CRYO Shipping AS has developed a new type of tanker design that will enable ship owners to implement clean and cheap bunkers. By major conversion of offshore vessels into LNG tankers the new established company aim to become the world’s first and largest LNG feeder and bunker operator.
CRYO Shipping specializes in regional short sea shipping of liquefied natural gas (LNG), a cryogenic gas at a temperature of -163 °C and compression of 600 times. LNG is one of the most promising fuel solutions to reduce the global, regional and local emissions from shipping. This is also a fuel that there is plenty of in the world, but where infrastructure is missing.
CRYO Shipping will contribute to solve infrastructure challenges by their specially designed LNG tankers. Eventually the company will also look into transport and supply of renewable cryogenic fuel as liquefied biogas (LBG) and liquid hydrogen (LH2). The company aims to establish a fleet of flexible and efficient small-scale LNG tankers to be able to secure supply of LNG to consumers regardless of location. The ships will be able to perform both feeding and ship-to-ship (STS) bunkering operations in all types of waters and ports.
“We are working with firm conversion project of platform supply vessels into LNG tankers which should be in operation already 1st half 2018,” says Nicholai H. Olsen, managing director and partner of CRYO Shipping. “We have designed the LNG system by using known technology, but combined in a new way. We have also developed design for newbuildings with completely new and unique functionality that we aim to contract when our portfolio can meet the investment.”
Today there are many industries using LNG as energy source, in addition to a total of 100 vessels using LNG as fuel. By 2020 the expected numbers of LNG powered ships are about 1,000, and expected further exponential growth into the next decade. Today LNG logistics are predominantly done by road transport – giving costly logistics with high environmental – and socioeconomical impact. The few small scale LNG tankers that exist today are not designed to meet regularity and supply requirements in a growing LNG market. Use of LNG storage bunkering facilities will result in congested traffic at storage facilities and harbors, and we therefore focus on providing direct STS bunkering both at port, anchor and at sea.
CRYO Shipping’s solution will thus provide both marine and land-based industry more efficient operations with less time consumed in connection with LNG supply, and consequently at a lower cost than what is achieved today. Another challenge that the company will be able to resolve is the current uncertainty associated with the cost structure of LNG. This is a critical issue to be resolved in order for the shipping industry to implement LNG in their operation. In today’s market, it’s raised questions about the structural conditions in the LNG industry such as lack of competition and monopoly formations – which has resulted in artificial high prices for LNG. CRYO Shipping believes that as an independent player they will be important in order to create a real competition that is essential to the dynamics of the LNG market and the credibility to consumers of LNG in terms of both price and supply.
CRYO Shipping will naturally use LNG as fuel for their vessels. In addition, they will install battery technology to supply power during loading, unloading and STS bunkering, and this will completely eliminate local and regional emissions during port stay. “Based on our preliminary market research, we have received very positive respond in the market where both LNG suppliers as wholesalers and manufacturers, and LNG consumers as heavy industry, power generation and shipping have shown great interest in our solutions,” says Nicholai H. Olsen. “We are working on specific customer projects that we expect will be announced soo
Source: CRYO Shipping AS