Feasibility and commercial considerations of LNG-fueled ships

Regulatory initiatives obligate maritime operators to reduce emission via retrofitting propulsion and exhaust treatment systems or by using alternative fuels. Although these initiatives facilitate the emergence of LNG as a marine fuel, the proliferation of LNG technology is dependent on the relationship that defines the competitiveness of conventionally fueled and LNG-fueled ships. This article proposes a methodology to evaluate the commercial incentives that are required to promote LNG as a marine fuel, which can be used to assess policy initiatives that encourage the use of alternative technologies and estimate their market impact. To develop the context and support this methodology, the following areas are discussed: (1) international regulatory frameworks and regional initiatives supporting the use of LNG as a marine fuel; (2) commercial and operational attributes that determine the competitiveness of LNG-fueled ships; and (3) challenges preventing the adoption of LNG as a marine fuel, including the uncertainties and less-quantifiable concerns expressed by the maritime operators. (C) 2016 Elsevier Ltd. All rights reserved.