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Greener Supply Chains Kicks Off Pilot Projects in LNG Engine Market

More than ever, the transportation sector globally is keenly pursuing cleaner fuels to reduce their environmental impacts. Trucks and cars meant for long-haul distribution have grown exponentially over the years. With millions of miles heavy-duty trucks trot every day, if the distance from only logistics is taken into account, carbon emission has been a mounting concern for the entire sector. Evidently, several governments across the world are enthusiastically promoting electrification of the transportation to mitigate the problem of carbon footprint. Tellingly, nonetheless, it is quite practical to estimate that the leap will take some time to generate impact. Thus, the sales of LNG engines have been witnessing upward trajectory.

From Niching to Mainstreaming—Search for Clear Fuel

Diesel-powered vehicles both commercial and passenger contribute astounding well-to-wheel CO2 emissions. LNG powered trucks have for long been promoted to make a dent in this. The use of LNG storage and transport technologies has thus undergone rapid shifts. The growing market feasibility of LNG tech is underpinned by the relentless move toward making supply chain more sustainable more environmentally and economically. This is a key pivot for broadening avenue in the LNG engine market.

From niching to mainstreaming, the pace of change is supported by the adoption of special cryogenic tanks and LNG trailers for transportation. The trade of LNG fuels for meeting the swelling interest of cleaner fuels logistics fleet is a key accelerant for growth in LNG engines market.

A Germany-based logistic company, DHL Supply Chain, has recently announced to add 13 new Volvo LNG units to its fleet in the U.K. The new vehicles will use bio-LNG and will lead to an impressive 80% reduction in carbon emissions. Consequently, many other logistics companies are bracing for LNG-powered fleets for sustainable transport in a move toward going ‘green’. LNG engine manufacturers are taking note and have grown their spending on improving the propulsion systems.

Retrofitted with LNG Kits Makes Economic Sense

In addition to the role in fueling the logistics and supply chain vehicles, LNG engines are particularly promising for the maritime industry. The popularity of LNG as an environmental-friendly fuel for the marine engines has spawned millions of dollar in opportunities for players in the LNG engine market. Shippers are harnessing modern natural-gas powertrains to reduce the CO2 emissions. This aside, given the surge in energy prices of fossil fuels and prevailing uncertainty LNG engines make economic sense for all parties across the spectrum. Countries in gulf region, a major supplier of LNG fuel to developing and developed nations, are expected to gain revenues from the move toward cleaner fuels, thus enriching the LNG supply chain.

Indeed, over the years, the shipping industry has been more discerning about the emissions they account for. The adverse ecological impacts of NOx emissions from the maritime industry has attracted glaring attention worldwide. The marine industry is responding to the problem by adopting propulsion systems that support natural gas fuels. Specifically, this has enabled them to meet IMO Tier III emission regulations

LNG fuel systems have undergone massive advancements, both in the range and its suitability of use in different propulsion systems. Thus far, LNG engine manufacturers are keenly unveiling systems with improved engine performance to support the modern propulsion system for the marine engines.

Hence, for both regulation compliance and for economic gains, the demand for products in the marine industry has been propelling investments in LNG engine market.

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Pilot Projects Underpin Advancements in LNG Engines

Over the years, emerging economies have witnessed pilot project to replace diesel with LNG in dumpers. It is only natural that manufacturing of dumpers fitted with engines with dual fuel –LNG-Diesel—systems received fillip. The LNG engine market is thus witnessing a slew of investments in manufacture of these to cater to the emerging demands.

Coal India Limited (CIL) in India for one has begun pilot project to convert diesel dumpers to LNG systems used for mining. The company considers this to be game changing step toward reducing its carbon footprint. Several other mining dumper manufacturers are expected to switch to dual fuel (LNG-Diesel) systems. With ceaseless push toward reducing the environmental impact of mining operations, this will be another growth driver for the LNG engine market.

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