Gothenburg Port Rewards LNG-Fuelled Vessels with Extended Discount Period

| Sweden: Gothenburg
Ship-to-ship LNG bunkering in Port of Gothenburg between Coralius and Ternsund

Ship-to-ship LNG bunkering in Port of Gothenburg between Coralius and Ternsund

The Port of Gothenburg is enhancing its support for Liquefied Natural Gas (LNG) as a viable, low-emission marine fuel by introducing an extended discount period on the port tariff and is already outlining a renewed environmental discount. The move follows closely on a similar environmental incentive offered by Port of Amsterdam from August 1.The Port of Gothenburg introduced an environmental discount on the port tariff in 2015 in an effort to increase the number of calls by ships running on liquefied natural gas (LNG). Several major LNG investments have been made since then, including initiatives by a number of Swedish shipping companies. This has had a positive impact on the environment, including reduced emissions of sulphur dioxide, particles and nitric oxide into the air in western Sweden. The Port Authority is keen to have that grow continued.

There are different types of LNG bunkering available in the Port of Gothenburg. Ship-to-ship bunkering is on offer, as is land side bunkering at the port’s anchorage area which can be done at the same time as loading and unloading is in progress.

As part of the Gothenburg Port Authority environmental discount scheme, vessels that report good environmental performance receive a 10 per cent discount on the port tariff, assuming they achieve a certain level according to the globally recognised environmental indexes ESI and CSI. Vessels that run on LNG receive an extra discount of 20 per cent each time they call. The LNG discount is subject to a time limit and presently is set to conclude at the end of 2018. It is now the subject of discussion for extension.

LNG is currently the cleanest marine fuel available for large-scale shipping. Use of the fuel began to gather momentum at the Port of Gothenburg in the second half of 2016. Prior to that, shipping companies were sceptical about investing as there was no means of bunkering LNG at the port. At the same time, the bunkering companies were unwilling to supply LNG without a customer base.

“A catalyst was necessary to break the deadlock, and the energy discount has been a strong contributing factor behind many players choosing to follow the LNG route,” said Edvard Molitor, Environmental Manager at the Gothenburg Port Authority.

“It took time before it really took off, but today these players are at the LNG forefront at the Port of Gothenburg. Now that the discount period is drawing to a close, we can see that the upward trend is continuing at the port with a growing number of LNG calls. We aim to maintain our support for this development, and we are therefore planning to extend the four-year discount period by a further two years,” said Edvard Molitor.

Plans for a more technology-neutral environmental discount

In 2019, the LNG discount will be 20 per cent as previously, before being phased out during 2020 with a reduction to 10 per cent. However, during the phase-out period the Port Authority will focus on developing the regular indexed environmental discount, which takes greater account of the vessels’ environmental impact rather than the technology or the fuel used to run the vessel.

“We will of course continue to support vessels that offer a good environmental profile, but we won’t make any distinction in the discount between vessels that produce the same environmental outcomes. As the environmental effects of LNG operation continue to be good, these will also be incorporated into our future environmental control system,” said Edvard Molitor.

Fact file: LNG                                                                                                                                                     

Compared with traditional fuel, emissions of sulphur, particles, heavy metals and nitric oxide are reduced substantially. The use of LNG internationally is growing in line with increasingly stricter global emission rules for shipping. LNG has also been highlighted by the EU as a key marine fuel for the future.

Rise in the number of LNG calls at the Port of Gothenburg

Year – LNG calls
2015 – 0
2016 – 16
2017 – 111
2018 (Jan-May) – 56 (135 for the full year 2018)

Source: Port of Gothenburg

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