Natural gas and bio methane as fuel for transport a. makinen

1. Responsible traffic.
Bravely together.
LNG for Maritime Transport
- Finnish perspective
Dr. Anita Mäkinen
Workshop on "Natural gas and biomethane as fuel for Transport, TEN-T days
Riga, Latvia 23 June 2015

2. Finnish Transport Safety Agency
LNG for Maritime Transport
Content
• Why is it beneficial to use LNG as a fuel?
• National LNG Action Plan for shipping 2013 – 2017
• State Aid in Finland to promote environmentally friendly shipping
- State aid for vessels
- State aid for LNG infrastructure
• LNG fuelled ships
• Ports/terminals for LNG bunkering
• Summary
24.6.2015 2

3. Finnish Transport Safety Agency
WHY?
IMO and EU sulphur regulations
24.6.2015 3
IMO Study
on fuel availability (0.5 %)
2018
?
(0.1 %)
SECA
Reg.

4. Finnish Transport Safety Agency24.6.2015 4
Emissions from alternative fuels
(SOX, NOX, CO2, PM)
2000
4000
6000
8000

5. Finnish Transport Safety Agency
LNG Action Plan for shipping 2013 – 2017
24.6.2015 5
The Action Plan is prepared under the leadership of the Finnish Ministry of
Transport and Communications is aimed at promoting the use of liquefied
natural gas (LNG) in shipping on the basis of the following guidelines:
• focus resources on providing LNG bunkering in Finland, taking into
consideration synergies with domestic industry and heavy vehicles, and the
need for an EU-wide LNG infrastructure;
• examine the use of financial incentives, such as investment aid and
guarantees for ship acquisitions, in the construction of LNG infrastructure
and procurement of LNG-powered ships; and
• work actively at international level (IMO, EU and HELCOM) to promote
the use of LNG as ship fuel, including efforts to establish LNG infrastructure
and draft the associated regulations and guidelines, particularly for LNG
bunkering.
• The Action Plan is quite detailed in activities needed to promote the use of
LNG.

6. Finnish Transport Safety Agency
Investment aid scheme for environmentally
friendly vessels in Finland
24.6.2015 6
Background
In Finland, we have considered that encouraging early investments in green
shipping will benefit both the environment and help the industry to maintain its
competitiveness.
• November 2010 – Aid scheme for new-builds (SA.32118)
• March 2013 – Amended scheme to include aid for early adaptation and for
retrofitting operations (SA.35686)
• Granting authority: Ministry of Transport and Communications

7. Finnish Transport Safety Agency
Aims of the environmental investment aid
24.6.2015 7
• To encourage ship-owners to make environmentally friendly
investments
• To speed up commercial use of environmentally friendly
technology
• To simplify the adaptation to new emission requirements
- Especially SOx emissions

8. Finnish Transport Safety Agency
Main features of the environmental
investment aid
• Incentive effect
o No binding contract before applying for the aid
o “5 years requirement” in calculating the eligible costs of the
investment
• Maximum aid intensities from 15% to 70%
o The size of the company
o New build or retrofit investment
o Max. aid per vessel EUR 30 million
o Each individual aid exceeding EUR 7.5 million shall be notified to
the Commission
• Only for vessels under the Finnish flag

9. Finnish Transport Safety Agency
Investment aid for retrofitting operations to
vessels currently in use
• Scrubbers, MGO conversions, LNG conversions
• Investments needed to be completed before 1 January 2015
o New SOx regulations entered into force
o Aid scheme in force only until 31 December 2014
• 5-year requirement
• Eligible costs must be a calculated net of any operating benefits
and operating costs related to the extra investment for
environmental protection during the first 5 years of the
investment

10. Finnish Transport Safety Agency
Granted environmental investment aid
• New builds, EUR 30 million
• M/S Viking Grace (2013), EUR 28 million (SA.33382)
• Dual-fuel diesel engines that use LNG as main fuel
http://www.vikinggrace.com/
• M/S Meri (2012), EUR 2 million
• Special purpose vessel able to use 100% bio-oil
http://www.meriaura.fi/en/special_purpose_vessels/meri
• Retrofitting operations, approx. EUR 20 million
• 1st call for applications: EUR 7.28 million / 13 vessels
• 2nd call for applications: EUR 12.62 million / 45 vessels

11. Finnish Transport Safety Agency24.6.2015 11
LNG fuelled ships
• Viking Grace (2013)
o Trafficking between Turku – Stockholm
o Bunkering only in Sweden from Seagull bunker vessel
• Coast Guard vessel”Turva” (2014)
o Bunkering experience in many Finnish ports
• New Icebreaker (2015) for Arctia Shipping
o First LNG fuelled ice breaker in the world
• TallinkGroup (2017)
o Helsinki – Tallinn ro-ro ferry
with 2800 passengers
• Container ship’s fleet

12. Finnish Transport Safety Agency
Investment aid for LNG infrastructure
• The aim is to create a network of LNG terminals to enable large-scale use of LNG in
maritime transportation
• Scheme adopted in Oct 2013
• EU notification under Art. 107(3)c of the TFEU
• Funding: EUR 123 million
• Granting authority: Ministry of Employment and the Economy
• Investment aid for LNG terminal
• Max aid intensity 40 %
• Investment aid for LNG infrastructure granted in 2014:
Tornio 33.2 million €
Pori Tahkoluoto 23.4 million €
Rauma 8.6 million €
Kotka/Hamina 28 million €

13. Finnish Transport Safety Agency
Finnish Ports and LNG availability
24.6.2015 13
Import
Export
Port of HaminaKotka (TEN-T core port) –
in autumn 2018
Port of Helsinki (TEN-T core port)
Port of Turku, Pansio (TEN-T core port) –
1 st stage ín January 2017
Port of Pori, Tahkoluoto – in 2016
Port of Rauma – in 2016
Port of Tornio, LNG Manga Ltd - in
2017
Finngulf LNG: Large scale import terminal
of 340 000 m3 -> two: larger in Finland
(Inkoo or Porvoo) and smaller in Estonia
+ Baltic connector to connect these two

14. Finnish Transport Safety Agency
Summary on activities in Finland to promote
LNG for Maritime Transport
24.6.2015 14
• Governmental aid schemes for LNG fuelled ships and infrastructure
• National LNG Action Plan 2013 - 2017
• Some LNG fueld ships already trafficking – more in the pipeline
• LNG infrastructure in ports and terminals under development
• Finland is ready to implement the DIRECTIVE 2014/94/EU
on the deployment of alternative fuels infrastructure concerning
the use of LNG for Maritime Transport!

15. Responsible traffic.
Bravely together.
Finnish Transport Safety Agency
Kumpulantie 9, 00520 Helsinki
PO Box 320, FI-00101 Helsinki, Finland
Telephone +358 29 534 5000
www.trafi.fi
Thank you for your attention!