Exhibition & Conference

13-16 September 2021

Singapore EXPO, Singapore

Strategic Programme

John Hatley

VP Americas Marine Solutions & Director Market Shaping

Wartsila North America, Inc

16:00 - 16:25

Wednesday, 18 September 2019

S2.6 Marine LNG Fuel: Challenge & Opportunities

For the past century ships plied the oceans while owners faced a simple choice, consume residual fuel as all others and compete on the basis of efficient operational strategies.  Today this single fuel mantra has morphed into a multitude of fuel alternatives all representing a commodity play on fuel energy costs.  Vessel owners face a complex balancing dilemma, what fuel strategy will boost my bottom line while assuring compliance with ever stricter emission requirements?  These decisions are undertaken in the context of simultaneously seeking competitive advantage for profits along with market share.

What are these major risks, possible threats, new challenges, and current opportunities to seize the new paradigm now to secure a viable maritime shipping business going forward?  Timing is critical for decision making as there exists a large disparity between the long term ship investment horizon that spans multiple decades and the short term accelerating frequency of change measured in only years. 

This presentation will examine these elements across several major risk sources including environmental, economic, regulatory, political, and technological.  Key to understanding this complex situation will be a fast paced overview of structural changes, advancing technologies, and alternative choices portraying the strategic adoptions to survive as well as thrive.

The audience will find valuable takeaways including briefs on; the IMO 2020 global 0.5% step change and making sense of ensuring chaos, how real CO2 reduction structural change begins, regional air quality benefits yield better human health and longer life, understanding defensive technology as traditional fuels fight for viability, identification of stranded assets, and the why of growing global preference for marine LNG fuel.

This presentation will conclude with a description how LNG fuel supply infrastructure is transitioning upward along the adoption S curve to maintain synchronization with accelerating demand.  We will explore that history often rhymes as shipping transitioned across two centuries commencing with the 1800’s leap with great technological changes moving from sail to steam and then into the 19th century of the diesel powered ship.  This lengthy maritime adoption is in contrast to the rapid step change of railroads where thousands of locomotives hurdled from steam to diesel in the years immediately following WW2.

It’s a new era for LNG as we embark on a comparatively minor technical transition propelled by the key enabler; safe, clean, available, abundant, and affordable gas fuel.