Post by ferryfast admin on Oct 27, 2011 10:00:28 GMT -5
Ferries ponders fuel switch
Plentiful liquefied natural gas would save $25 million, CEO says
By Carla Wilson And Rob Shaw, Times Colonist October 26, 2011
Read more: www.timescolonist.com/Ferries+ponders+fuel+switch/5608162/story.html#ixzz1bzibMAn5
Converting vessels from diesel fuel to liquefied natural gas could save B.C. Ferries at least $25 million a year, says chief executive David Hahn.
"I don't think it's a question of if you'll see it, it's a question of when," Hahn said Tuesday.
B.C. Ferries has been examining the idea liquefied natural gas for almost two years. Washington State Ferries is also considering a changeover for six of its ferries.
This province has a "tremendous abundance" of natural gas, and Ferries needs to seriously look at the fuel source during retrofits and rebuilds in future years, Hahn said. "It makes a hell of a lot of sense."
The idea of using liquefied natural gas emerges as Ferries plans refits for seven to 10 small and medium vessels over the next few years, and another five C-class vessels in the next 15 to 20 years, Hahn said. He anticipates a vessel could be converted in less than two years.
"We're either going to refit, repair, do a major overhaul or build new," he said. "We'll probably look heavily at doing liquefied natural gas as - a fuel source. There's big savings there."
Replacing an engine is expensive, "but on a Spiritclass vessel, you could probably save $6 million a year in fuel on each one." Because of the cost, it makes sense to convert only vessels with at least 10 to 12 years left in them, he said.
B.C. Ferries is anticipating costs for the light diesel mix used for its 35-vessel fleet will reach $115 million in 2011-2012, Hahn said.
"We buy through a big contract that we price out every couple of years, and we do hedging when it makes sense. But you are pretty much subject to the whims of the market."
Given the abundance of natural gas in B.C. and distribution facilities, "it's a product that we could easily transition to," said Hahn.
Ferries staff have been mainly dealing with global marine engine manufacturers, such as Rolls Royce and Wärtsilä.
"This technology has been changing rapidly over the last four to five years," Hahn said. "We've been waiting for others to test it out so we are not first in line."
Changing to liquefied natural gas would result in a huge decrease in emissions, Hahn noted.
While Hahn does not expect it would result in lower fare, he said it would cap increases.
Last week, Royal Dutch Shell and a group of partners announced it bought the old Methanex plant site at Kitimat, bringing it closer to building its liquefied natural gas terminal.
John Hatley, vice-president for ship power with Wärtsilä North America, said in a recent release the industry is witnessing a transformation of the marine industry as it charts a course "toward a new era for natural gas."
Quebec is planning to use liquefied natural gas to power two planned ferries, scheduled to sail in 2013 and 2014.
In Washington state, consultant Kathy Scanlan has completed a preliminary report on converting six state-owned ferries to liquefied natural gas. Two new ferries are also planned, and the idea is to run at least one on the fuel.
A final report, which will include financial analysis of using liquefied natural gas, is expected in December. The state's Department of Transport estimates a savings of $10 million annually if the six existing ferries are changed over.
Norway runs passenger ferries powered by liquefied natural gas, Scanlan said. Fuel storage tanks for Norwegian ferries are located below passenger decks. Washington officials are favouring a design with tanks on top of passenger decks, allowing gas to escape into the atmosphere if a leak occurred, Scanlan said.
cjwilson@timescolonist.com
rfshaw@timescolonist.com
_________________________
BC Ferries
www.bcferries.com/
Plentiful liquefied natural gas would save $25 million, CEO says
By Carla Wilson And Rob Shaw, Times Colonist October 26, 2011
Read more: www.timescolonist.com/Ferries+ponders+fuel+switch/5608162/story.html#ixzz1bzibMAn5
Converting vessels from diesel fuel to liquefied natural gas could save B.C. Ferries at least $25 million a year, says chief executive David Hahn.
"I don't think it's a question of if you'll see it, it's a question of when," Hahn said Tuesday.
B.C. Ferries has been examining the idea liquefied natural gas for almost two years. Washington State Ferries is also considering a changeover for six of its ferries.
This province has a "tremendous abundance" of natural gas, and Ferries needs to seriously look at the fuel source during retrofits and rebuilds in future years, Hahn said. "It makes a hell of a lot of sense."
The idea of using liquefied natural gas emerges as Ferries plans refits for seven to 10 small and medium vessels over the next few years, and another five C-class vessels in the next 15 to 20 years, Hahn said. He anticipates a vessel could be converted in less than two years.
"We're either going to refit, repair, do a major overhaul or build new," he said. "We'll probably look heavily at doing liquefied natural gas as - a fuel source. There's big savings there."
Replacing an engine is expensive, "but on a Spiritclass vessel, you could probably save $6 million a year in fuel on each one." Because of the cost, it makes sense to convert only vessels with at least 10 to 12 years left in them, he said.
B.C. Ferries is anticipating costs for the light diesel mix used for its 35-vessel fleet will reach $115 million in 2011-2012, Hahn said.
"We buy through a big contract that we price out every couple of years, and we do hedging when it makes sense. But you are pretty much subject to the whims of the market."
Given the abundance of natural gas in B.C. and distribution facilities, "it's a product that we could easily transition to," said Hahn.
Ferries staff have been mainly dealing with global marine engine manufacturers, such as Rolls Royce and Wärtsilä.
"This technology has been changing rapidly over the last four to five years," Hahn said. "We've been waiting for others to test it out so we are not first in line."
Changing to liquefied natural gas would result in a huge decrease in emissions, Hahn noted.
While Hahn does not expect it would result in lower fare, he said it would cap increases.
Last week, Royal Dutch Shell and a group of partners announced it bought the old Methanex plant site at Kitimat, bringing it closer to building its liquefied natural gas terminal.
John Hatley, vice-president for ship power with Wärtsilä North America, said in a recent release the industry is witnessing a transformation of the marine industry as it charts a course "toward a new era for natural gas."
Quebec is planning to use liquefied natural gas to power two planned ferries, scheduled to sail in 2013 and 2014.
In Washington state, consultant Kathy Scanlan has completed a preliminary report on converting six state-owned ferries to liquefied natural gas. Two new ferries are also planned, and the idea is to run at least one on the fuel.
A final report, which will include financial analysis of using liquefied natural gas, is expected in December. The state's Department of Transport estimates a savings of $10 million annually if the six existing ferries are changed over.
Norway runs passenger ferries powered by liquefied natural gas, Scanlan said. Fuel storage tanks for Norwegian ferries are located below passenger decks. Washington officials are favouring a design with tanks on top of passenger decks, allowing gas to escape into the atmosphere if a leak occurred, Scanlan said.
cjwilson@timescolonist.com
rfshaw@timescolonist.com
_________________________
BC Ferries
www.bcferries.com/