Pilbara Clean Fuels (PCF), Oceania Marine Energy (Oceania), and RINA Marine Consulting (RINA) are pursuing net zero-emissions on the iron ore export trade routes from Port Hedland in Western Australia.
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An Oceania, Kanfer ammonia-ready LNG bunkering vessel. Oceania Marine Energy is now developing a ship-to-ship LNG marine fuel bunkering service capability for use at Port Hedland.
Pilbara Clean Fuels Pty Ltd is pursuing the development of a new, mid-scale low carbon footprint LNG plant to be located at Port Hedland in Western Australia, the world’s largest iron ore export port. The project will provide an Australian LNG fuel-supply capability through a new facility for the conversion of pipeline natural gas to LNG, responding to market demand for cleaner marine bunker fuel for dry-bulk iron ore carriers operating round-trip voyages between the Pilbara and Asia.
Market studies show increasing worldwide adoption of LNG as a marine fuel, with supply availability one of the key drivers. The base-case plant capacity is 0.5 Mtpa, based on market analysis for Port Hedland alone, that is, not counting other major Pilbara ports. This indicates potential demand of 1.0 Mtpa by 2030.
A key feature of the project is an electrified plant with outsourced power supplied from renewable sources, predominantly. The design intent is to significantly reduce Scope 1 (direct) and Scope 2 (purchased energy related) emissions compared to conventional LNG plants, thereby providing an ability for round-trip voyage bunkering in Port Hedland to achieve lower overall greenhouse gas (GHG) life-cycle emissions than other fuel options.
The LNG re-fuelling concept is based on ship-to-ship bunkering of vessels while at anchor off Port Hedland. Oceania Marine Energy Pty Ltd is developing the associated LNG marine fuel bunkering service capability based on the charter, ship management and operation of purpose-designed LNG bunker vessels, while the vessels are to be provided by Norwegian ship-owner Kanfer Shipping.
In terms of the ships for the ore carriers and their onboard fuel use, RINA Marine Consulting is developing a concept for a new 209 000 DWT Newcastlemax dry-bulk ship design with an innovative LNG marine fuel system involving pre-combustion carbon removal and hydrogen production. This with the objective of meeting and exceeding IMO 2050 emissions reduction marine vessel Carbon Intensity Index (CII) objectives.
The RINA fuel system concept involves the capture, onboard storage and offloading of liquefied carbon dioxide or solid carbon at loading or discharge ports for onshore handling, monetisation or disposal. The concept provides a credible line-of-sight pathway to ‘zero emissions’ for the application of LNG as a marine fuel.
By solving the historic criticism of LNG as being only a ‘transition fuel’, rather than having a long-term future as a ‘zero emissions’ fuel, this solution is likely to be welcomed by the marine engineering community due to the extensive maritime operational experience of LNG and its known safe handling characteristics.
The Pilbara to Asia dry-bulk trade route is particularly suited for early adoption of the pre-combustion carbon removal and hydrogen production onboard concept due to proposed availability of low carbon intensity LNG bunkering at Port Hedland, along with an ability for offloading carbon dioxide or solid carbon and a variety of monetisation or disposal options.
Recognising the complementary aspects of their respective project interests and business objectives, PCF, Oceania, and RINA have entered into a Memorandum of Understanding (MoU) to collaborate in the development of an ‘end-to-end’ low-carbon profile LNG production and marine vessel bunkering capability concept for the port of Port Hedland. Furthermore, RINA’s 209 000 DWT Newcastlemax dry-bulk vessel and fuel system design provide a path to ‘zero emissions’ for the adoption of LNG as a marine fuel on a 2050 time frame.
PCF Managing Director, Robert Malabar comments: “Along with our existing partners Oceania, we are delighted to have formed the new collaborative relationship with RINA. The partnership can demonstrate an attractive commercial development strategy not only to meet the immediate needs of IMO 2030 emissions compliance, but also the engineering step-change needed to create a practical path to IMO 2050 net-zero emissions objectives. We know the maritime community is happy with LNG as a marine fuel. We believe the outcome of the studies should provide compelling argument in support of the Western Australian Government’s May 2020 announcement to create an international LNG fuelling hub in the Pilbara.”
Oceania managing director, Nick Bentley adds: “Oceania, PCF and the new collaboration with RINA herald the beginning of a new decarbonisation initiative in Western Australia, enabling a much-needed lower-carbon fuel source for shipping. The Oceania and PCF collaboration is aimed at providing a supply capability for low-carbon footprint LNG, available for the first time on the routes of Australia to Asia iron ore shipping fleets. RINA adds to that with new ship and fuel system designs enabling LNG to be viewed as a potential future zero-emissions marine fuel.
“Together we are excited to participate in developing Australia’s primary green corridor – supporting significant emission reductions in the short term and in the future – for the maritime trade routes critically important to Western Australia’s economy,” says Bentley.
RINA Marine Consulting Executive Vice President, Massimo Volta continues: “The combined knowledge and expertise of PCF, Oceania and RINA will allow a comprehensive approach to the project, rather than to the single phases, that will maximise the emissions reduction effort. The shipping industry is living in a time of uncertainty that still requires immediate investments. Port Hedland is the world's biggest iron ore export point and providing such a system with a solution that allows a more flexible transition while achieving IMO 2050 targets with an existing fuel will be a massive contribution to the path to West Australia green corridor.”