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Inland Navigation Europe, the European platform of national & regional waterway managers and promotion bureau, has said that the first inland ships running on liquefied natural gas (LNG) will begin operating in the autumn of 2011.

The Ministry of Transport, Public Works, and Water Management made a two million Euro subsidy available for innovation in inland shipping. The LNG Dual Fuel project, submitted by Deen Shipping BV, Pon Power BV and INEC is one of the largest projects qualifying for this subsidy.

The project is aimed at reducing the air emissions of inland shipping by utilising the latest developments in combustion engines and fuels. A dual fuel solution uses natural gas as the main fuel and diesel as the ignition fuel, which leads to lower emissions.

The Type C tanker Argonon will make use of liquefied natural gas (LNG) as fuel for the Caterpillar main engines. The expectation is that this will significantly reduce the emission of NOx and PM via a constant yield from the engine. At a later stage, when there is sufficiently available liquefied biogas (LBG) to be used as a fuel, LBG will be researched with the intention of finding a CO2 neutral solution.

The parties involved in the project will develop and test dual fuel technology using a pilot programme and eventually on board a ship. An important test will be whether the intended emission reduction can actually be realised. At the same time, an evaluation will determine to what scale the ship use of LNG dual fuel will reduce the total cost of business operation.

It is hoped that the expansion of LNG delivery stations over the next few years will make an important contribution to the success of dual fuel utilisation in the inland shipping industry. The ultimate goal is to develop a dual fuel solution by 2016 that cost effectively satisfies the CCR 4 emission requirements. The parties involved will report on their progress on a regular basis to the subsidy scheme management.

Pleae find below a recent interview Inland Navigation Europe recently conducted with Deen Shipping representative Gerard Deen.

INE: How was the idea for an LNG inland ship born?

Gerard Deen: The pressure on shippers to make products cleaner is increasing and inland shipping as a carrier is an integral part of this process. If we do not become green, we stop being an attractive business partner. Moreover, in 2016, we expect stricter emission rules from the Central Rhine Commission and the EU for new and replaced engines. Therefore, we all need to plan the transition to greener propulsion. Making the calculations, a dual fuel engine delivers the best solution.

INE: How clean is a dual fuel engine and how does it work?

Gerard Deen: The dual fuel engine runs on 20% diesel and 80% LNG. It is a normal and existing diesel engine which is being adapted to run on LNG. So, all existing medium and high speed diesel engines can be converted. It is a flexible technology as the dual fuel engine can run on diesel and LNG. On the demo tanker ship we launch in Autumn, the LNG tank will be on deck, but in the future we will see newbuilt ships with tanks in the engine room. In comparison to the current diesel engines, we will realize an emission reduction of 25% CO2, 50% NOx and 90% PM10.

INE: Is the technology safe and do the current regulations allow for sailing on LNG?

Gerard Deen: Regulation does not yet allow us to run inland ships on LNG, despite the fact it is proven technology. It has been used in ocean shipping since the eighties and risk analyses have been carried out by Lloyds Register and the Shipping Inspectorate which did not bring any additional risks to light in comparison to the use of diesel. Political decision makers have great ambitions for greening the transport system, so we are confident the rules for technical requirements and ADN will very soon allow the use of LNG for inland ships. That way, policy makers and industry can together realize their green ambitions.

INE: Does it pay off to invest in LNG technology?

Gerard Deen: As an entrepreneur, the bill must match in the end, that’s for sure. Surprisingly, we came to the conclusion that reducing emissions and costs go hand in hand. If you have to replace your engine or invest in a new ship, are you still going to spend money on old technology which nobody wants to buy in 2016 or do you opt for return on investment in the long run? You can also opt for after treatment equipment. The investment in a dual fuel engine and a LNG tank more or less equals the installation of after treatment equipment, but the lower cost of LNG versus diesel and the considerable higher maintenance cost of after treatment equipment made us opt for the dual fuel technology.