Page 44: of Maritime Reporter Magazine (November 2016)

LNG

Norway Notebook

Fuel Talk: Greener Ships “Abandoned”

In the immortal words of one Kermit the Frog, “it’s not easy being green.” Nor inexpen- sive. Offshore ship owners managing the demand “fallout” of the past year and navigat- ing myriad environmen- tal strictures say their leap of faith toward (Photo: William Stoichevski) greener fuels has taken its toll. The idealism of a

Push Back: Leaders citing limited returns for “green-fuels” investments include (from left): decade ago has eroded,

Håvard Ulstein, MD, Island Offshore; Karsten Sævik, CEO, Remøy Shipping; and Ståle Kyrkje- delen, Norway’s Operations Manager, Bourbon Offshore.

they say, in the face of or all the ? nancial strains of re- for the owners is a disaster, and person- biggest deterrent to investments in LNG lost offshore business, cent months, offshore ship own- ally I have asked (Rolls-Royce business) engines has been the shortage of harbors, ers gathered for “hard talk” in a Bergen Engines (AS) for technical pro- tankers and barges offering LNG bunker especially long-term

Fhotel meeting room say they’re posals to convert those LNG engines and too little diversity among LNG bun- contracts. Oil company impressed with the performance of new into diesel. LNG is a big, big … a huge ker shuttles for remote operations. The tech they’ve taken on to conserve fuel disappointment,” Ulstein adds. ship owners’ withering critique, how- clients that once insisted and emit less: hydrogen fuel cells, bat- The arguments for LNG as a ship ever, suggests the lack of interest from teries and lique? ed natural gas (LNG). fuel — less sulfur particulate, 15 to 20 clients who demanded the green specs; on high-spec, “green”

Ship conversions for these energy sourc- percent les CO2, 90 percent less NOx the technology’s expense in tough times es, especially LNG, have done “nothing” — pale when you’re forced to sell, say, and unstable pricing for LNG are caus- vessels haven’t renewed to ease the task of cutting costs heaped a modern $12 million platform supply ing the most grief. on them by their oil company clients, es- vessel for $2.5 to keep your company “The problem is that they cost a lot of contracts for those pecially national champion Statoil. a? oat. money to build in the ? rst place. Cer-

Behind closed doors, senior represen- tainly, we have received a refund from ships. Still, ship owners tatives from Island Offshore, Remoy Gas Reckoning the (national NOx fund), but it doesn’t love the new green tech

Shipping and Bourbon Offshore Nor- Most of Norway’s LNG-fueled ? eet make up for the big change. These ves- way gave voice to their frustration amid sails near-shore, and offshore ship own- sels are still very expensive vessels and for those fuels, even if mounting costs. Asked if LNG has of- ers operate anywhere from one to two we do not get any premium for charter- fered any help in any way during the of these types, in the case of Bourbon, ing them. That is the big issue. We have the fuels themselves of- current demand drought, the answer was Remoy and Island, to half the PSV ? eet two LNG vessels, and the next vessel a blunt “No. No.” Three ship managers in the case of gas and hydrogen pioneer, that will go into lay up in our ? eet will fer limited range.

nodded in agreeance: “It’s a bloody di- Eidesvik Offshore. About three dozen be an LNG vessel,” Ulstein asserts.

saster,” says Island managing director, Norwegian-owned vessels are LNG-on-

Haavard Ulstein, his peers nodding in ly, duel diesel-LNG or LNG-hydrogen. Client LNG agreement. “The amount of environmen- Another 40 or so are on order, as per His frustration is echoed by Karsten tal effect these (LNG) vessels offer and numbers from The Norwegian Shipping Sævik, CEO of Remoy Shipping: “We

By William Stoichevski also the amount of pluses saved by the Association. have one such vessel, and she’s still on clients and that converted into day rates Until now, it has been argued that the contract with Statoil. From a technical 44 Maritime Reporter & Engineering News • NOVEMBER 2016

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