The project MAGALOGThe project MAGALOGMarine Gas Fuel LogisticsMarine Gas Fuel Logistics

Liquified Natural Gas (LNG) as a fuel for Liquified Natural Gas (LNG) as a fuel for shipsships

Establishment of LNG supply chainsEstablishment of LNG supply chains

in the Baltic Sea Regionin the Baltic Sea Region

The Core Problem in Port The Core Problem in Port CitiesCities

Welcome to

The Port

of Xxxxxxxxx

Air pollution from Air pollution from shipsships

in in CitiesCities of the of the Baltic Sea Baltic Sea RegionRegion(and others)(and others)

SOSO22-Emissions 80-95% from ships-Emissions 80-95% from ships%

Railway0%

Heating Systems

4% Trucks and cars1%

Ships95%

Public Transport

0%

Total 417 t/a

NONOxx-Emissions up to 80% from -Emissions up to 80% from shipsships

%

Railway3%

Heating Systems

4%

Trucks and cars14%

Ships78%

Public Transport

1%

Total 694 t/a

Growing ships´ emissions in the Growing ships´ emissions in the EUEU

Source: European CommissionSource: European Commission• land-based sources of air emissions are largely abatedland-based sources of air emissions are largely abated

• but ship emissions are growingbut ship emissions are growing

Project ObjectivesProject Objectives

• A pan-Baltic Sea European projectA pan-Baltic Sea European project• To overcome the air pollution problemTo overcome the air pollution problem• To develop supply chains for alternative To develop supply chains for alternative

fuelsfuels• To secure fuel supplyTo secure fuel supply• To further the image of environmentally To further the image of environmentally

engaged cities, ports, ship ownersengaged cities, ports, ship owners

2 LNG-operated offshore supply 2 LNG-operated offshore supply vessels already in service in vessels already in service in

NorwayNorway

1 LNG ferry in service in Norway 1 LNG ferry in service in Norway from late 2006from late 2006

4 more LNG powered ferries4 more LNG powered ferries

in operation in Norway in 2007in operation in Norway in 2007

Win-win situationWin-win situation

•Economic Economic benefitsbenefits

•Ecologic Ecologic benefitsbenefits

Economic benefits of LNGEconomic benefits of LNG

• Lower prices for LNG than for MDOLower prices for LNG than for MDO• Harbour dues reduction in Sweden because of good Harbour dues reduction in Sweden because of good

environmental performanceenvironmental performance• Selling of NOSelling of NOxx at a Norwegian exchange at a Norwegian exchange• Compliance with Marpol Annex VICompliance with Marpol Annex VI• Compliance with the European sulphur fuel directiveCompliance with the European sulphur fuel directive• Supply security (Gas from Norway)Supply security (Gas from Norway)• No investments for particle filters requiredNo investments for particle filters required• No investments for catalizers or washing technology No investments for catalizers or washing technology

requiredrequired• Future participation in COFuture participation in CO22 sales (Kyoto mechanism) sales (Kyoto mechanism)

ecologic benefits of LNGecologic benefits of LNG

• 100% less of sulphur dioxides100% less of sulphur dioxides

• 100% less particles100% less particles

• 80% less carbon hydroxides80% less carbon hydroxides

• 70% less nitrogen oxides70% less nitrogen oxides

• 50% less carbon monoxides50% less carbon monoxides

• 25% less carbon dioxides25% less carbon dioxides

The benefits of project The benefits of project participationparticipation

• Exploration of a new fuel at an early stageExploration of a new fuel at an early stage

• Environmental marketingEnvironmental marketing

• Taking part in the definition of European Taking part in the definition of European policiespolicies

• Prestigious collaboration in a European Prestigious collaboration in a European projectproject

• International and national PRInternational and national PR

Activities under the IEE Activities under the IEE programmeprogramme

• Supply chain and market structures for Supply chain and market structures for alternative fuels requiring separate supply alternative fuels requiring separate supply chainschains

• Market demand for alternatively propelled Market demand for alternatively propelled vehiclesvehicles

• Accompanying measuresAccompanying measures

LNG LNG

Gas Reserve

Gas Production& Liquefaction

Facilities(Exploration)

LNG-FeederLNG Import &

ReceptionTerminals

Exporter Importer

LNG Fuel Supply ChainLNG Fuel Supply Chain

Ro-Ro-Ship

ParticipantsParticipants

1.1. Gasnor ASGasnor AS NorwayNorway LNG SupplierLNG Supplier Project Project CoordinatorCoordinator

22 Baltic Energy Baltic Energy Forum e.V.Forum e.V.

GermanGermanyy

IEE Energy IEE Energy AgencyAgency

Assistant Project Assistant Project CoordinatorCoordinator

33 MARINTEK ASMARINTEK AS NorwayNorway Scientific Scientific OrganizationOrganization

Scientific Scientific CounsellingCounselling

44 Hordaland Oil Hordaland Oil and Gasand Gas

NorwayNorway Regional Lobby Regional Lobby OrganizationOrganization

AdvisorAdvisor

55 Stadtwerke Stadtwerke Lübeck GmbHLübeck GmbH

GermanGermanyy

Power and Power and Water Uitility of Water Uitility of LübeckLübeck

Pilot Project in Pilot Project in LübeckLübeck

66 Szczecin & Szczecin & Swinoujscie Swinoujscie SeaportsSeaports

PolandPoland Port AuthorityPort Authority ObserverObserver

StrategicObjectives

Workpackages expectedResults

Establishment of LNG supply

chains

Establishment of LNG supply

chains

Project LogicProject LogicDetailedObjectives

Reduction of ship borne Green-house

gases and other

Emissions WP 3

Common (IEEA) Communic. & Dissemination

WP 2Communication&Dissemination

Economic &sustainable

operation of LNG powered regularly commuting ships

Economic &sustainable

operation of LNG powered regularly commuting ships

Reduction of ships emissions in cities

and on fairways

Reduction of ships emissions in cities

and on fairways

StrategicObjective Establish supply chains

for alternative fuels (in this project Liquid Natural

Gas)

Invention of LNG as fuel for ships

Invention of LNG as fuel for ships

Public Relations,Presswork,NewslettersInternet-Site

Electronic Infos

Public Relations,Presswork,NewslettersInternet-Site

Electronic Infos

© 5/02 S

TR

ÄU

SSL

ER

Europa &

Strategy Consultants, L

übeck, europrojects@t-online.de

WP 4Market demand study for LNG powered ships

1 study on possible

demand for LNG ships

1 study on possible

demand for LNG ships

expectedOutcomes

Economic and

techncial proof of

viability of

LNG supply chains

Good Management Documentation

4 Reports

Good Management Documentation

4 Reports

2 Conferences4 Partnership

Meetings

2 Conferences4 Partnership

Meetings

WP 1Project

Management

WP 5LNG supply

chain feasibility studies

1 overall + 6 individual LNG supply chain

studies in ports and port cities

1 overall + 6 individual LNG supply chain

studies in ports and port cities

WP 6Pilot feasibility

study in Lübeck

DeliverablesDeliverables

1.1. Overall supply chain study in the Baltic Overall supply chain study in the Baltic Sea Region Sea Region

2.2. Individual supply chain studies in 6 portsIndividual supply chain studies in 6 ports

3.3. Market demand study for LNG-powered Market demand study for LNG-powered shipsships

4.4. Preparation for pilot investments in LübeckPreparation for pilot investments in Lübeck

ImpactsImpacts

• Contribution to MARPOL Annex VIContribution to MARPOL Annex VI

• Contribution to the European fuel directiveContribution to the European fuel directive

• Contribution to the European clean air Contribution to the European clean air directivedirective

Target GroupsTarget Groups

1.1. Port CitiesPort Cities

2.2. Inhabitants and tourists in Port CitiesInhabitants and tourists in Port Cities

3.3. Ship owners and ship operatorsShip owners and ship operators

4.4. Energy suppliers and distributorsEnergy suppliers and distributors

5.5. Ship builders and classification bodiesShip builders and classification bodies

6.6. European and national bodiesEuropean and national bodies

7.7. The publicThe public

Project ManagementProject Management

Coordinator

Gasnor A/S

Aksel Skjervheim

Assistant coordinator

Baltic Energy Forum

Jörg Sträussler

Gasnor A/S

TechnicalExpertise

Baltic Energy ForumEnergy

Management

Hordaland Fylkes-

Kommune

Stakeholder

Marinek

Scientific Expertise

Port Authority Szczecin

Stakeholder

Power Utlity Lübeck

Power Distributor

Steering Group

Aksel Skjervheim

Jörg Sträussler

Ralf Giercke

DurationDuration

• From January 1, 2007From January 1, 2007

• Until December 31, 2008Until December 31, 2008