The pilot project LNG at the Port of Skagen is now ready to be presented with a feasibility study and two reports that assess the possibilities and potential solutions of establishing and running an LNG fuelling operation on the port area.
The two DUAL Ports partners GEMBA and the Port of Skagen have conducted three analysis as part of the Interreg North Sea Region project, DUAL Ports:
The feasibility study builds on the two reports, ‘LNG market overview’ and ‘Business cases for LNG on the Port of Skagen’.
The two first reports sets the scene and identify the potential; this feasibility study build on the most promising ideas and assess the feasibility of an LNG production at the Port of Skagen.
The feasibility of the LNG production in the Port of Skagen is described and assessed from the perspective of the current competition in the region. At this point some of the LNG providers in the region has made great investments in large bunker barges and has a large organisation to back their investments. Some of these competitors has entered the industry with a strategic purpose to be first movers and establish a dominant position in the market. Whether these operators run a profit in the short run or long run on their bunkering operations is not clear.
The backing of a large corporation and an acceptance of running an LNG fuelling operation with very low profit or by just covering the operational costs may also mean that such operators are willing to lower the LNG bunker price below a breakeven point if a threat of new entrants becomes high.
This dynamics in the LNG market situation may have a great impact on the profitability and hence feasibility of the entire LNG production at the Port of Skagen. This potential market dynamic may become a hindrance to the feasibility of LNG production at the Port of Skagen. This study takes some of these dynamics into account but acknowledge that the potentially fatal impact this may have on the project.
Watch the interview with an introduction to the port and its other pilot project SURFACE by Jesper Rulffs, business developer at the Port of Skagen.
On the 24th-25thof April, the DUAL Ports project and the Port of Zwolle had invited stakeholders, regional businesses and the project partners for an LNG workshop, with a focus on the future potential and realistic opportunities for LNG.
LNG, also known as Liquified Natural Gas is an alternative fuel, that is becoming more common in shipping and maritime operations. The DUAL Ports project and the Port of Zwolle had invited local, regional and national speakers and participants, for a workshop to present and discuss the future perspectives for LNG.
The workshop revealed a growth in the use of LNG as a marine fuel. Future requirements from governments and legislators will demand a shift from conventional fossil fuels to more sustainable alternatives. According to TernTank, one of the Swedish presenters, LNG emits 20% less greenhouse gasses, which makes it a more sustainable alternative to conventional fuels. Also, the technology is ready and there are already ships operating on LNG fuel. The company TernTank in Sweden is already running four of their ships on LNG. According to TernTank, these new tanker ships reduce SOx and NOxemissions by more than 95 % and CO2emissions by 40 % compared to conventional tankers.
For DUAL Ports, the next step for LNG will be the results of a feasibility study made in the Port of Skagen, Denmark, which points to several possibilities for an LNG facility in Skagen. The preliminary results show a possible market share of 15%. The Port of Skagen is currently looking for an operator for a possible LNG facility – The audience was also very interested in the future of LNG. Jacob Turman, Business Development Manager from Global Green Developer expressed a great interest in becoming first mover both as owner and operator of an LNG terminal.
According to Juan Fornaso, Sales Vice President of Galileo Technologies in Argentina, the market is becoming more competitive, and one of the great advantages of LNG is that operations are scalable.
One of the takeaways from the workshop is that LNG is ideal as a transition fuel, as a pathway to IMO’s 2050 GHG targets. The International Maritime Organization (IMO) has set out a strategy for reducing greenhouse gasses in international shipping with 50 % by 2050, and the vision is to phase out GHG emissions completely by the end of this century – thereby, LNG is a pathway for more sustainable shipping and a transition to zero carbon fuels in the future.
The LNG Workshop hosted by the Port of Zwolle at the Lumen Hotel in Holland was the second workshop with a specific focus on LNG possibilities.
The first workshop was held in Skagen in Denmark in September, and had a focus on the technology and possibilities of LNG – this time it was a question of the reality and the economy of using LNG. You can read more about the workshop in Skagen here.
On the second day an innovation meeting was held, where four different companies presented innovative technologies that will enhance sustainable development. One of these methods is a new nuclear age that is developing. Another is the GHG absorbent granulate, which can be added to asphalt – this method is going to be used in our SURFACE pilot in Skagen, Denmark.
You can see the presentations from the LNG workshop and the Innovation meeting below.
On October 10, DUAL Ports had organized a workshop in Brussels, during the EU Week of Regions and Cities. 25 participants from the maritime industry, EU policy representatives and partners of DUAL Ports spend the afternoon learning about innovative green port solutions, and had fruitful discussions about how to tackle challenges in greening port business.
Felix Leinemann, Head of Unit Blue Economy Sectors, Aquaculture and Maritime Spatial Planning in DG MARE addressed the opportunities for Blue Growth and informed the interested listeners that blue economy is growing exponentially compared to other sectors. Developments in new technologies and digitalization, underwater robotics and innovative aquaculture creates a great potential for growth. He also stated the importance of ecological management – taking the environment into consideration during this vast development. As he put it – “We cannot make a profit, if we do not keep the sea healthy”.
The growing industry is also one of the main motivations for the existence of DUAL Ports, which has the objective of making small and medium sized (SME) ports more sustainable, but also more competitive. In a growing economy and with large investments in new technologies, SME ports often struggle with limited funds and staff. In order to tackle this, DUAL Ports works to develop methods and test concrete measures that will save both cost and carbon emission, for the benefit of the ports.
The audience was given a short presentation of three DUAL Ports pilots, by representatives of Port of Vordingborg, Denmark and Niedersachsen Ports, Germany. The pilots on sustainable and intelligent ports lighting, sustainable port management and port extension with waste materials demonstrated how these challenges are being tackled by SME ports. The session was followed by a debate between the speakers and the audience about how to improve conditions, to make sustainable ambitions more doable for small ports. Some of the main topics for discussion were the technologies available today and the legislation that needs to follow, and adapt to new methods and framework conditions. Also, the audience addressed questions related to funding – particularly why funding is often earmarked for large ports who already have resources – opposed to small ports, with limited financial and staff resources. The solution is still to come.
The keynote speaker, Gesine Meißner, President of the European Parliament Intergroup Seas, Rivers, Islands was very positive about DUAL Ports and stated that all ports should be made aware of the findings that have come and will continue to come out of the project.
The workshop was organized by the DUAL Ports partnership; hosted by the Hamburg Institute of International Economics (HWWI), Niedersachsen Ports and Region
The Port of Skagen held an LNG workshop as project partner in the Interreg project Dual Ports, which aims to decarbonize the ports in the North Sea region and reduce the environmental footprint.
Nearly 20 contributors were on the workshop’s programme to provide different perspectives and experiences with Liquified Natural Gas (LNG) fuel. The approximately 40 participants in the workshop were both project partners and external companies seeking knowledge about LNG now and in the future.
The Port of Skagen was the organizer of the conference and is working on highlighting the possibilities for establishing an LNG bunker plant at the Port of Skagen, and the outcomes of the workshop were very positive.
“We have had some very positive expressions from our contributors today, stating that Skagen has an optimal geographical position, making it attractive to invest in LNG bunkering in this area. We will definitely keep working on the business case of installing an LNG facility at the port”, says Willy Hansen, CEO at Port of Skagen.
During the workshop, experiences, ambitions and knowledge was shared from different sectors of the maritime and fuel industry. Lars Persson from Swedegas in Sweden gave his examples on lessons learned as the first country to have a land based LNG bunker station. According to him the future is bright, although there are still challenges for the use of LNG. National legislations and regulations are working towards LNG, but the ports’ own rules and procedures often still provide a challenge – technology is not an issue. Also from Greece, Stefanos Chonianakis from DEPA Public Gas Corporation SA gave examples of a government that is taking many steps towards the support of LNG in Greece.
One of the biggest challenges with LNG bunkering are security issues and lack of knowledge of the actual danger of using LNG. Hanne Hollander, real estate manager from the Port of Emden expressed some of the challenges when investigating LNG options. The German authorities have concerns in regards to potential accidents with LNG. The exchange of knowledge through this workshop revealed that LNG is much safer than many assume. LNG does not burn the same way as a normal fire, and accidents are even much less likely to occur.
During the day, the Port of Skagen had many inputs to work further on, for their pilot project within DUAL Ports.
“Our purpose of being part of DUAL Ports is to investigate the possibilities for an LNG plant in Skagen and make a business case. As a port, we are naturally occupied with providing the right facilities to the port’s customers, and we want to develop the port’s activities in respect to the environment, “says Jesper R. Rulffs, business developer at the Port of Skagen.
In order to gain a broader network for the upcoming work on LNG, the Dual Ports were present at the 48 hours conference GoLNG Tour on board the Norwegian LNG ferry “Stavangerfjord”.
The conference featured nearly 100 participants from companies and businesses from the LNG Cluster in North Sea and the Baltic Sea. All the participants were there to demonstrate their vast knowledge, cutting edge technologies and newest innovations to the world.
Dual Ports hosted a reception on the conference second day and garnered huge attention. New connections were made and potential pilots to the DUAL Ports from stakeholders in Denmark, Norway and Germany were discussed.
In Denmark the news of the Port of Skagen commitment to LNG sparked the interest of the fishers’ present who are currently looking into LNG options for their upcoming new builds. In addition, Danish ship architects and ship builders also voiced their interest for the DUAL Ports project following the news of the Port of Skagen’s commitment to the project.
Potential investors for the LNG operations in Denmark were also uncovered through conversations with the Danish representatives present at the conference. The two trusts Inseroand Skagen Trustwhere pointed to as potential investors for the project.
In Norway the company Liquiline expressed a keen interest in providing the LNG solutions for both the Port of Skagen and the Port of Zwolle in order to expand the currently limited LNG Supply network in the SECA area.
In Germany the port of Rostock expressed an interest in joining the Dual Ports project, but also added that in addition to the goals set by DUAL Ports, they would also focus on how to reduce the noise levels in the port as this is a major environmental concern for the port administration.
In total the conference resulted in 29 new connections from various parts of the LNG supply chain, all of whom are interested and willing to help the DUAL Ports project in any way they can.
DUAL Ports will be presented to partners in Interreg Baltic Sea Region, at a matchmaking event sailing between Norway and Denmark.
The Go LNG project & the BALTIC SEA REGION LNG CLUSTER has invited different partners to a “hands-on” International Conference, Study Trip and Matchmaking Event.
The event will be a 48 hour conference onboard Fjord Line’s LNG powered ferry, M/S Stavangerfjord, going from Bergen (Norway) via Hirtshals (Denmark) and Langesund, Oslo (Norway) and back again, while participants can experience and learn more about:
- The latest news on LNG development and technologies
- TTS LNG bunkering
- Guided tour at M/S Stavangerfjord “LNG from the Engine room to the Bridge”
- Matchmaking meetings with leading market players
- Outstanding networking opportunities
DUAL Ports will also board the ship, and you can see the full programme here.
For the third time the partners participating in the European project DUAL Ports met to discuss the possibilities of transforming ports into more environmentally friendly ones. At the partner-meeting in Emden this week, the project managers reported on the current state of their particular DUAL Ports projects and the progresses already made. During the three days in Emden and Leer, the challenges that still have to be overcome were discussed together. “We all face the same challenges. We want to benefit from the experience of our partners and work together to develop larger solutions”, explains Dr. Matthäus Wuczkowski, Sustainability Manager at Niedersachsen Ports.
Exchange with the project MariGreen
Moreover, the participants of the DUAL Ports met with the MariGreen project in order to share knowledge and exchange experiences. The MariGreen project also deals with the possibilities of making the maritime economy more environmentally friendly. However, the DUAL Ports project primarily concentrates on finding solutions for port authorities, while the MariGreen project is mainly focused on the development of concepts for shipping companies. At the meeting, experts from both sides were able to discuss within small groups the potential and current challenges of LNG, hydrogen and sail cargo. All participants agreed that there will be a variety of environmentally friendly fuels in the maritime economy in the future. However, which low-emission fuels will ultimately prevail, is largely dependent on medium-term legislation, on the incentive mechanisms of the market and on the awareness of society.
“In order to work efficiently on these issues in the future, greater cooperation between ports and the maritime sector is necessary”, stresses Wuczkowski. “For this reason, we are also planning to promote a close exchange between the two projects in the future.”, Katja Baumann, managing director of MARIKO GmbH, agreed.
The DUAL Ports project
The European project DUAL Ports, launched in 2015 and financed by the EU and the Interreg North Sea Region Programme, brings together ports, businesses and scientific institutions from Belgium, Germany, the Netherlands, Denmark and Scotland. The aim of the cooperation is to jointly develop solutions for the long-term reduction of CO2 emissions and environmental pollution caused by the activities of the port industry. Through the exchange of knowledge between the partners and the emerging synergies, the development and implementation of sustainability innovations in ports should be promoted and facilitated.
During the next Partnership Meeting held in Germany, the DUAL Ports partners will participate in a workshop, sharing and discussing knowledge with another Interreg project, MariGreen.
On October 24, DUAL Ports and MariGreen will come together in a joint workshop in Leer, Germany. The workshop will include an introduction of both projects, presentations of the three common pilots; SAIL, HYDROGEN and LNG, as well as discussions on development, progress and results.
The Port of Skagen is in the process of entering DUAL Ports as a beneficiary partner on the LNG pilot project. Therefore, the Port of Oostende and Business Vordingborg participated in an official visit to the Port of Skagen in July.
Willy Hansen, CEO of Port of Skagen welcomed the partnership to the most northern part of Denmark, when the visit to Skagen was held in July. The partnership had a tour of the port, a presentation of some of the biggest companies situated on the port and a presentation of the expansion plans for the port, that will also mean an LNG bunkering installation in the port.
Also, a representative of the business consultance organization, Lene Kappelborg gave a presentation on their thoughts on how to develop the maritime sector in the northern part of Denmark.
The partnership had a guided tour of Skagerak Pelagic A/S, one of the leading pelagic seafood production companies in Europe, specialising in herring and mackerel products, customised according to customer requests, including the famous Matches, that is exported to the surrounding countries in the North Sea Region.
The visit ended with an early morning trip to the docks, to see the “MS Independence of the Seas”, which is one of the world’s largest cruise ship, carrying almost 4,500 passangers.
The visit is considered the official welcome to Port of Skagen in DUAL Ports, and it is expected that Port of Skagen will become an official partner in the project before the end of 2017.