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Substantial discount for LNG-powered ships in the Port of Gothenburg

An infrastructure and incentives are being set in place for LNG powered ships

Ships powered by liquefied natural gas (LNG) can expect a substantial reduction in the port tariff when they call at the Port of Gothenburg in the future.

A discount will come into effect in 2015 and will continue for three years. The aim is to induce more shipping companies to switch to cleaner fuel. Magnus Kårestedt, Chief Executive at the Port of Gothenburg, said: "It has been our firm belief for a long time that LNG is the fuel of the future.

“This initiative is entirely in line with our ambition to reduce the environmental impact of shipping and create a sustainable Scandinavian freight hub."

LNG-powered ships receive a total tariff discount of 30 percent when they call at the port. The discount will apply until December 2018. In one year alone this would represent a substantial saving for ships that call at the Port of Gothenburg on a regular basis. 

There are considerable environmental benefits to be gained from using LNG in shipping and industry. Sulphur and particle emissions are reduced to almost zero, nitrogen emissions by 85-90 per cent and carbon dioxide emissions by 25 percent.

Carl Carlsson of the Swedish Shipowners' Association said: "It's not technology that is the limiting factor, it's the financial considerations. Working within the framework of the Zero Vision Tool project, we will attempt to convince other ports in the Baltic to offer the same type of support."

 

New sulphur regulations

From January 1, 2015, conditions for shipping in the Baltic and North Sea will change with the introduction of new, stricter regulations governing sulphur emissions. In response, the Port of Gothenburg will revise its port tariff.

Ships that maintain a high level of environmental performance will be recompensed. Two indexes will be applied as a basis for discounting – Environmental Ship Index, which is used by many ports around the world, and Clean Shipping Index, which is an environmental index where the freight-owners' make demands on the shipping industry.

At the same time, ships that switch from oil to LNG will receive a further discount. 

LNG terminal underway in Gothenburg

Preparations are currently being made for the construction of a terminal at the Port of Gothenburg that will supply both shipping and industry with liquefied natural gas. The terminal is part of a collaborative venture between Rotterdam and Gothenburg to build an infrastructure for LNG, an initiative that is also supported by the EU.

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