NEOT was the first Finnish company to use fossil-free LBG in shipping
Major steps towards more sustainable shipping were taken on Tuesday 27 November 2018 when NEOT’s time-chartered vessel Tern Sea bunkered LBG (liquefied biogas) at the Gothenburg harbor, Sweden. NEOT became the first Finnish company that has used renewable LBG in commercial shipping operations. LBG is a 100% fossil-free fuel with no CO2 emissions. It is produced from various types of organic waste, such as residues from food industry and grain handling. The LBG bunkered at Gothenburg was produced in Lidköping, Sweden.
Using LBG isn’t the first time NEOT has introduced more sustainable fuel solutions to its shipping operations; two of the company’s time-chartered vessels have been running on LNG (liquefied natural gas) since 2016.
“We are continuously seeking ways to reduce the environmental impact resulting from our company’s operations, and LBG is a very interesting opportunity in the field of shipping. We have had positive experiences with LNG so LBG is a logical next step. This was also the first time that our partner Terntank used LBG in their vessels. We have been working closely with Terntank to ensure that LBG works well in our time-chartered LNG vessels”, says Satu Mattila, Head of Planning, Shipping and Operations, NEOT.
The chemical composition of LBG is equal to LNG which enables flexible shift to LBG. However, currently the main challenge for expanding the use of LBG is its limited availability.
“We are eager to expand the use of LBG as soon as its availability enables commercially feasible longer-term planning. As we have now technically tested LBG in our LNG vessels, we are all set for larger-scale use when the product’s availability is steady. We hope to see more product on the market during the coming years,” says Mattila.