Gasum to supply LNG to MSC Cruises – bunkers LNG in Iceland to PONANT

2023-07-02T17:12:41+00:00 July 2nd, 2023|Environment|

Gasum and the MSC Group’s Cruise Division have signed a long-term agreement for the supply of LNG to the new flagship, ‘MSC Euribia’, as well as a Letter of Intent (LoI) to co-operate on the supply of synthetic e-LNG made with renewable energy.

This initiative is part of MSC Cruises’ strategy to achieve net zero greenhouse gas emissions from its marine operations by 2050.

Nordic energy company, Gasum and MSC Cruises, have signed a Letter of Intent (LoI) to secure MSC’s access to liquefied synthetic gas, or e-LNG, which is produced using hydrogen, created by hydrolysis with renewable energy and captured CO2.

Gasum and MSC Cruises are creating an actionable roadmap for cutting emissions in MSC’s cruise operations with sizeable volumes of several thousand tonnes of e-LNG starting in 2026.

The companies also signed a long-term agreement on the delivery of LNG to ‘MSC Euribia’.

Using LNG removes nearly all sulphur oxide and particle emissions, greatly reduces nitrogen oxide emissions and significantly lowers GHG emissions.

In addition, LNG technology on board enables MSC Cruises to switch at any time to fully renewable liquefied biogas (bio-LNG) or synthetic gas (e-LNG) in order to reach GHG reductions of up to 100%.

‘MSC Euribia’ recently demonstrated that emissions neutral cruising is possible today by sailing a first ever net zero GHG emissions cruise voyage benefiting from the emissions reductions allowed by liquefied biogas procured by Gasum.

The ship sailed for four days from Saint-Nazaire in France to Copenhagen, Denmark utilising bio-LNG with a mass-balance approach, the most environmentally efficient method of delivering the benefits of renewable biogas.

MSC Cruises purchased over 400 tonnes of bio-LNG from Gasum to show its commitment to the deployment of drop-in renewable fuels and energy transition measures towards the pioneering net zero gas emissions voyage.

“We are delighted to be partnering with Gasum on our journey to net zero greenhouse gas emissions. Securing a reliable supply of LNG and e-LNG is of critical importance to our de-carbonisation efforts, and the LOI and long-term agreement that we have announced today are significant steps on that journey.

“Partnering with Gasum will enable us to access new and cleaner fuels needed to make net zero cruising a reality. We need more suppliers like Gasum to step up and support our industry with its environmental targets. We are ready and waiting to buy more of these new fuels,” Linden Coppell, Vice President of Sustainability and ESG for MSC Cruises, said.

“As an alternative fuel supplier dedicated to the energy transition, Gasum is proud to offer support to MSC Cruises, a major maritime player, in their quest to improve the environmental footprint of their operations.

“At the same time MSC Cruises is supporting the development of the most promising alternative fuel by proving a demand for it. This LOI on e-LNG is a landmark agreement for the shipping industry as it demonstrates that e-LNG will be available to the maritime transport sector within a short timeframe. We are also very happy about the long-term LNG supply agreement which we believe is the start of long-lasting cooperation”, Mika Wiljanen, CEO of Gasum, added.

In addition, on 21st June, 2023, Gasum extended its LNG bunkering network by supplying the fuel to a PONANT cruise vessel at Reykjavik, Iceland.

During the first LNG bunker operation to be performed in Iceland, Gasum’s chartered LNGBV ’Coral Energy’ delivered LNG and liquefied biogas (LBG) to PONANT’s icebreaking cruise vessel ’Le Commandant Charcot’.

In addition to the almost complete elimination of local pollutant emissions already achieved by using LNG, the use of LBG reduces the carbon footprint of cruising significantly.

Gasum’s biogas cuts carbon emissions on average by 90% when compared with traditional fossil fuels, the company claimed.

The company said that its aim was to bring seven terawatt hours of renewable gas annually to market by 2027.  By achieving the goal, this would mean a yearly cumulative carbon dioxide reduction of 1.8 mill tonnes for its customers, the company claimed.