Tuesday, November 12, 2013

MARAD Announces LNG Project Grants

The US Department of Transportation’s Maritime Administration (MARAD) announced Nov. 7 that it’s providing a total of $1.4 million for two projects supporting the increased use of alternative fuels and technology in the maritime industry.

The funds are expected be used to collect information on the use of liquefied natural gas as a marine propulsion and to study the issues and challenges associated with shore side storage and fueling of LNG vessels.

MARAD says it will provide Horizon Lines with $900,000 to assist in conversion and monitoring of its vessel, Horizon Spirit, to operate on LNG. The Horizon Spirit is an 892-foot long, 115-foot wide ocean going container ship that operates between Long Beach, California, and Honolulu.

The conversion is anticipated to be completed by late 2015, according to MARAD.

The second project is a $500,000 MARAD funded LNG study conducted by the US subsidiary of Norwegian technical standards development company Det Norske Veritas to analyze the issues and challenges associated with the process of supplying fuel for ships and the landside infrastructure needed to store and distribute LNG. MARAD says it anticipates the study will be complete by spring 2014.

The two recipients were chosen via a competitive process to partner with MARAD as part of a new program to demonstrate innovative technologies and practices and share data on the results.

“Fuel-efficient ships appeal to the maritime industry for the exact same reasons that fuel-efficient cars appeal to consumers – they’re easy on the environment and their pocketbooks,” US Transportation Secretary Anthony Foxx said in a statement.