The Wall Street Journal reports that cost savings and new regulations have combined to make cheaper, cleaner-burning natural gas a compelling fuel option for commercial marine operators. The loser? Imported diesel fuel.
Ferries, tugboats, cruise ships and cargo vessels are mostly powered by diesel and marine oil, which have higher sulfur and nitrogen oxide emissions than the diesel used in trucks and cars. The regulations will require ships operating within 200 miles of the U.S. coast to reduce sulfur emissions beginning in 2015.
In addition to new regulations on engine exhaust, cost savings will be considerable.
Harvey Gulf Chief Executive Shane Guidry said that he expects the about 50% fuel cost savings will allow the company to attract new customers and negotiate longer term contracts. Even with the $58 million price tag on each ship, “They’re more cost effective,” said Mr. Guidry, who figures on using the boats for at least 25 years.
As Boone Pickens predicted, the development of the new technology required to power these vessels is creating new opportunities for American companies.
Caterpillar Inc., General Electric Co., and Finland’s Wartsila Oyj, which is supplying the engines for Harvey Gulf, are stepping up their development of natural gas-fueled engines and conversion kits for the marine industry to meet coming environmental standards.
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