and fuel usage the industry could work towards zero emissions and a lower carbon footprint. The Commissioner stated he is optimistic with the present scope of the environmental agenda and that the industry has high expectations for LNG as a clean fuel alternative to reduce reliance on current fuel oil used.

More Sustainable Approach to Maritime Issues is an FMC Priority

According to the Commissioner, environmental issues have become increasingly central to marine terminal operators and ocean carriers' agreements and shipping practices. As ports and ocean carriers adjust to reduce their environmental footprint, the Commissioner stated the FMC will serve as a helpful partner. One of the Chairman’s top priorities for the FMC is to help advance the Obama Administration's goals of creating green jobs and seeking a more sustainable approach to maritime issues. FMC could be a partner in the recognition of best practices in furthering environmental progress and enhancing carbon emissions transparency as well as be an advocate for the use of sustainable shipping practices.

Highlighted Recent Activities on Use & Development Alternative fuels

The Commissioner stated that LNG continues to make progress as a credible fuel alternative for international transport carriers. He provided the following recent activities on the use and development of LNG and other alternative clean fuels:

• More ship designs powered by LNG. The international vessel classification society Bureau Veritas has approved a design for a 14,000 TEU containership to be powered by LNG. These vessels can also run on heavy fuel oil if required, increasing flexibility in the period before LNG bunkering is widely available. Additionally, Kawasaki Heavy Industries completed the development of a large 9,000 TEU containership fueled by LNG with features that satisfy the IMO requirements for voyages in North American and European Emission Control Areas¹.

• U.S. gov't conducting LNG study in Great Lakes. The U.S. Government has continued its research of LNG feasibility and engineering/design study for the Great Lakes, which is expected to be released in the fall of 2012. Parameters of the study include: investigating the existing maritime use of LNG, exploring the feasibility of and conceptual designs for conversion of steam-powered Great Lakes bulk carriers, addressing supply chain requirements, etc.

• Port of LA/LB clean trucks program. The Clean Truck Programs (CTP) of the Ports of Long Beach and Los Angeles have been successful in moving forward with cleaner and alternative fuels. The latest truck fuel development at the Port of Long Beach is that of the Hydrogen Fuel Cell truck, development toward a zero emission in harbor truck drayage system.

¹The International Maritime Organization’s standards to control harmful exhaust emissions from ships engines, pursuant to Annex VI to the International Convention on the Prevention of Pollution from Ships (MARPOL), consists of two sets of standards to control emissions from ships: (1) global standards for the sulfur content of fuel and nitrogen oxides (NOX) emissions from ship engines; and (2) as some areas may require further control, Annex VI contains geographic-based standards where ships operating in certain designated "Emission Control Areas" are required to comply with more stringent fuel sulfur and engine NOX limits.

(See ITT's Online Archives 11091346 for summary of the clean fuel regulations in California and voluntary slowdowns by shipping companies substantially reducing air pollution caused by near-shore ships.

See ITT's Online Archives 12012526 for summary of the Clean Ports Act of 2011 being introduced on January 25, 2012, and trade opposition to the new bill. The bill, S.2011, would allow local ports to regulate and enforce fuel-efficient truck programs that go beyond current federal mandates.

See ITT's Online Archives 11122831 for reminder that the Port of Long Beach terminals began barring the oldest, most polluting drayage trucks on January 1, 2012.)