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World - World Bank leaves LNG out in the cold [Gas in Transition]

The World Bank’s decision to pick winners – ammonia and hydrogen – risks leaving other solutions for decarbonising marine transport out in the cold. [Gas in Transition, Volume 1, Issue 2]

April saw a potentially devastating intervention by the World Bank into the debate surrounding the role of LNG in the decarbonisation of shipping. It came at the almost the same time as the publication of the 2nd Life Cycle GHG Emission Study on the Use of LNG as Marine Fuel, a study conducted by consultants Sphera (formerly Thinkstep) and conducted on behalf of industry bodies SEA-LNG and SGMF (the Society for Gas as a Marine Fuel). In its report, The Role of LNG in the Transition Toward Low and Zero-Carbon Shipping, the World Bank argues that LNG should play only a limited role in shipping decarbonisation, and will not be either a significant ‘temporary’ fuel nor a ‘transitionary’ fuel. This runs directly counter to LNG industry hopes that the fuel can play a key role in early partial decarbonisation of shipping, thereby creating a new source of LNG demand, and a role in full decarbonisation through the combined use of carbon offsetting and bio or synthetic methane. The bank went further to recommend that governments move to end support for the deployment of LNG a...

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