Tag: sustainability

The world’s leading sustainable biomass generation and supply business

Will Gardiner, Chief Executive Officer, Drax Group

13 April 2021

Opinion

Today we completed a transformational deal – our acquisition of Canadian biomass pellet producer Pinnacle Renewable Energy.

I’m very excited about this important acquisition and welcoming our new colleagues to the Drax family – together we will build on what we have already achieved, having become the biggest decarbonisation project in Europe and the UK’s largest single site renewable power generator as a result of us using sustainable biomass instead of coal.

The deal positions Drax as the world’s leading sustainable biomass generation and supply business – making us a truly international business, trading biomass from North America to Europe and Asia. It also advances our strategy to increase our self supply, reduces our biomass production costs and creates a long-term future for sustainable biomass – a renewable energy source that the UN’s IPCC says will be needed to achieve global climate targets.

It’s also an important milestone in Drax’s ambition to become a carbon negative company by 2030 and play an important role in tackling the global climate crisis with our pioneering negative emissions technology BECCS.

That’s because increasing our annual production capacity of sustainable biomass while also reducing costs helps pave the way for our plans to use bioenergy with carbon capture and storage (BECCS) at Drax.

Negative emissions from BECCS are vital to address the global climate emergency while also providing the renewable electricity needed for a net zero economy, supporting jobs and clean growth in a post-Covid recovery.

Inside a Pinnacle pellet mill

Inside a Pinnacle pellet mill

We already know Pinnacle well – it is one of our key suppliers and the company is a natural fit with Drax.

Our new colleagues have a wealth of operational and commercial expertise so I’m looking forward to seeing what we can achieve together.

We will benefit from Pinnacle’s scale, operational efficiency and low-cost fibre sourcing, that includes a high proportion of sawmill residues. In 2019, Pinnacle’s production cost was 20% lower than Drax’s.

Completing this deal will increase our annual production capacity to 4.9 million tonnes of sustainable biomass pellets at 17 plants in locations across Western Canada and the US South – up from 1.6Mt now.

It also expands our access to three major North American fibre baskets and four export facilities, giving us a large and geographically diversified asset base, which enhances our sourcing flexibility and security of supply.

This positions us well to take advantage of the global growth opportunities for sustainable biomass. The market for biomass wood pellets for renewable generation in Europe and Asia is expected to grow in the current decade, principally driven by demand in Asia.

Biomass wood pellet storage dome, Drax Power Station

Biomass wood pellet storage dome, Drax Power Station

We believe that with increasingly ambitious global decarbonisation targets, the need for negative emissions and improved understanding of the role that sustainably sourced biomass can play, will result in continued robust demand.

Pinnacle is already a key supplier of wood pellets to other markets with C$6.7 billion of long-term contracts with high quality Asian and European customers, including Drax, and a significant volume contracted beyond 2027.

Drax aims to leverage Pinnacle’s trading capability across its expanded portfolio. We believe that the enlarged supply chain will provide greater opportunities to optimise the supply of biomass from its own assets and third-party suppliers.

The transport and shipping requirements of the enlarged company will provide further opportunities to optimise delivery logistics, helping to reduce distance, time, carbon footprint and cost.

Train transporting biomass wood pellets arriving at Drax Power Station

Importantly – there will also be opportunities to share best practice and drive sustainability standards higher across the group.

We recognise that the forest landscape in British Columbia and Alberta is different to the commercially managed forests in the south eastern US where we currently operate.

In line with our world leading responsible sourcing policy, Drax will work closely with environmental groups, Indigenous First Nation communities and other stakeholders and invest to deliver good environmental, social and climate outcomes in Pinnacle’s sourcing areas.

We are determined to create a long-term future for sustainable biomass and deliver BECCS –  the negative emissions technology that will be needed around the world to meet global climate targets. The acquisition of Pinnacle takes us a big step forward in achieving our goals.

Read press release: Drax completes acquisition of Pinnacle Renewable Energy Inc.

 

Burns Lake and Houston pellet plant catchment area analysis

25 November 2020

Sustainable bioenergy
British Columbia, near Barriere, North Thompson River, aspen trees, dead pine trees behind infected with pine bark beetle (aka mountain pine beetle)

The eigth report in a series of catchment area analyses for Drax looks at the fibre sourcing area surrounding two compressed wood pellet plants operated by Pinnacle.

This part of interior British Columbia (BC) is unique in the Drax supply chain. Forest type, character, history, utilisation, natural challenges, logistics, forest management and planning are all very different to the other regions from which Drax sources biomass. Recently devasted by insect pest and fire damage, Arborvitae Environmental Services has produced a fascinating overview of the key issues and challenges that are being experienced in this region.

Figure 1: Catchment area map of the region [Click to view/download]

A positive response to natural disasters

Like the entire BC Interior, the area has suffered a devastating attack of Mountain Pine Beetle (MPB) damage over the last 20 years which has completely dominated every forest management decision and action. Within the catchment area, the MPB killed an estimated 157 million cubic metres (m3) between 1999 and 2014, representing 42% of the estimated 377 million m3 of total standing timber in the catchment area in 1999.  In addition, severe wildfires in 2018 burned an estimated 7.1 million m3.

These natural events have had a devastating impact on the forest resource. Harvesting increased significantly to utilise the dead and dying timber as lumber in sawmills whilst it was still viable.

Net carbon emissions in Canada’s managed forest: All areas, 1990–2017; illustrates that the impact of fires and insect damage have been far more significant, by hectares affected, than forestry activity; Chart via Natural Government of Canada

The Pinnacle pellet mills at Burns Lake and Houston were established alongside the sawmills to utilise the sawmill residues as there were no other viable markets for this material. These sawmills draw fibre from a large distance, up to 300 miles away. Therefore, the size of the catchment area in this piece of analysis is determined by the sourcing practices of the sawmills rather than the economic viability of low grade roundwood transport to the pellet mill (see Figure 1).

Damage to pine trees by Mountain Pine Beetle (MPB)

Utilising forest residues

The two mills producing high-density biomass pellets have provided an essential outlet for residue material that would otherwise have no other market and until very recently were supplied almost entirely by mill residuals. As the quantity of dead and dying timber has reduced and sawmill production has declined, the pellet mills are beginning to utilise more low-grade roundwood and forest residues (that are otherwise heaped and burned at roadside following harvest) to supplement the sawmill co-products.

Primarily State owned managed forests

The total land area in the catchment for Burns Lake and Houston is 4.47 million hectares (ha) of which 3.75 million ha is classed as forest land, 94% of the catchment area is public land under provincial jurisdiction. The provincial forest service is responsible for all decisions on land use and forest management on public land, in consultation with communities and indigenous groups, determining which areas are suitable for timber production and which areas require protection. Approximately 34% of the catchment area is not available for commercial timber harvesting because it is either non-forested or it has low productivity, and other operational challenges, or it is protected for ecological and wildlife reasons.

The Chief Forester for the province sets the Annual Allowable Cut (AAC) which determines the quantity of timber that can be harvested each year. Ordinarily this will be based on the sustainable yield capacity of the working forest area, but in recent years the MPB damage has necessitated a significant increase in AAC to facilitate the salvage of areas that have been attacked and damaged (see Figure 2).

Figure 2: Changes in Annual Allowable Cut 1980 to 2018 (Source: Nadina District FLNRORD) [Click to view/download]

The catchment area is in the Montane Cordillera ecozone and the Canadian Forest Service reports that between 1980 and 2017, the area of forest in the ecozone declined from 31,181,000 ha to 31,094,000 ha, a decline of 87,000 ha or 0.28 % of the forest area. Deforestation in the catchment area was estimated at 300 ha per year. Most deforestation in the ecozone occurred because of conversion to agriculture, as well as other contributing factors, such as mining, urban expansion and road construction (including forest roads).

The forest area is dominated by coniferous species (see Figure 3) predominantly lodgepole pine, spruce and fir (90% of the total area), with hardwood species (primarily aspen) making up just 8% of the total area.

Figure 3: Species composition of forest land in the catchment area.

Managing beetle damaged areas

The annual harvest volume was at a peak in the early part of the last decade at over 12 million m3 in 2011. This has now declined by around 4.5 million m3 in 2019 (see Figure 4) as the beetle damaged areas are cleared and replanted. The AAC and harvesting levels are expected to be reduced in the future to allow the forest to regrow and recover.

Figure 4: Annual change in harvest volume of major species

Future increases in forest growth rates

Historically, the forest area has naturally regenerated with self-seeded stands reaching a climax of mature pine, spruce, and Abies fir mixtures.  As the forest matured, it would often be subject to natural fires or other disturbance which would cause the cycle to begin again. Following the increase in harvesting of beetle damaged areas, many forests are now replanted with mixtures of spruce and pine rather than naturally regenerated. This is likely to lead to an increase in forest growth rates in the future and a higher volume of timber availability once the areas reach maturity (see Figure 5).

Figure 5: Forecast of future volume production

Timber markets in the catchment area are limited in comparison to other regions like the US South.  The scale of the landscape and the inaccessible nature of many of the forest areas limit the viability of access to multiple markets. Sawmills produce the highest value end-product and these markets have driven the harvesting of forest tracts for many years. Concessions to harvest timber are licensed either by volume or for a specific area from the provincial forest service. This comes with a requirement to ensure that the forest regrows and is appropriately managed after harvesting.

There are no pulp mills within the catchment area and limited alternative markets for the lowest grades of roundwood or sawmill residuals other than the pellet mills; consequently, the pellet mills have a close relationship with the sawmills.

Wood price trends

Prices for standing timber on public land are determined by the provincial government using results from public timber sales and set according to the species and quality of timber produced (from the highest-grade logs through to forest residuals). The lack of market diversity and challenging logistics mean that there is little competition for mill residuals and low-grade fibre. The price differential in end-product value between sawtimber and wood pellets ensures that fibre suitable for sawmill utilisation does not get processed by the pellet mill. A very small volume of larger dimension material can end up in a low value market when there are quality issues that limit the value for sawtimber (e.g. rotten core, structural defects) but this represents a very small proportion of the supply volume. There is no evidence that pellet mills have displaced other markets within this catchment area.

Read the full report: Catchment Area Analysis: Pinnacle Renewable Energy’s Burns Lake & Houston Mills.

This is part of a series of catchment area analyses around the forest biomass pellet plants supplying Drax Power Station with renewable fuel. Others in the series can be found here. 

What is biomass?

21 August 2020

Sustainable bioenergy
Illustration of a working forest supplying biomass

What is biomass?

In ecological terms, biomass refers to any type of organic matter. When it comes to energy, biomass is any organic matter that can be used to generate energy, for example wood, forest residues or plant materials.

How is biomass used?  

Biomass used and combusted for energy can come in a number of different forms, ranging from compressed wood pellets – which are used in power stations that have upgraded from coal – to biogas and biofuels, a liquid fuel that can be used to replace fossil fuels in transport.

The term biomass also refers to any type of organic material used for energy in domestic settings, for example wood burned in wood stoves and wood pellets used in domestic biomass boilers.

Biomass is organic matter like wood, forest residues or plant material, that is used to generate energy.

Where does biomass come from?

Biomass can be produced from different sources including agricultural or forestry residues, dedicated energy crops or waste products such as uneaten food.

Drax Power Station uses compressed wood pellets sourced from sustainably managed working forests in the US, Canada, Europe and Brazil, and are largely made up of low-grade wood produced as a byproduct of the production and processing of higher value wood products, like lumber and furniture.

Biomass producers and users must meet a range of stringent measures for their biomass to be certified as sustainable and responsibly sourced.

Key biomass facts

Is biomass renewable?

 Biomass grown through sustainable means is classified as a renewable source of energy because of the process of its growth. As biomass comes from organic, living matter, it grows naturally, absorbing carbon dioxide (CO2) from the atmosphere in the process.

It means when biomass is combusted as a source of energy – for example for heat or electricity production – the CO2 released is offset by the amount of CO2 it absorbed from the atmosphere while it was growing.

Fast facts

  • In 2019 biomass accounted for 6% of Great Britain’s electricity generation, more than 1/6 of the total generation of all renewable sources
  • There is about 550 gigatonnes of biomass carbon on Earth in total. Humans make up around 1/10,000th of that mass.
  • Modern biomass was first developed as an alternative for oil after its price spiked as a result of the 1973 Yom Kippur War
  • The International Energy Agency (IEA) estimates bioenergy accounts for roughly 1/10th of the world’s total energy supply

Biomass is a renewable, sustainable form of energy used around the world.

How long has biomass been used as a source of energy?

Biomass has been used as a source of energy for as long as humans have been creating fire. Early humans using wood, plants or animal dung to make fire were all creating biomass energy.

Today biomass in the form of wood and wood products remains a widely used energy source for many countries around the world – both for domestic consumption and at grid scale through power stations, where it’s often used to replace fossil fuels with much higher lifecycle carbon emissions.

Drax Power Station has been using compressed wood pellets (a form of biomass) since 2003, when it began research and development work co-firing it with coal. It fully converted its first full generating unit to run only on compressed wood pellets in 2013, lowering the carbon footprint of the electricity it produced by more than 80% across the renewable fuel’s lifecycle. Today the power station runs mostly on sustainable biomass.

Go deeper

Read next: What is reforestation and afforestation?

What is climate change?

Sustainable business
Climate change

What is climate change?

Climate change refers to the change in weather patterns and global temperature of the earth over long periods of time. In a modern context, climate change describes the rise of global temperatures that has been occurring since the Industrial Revolution in the 1800s.

What causes climate change?

While there have been natural fluctuations in the earth’s climate over previous millennia, scientists have found that current-day temperatures are rising quicker than ever due to the excessive amount of carbon dioxide (CO2) and other greenhouse gasses being released into the atmosphere.

Key climate crisis facts

An excess of CO2 in the atmosphere accentuates something called the ‘greenhouse effect’. As CO2 traps heat in the earth’s atmosphere, it warms the planet and causes a rise in average global temperature. International efforts, such as the Paris Climate Accords, are dedicated to ensuring temperatures do not rise 2 degrees Celsius above pre-industrial levels, which could lead to catastrophic conditions on the planet.

In the modern context, climate change describes the rise of global temperatures occurring since the Industrial Revolution in the 1800s.

How do humans contribute to climate change?  

Industries such as transport, agriculture, energy and manufacturing have traditionally relied on the use of coal, oil and other fossil fuels. These fuels, when combusted or used, emit large amounts of CO2 into the atmosphere, further advancing the greenhouse effect and contributing to climate change.

Human reliance and consumption of these products mean today CO2 levels are the highest they’ve been in 800,000 years.

Why are rising temperatures harmful to the planet?

Our planet has a history of experiencing periods of extreme weather conditions – for example the last Ice Age, which finished 12,000 years ago. However, the rapid rise in temperatures seen today is harmful because a hotter planet completely affects our natural environment.

A steep rise in global temperature can melt ice sheets and cause higher sea levels which can, in turn, contribute to more extreme storms and even threaten entire islands and coastal communities. As the planet warms, extreme weather events, such as bushfires could become more common, which can destroy homes, impact agriculture and degrade air quality, while entire ecosystems, habitats and animal and insect species could also be threatened by climate change. 

What can be done to mitigate the effects of climate change?

Reducing CO2 emissions is a key way of slowing down the pace of climate change. To do so, industries across the global economy must decarbonise to become less dependent on fossil fuels, such as coal and petrol, and adopt new lower carbon energy sources.

Decarbonisation will rely on a number of factors, including a technological response that sees the development and implementation of carbon neutral and carbon negative ways of creating heat, electricity and fuels, including the use of innovations such as carbon capture and storage (CCS).

There is also a need for a policy and governmental response that promotes investment in new cleaner technologies and disincentivises dirtier industries through mechanisms like the carbon tax. Countries and economies will need to work collaboratively to achieve common, climate-oriented goals that will also enable smaller scale action to be taken by individuals around the world. 

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Button: What is the grid?

In a crisis people come first

Will Gardiner, Chief Executive Officer, Drax Group

14 May 2020

Opinion

This crisis will be remembered for many things. Many are not positive, but some are inspiring. Around the world we’ve seen tremendous acts of kindness and witnessed remarkable resilience from people continuing to live, work and to support one another. The actions we are all taking as individuals, businesses and communities will not only help us get through this crisis, they will shape how we emerge from it.

At Drax we are proud of the ongoing role we’re playing in supporting the UK and its essential services, continuing to generate and supply the electricity needed to keep people healthy and the economy running.

It is what we have always done, and it is what we will continue to do.

This is possible because our people have continued to carry out their important work in these uncertain times safely and responsibly. My leadership team in the UK and US must continue to support them, and we must also support the communities they are a part of.

Employees Drax Power Station show their support and appreciation for the heroic efforts of those within the NHS by turning one of its cooling towers blue at 8pm each Thursday

Employees Drax Power Station show their support and appreciation for the heroic efforts of those within the NHS by turning one of its cooling towers blue at 8pm each Thursday

Our communities are at the core of what we do and who we are. They support our business globally and enable us to supply energy to the country. We have a responsibility to do what we can to help them through this crisis.

To do this we have put together a Covid-19 support package totalling more than three quarters of a million pounds that goes beyond just financing to make a positive impact. I’d like to highlight a few of these.

Supporting communities in Great Britain and the US

The Robinson family collect their laptop at Selby Community Primary School

The closures of schools and the need to turn homes into classrooms has been one of the biggest changes for many families. With children now depending on technology and the internet for schooling, there’s a very real chance those without access may fall behind, with a long term negative impact on their education.

We want to ensure no child is left out. So, we have donated £250,000 to buy 853 new laptops, each with three months of pre-paid internet access, and delivered them to schools and colleges local to our sites across the UK.

This has been implemented by Drax, working closely with headteachers. As one of our local heads Ian Clennan told us: “Schools don’t just provide education – they’re a whole support system. Having computers and internet access means pupils can keep in touch with their teachers and classmates more easily too – which is also incredibly important at the moment.”

In the US, we’re donating $30,000 to support hardship funds for the communities where we operate. Our colleagues in Louisiana are playing an active role in the community, and in Amite County, Mississippi, they have helped provide PPE to first responders as well as supporting charities for the families worse affected.

Helping businesses, starting with the most vulnerable

As an energy supplier to small and medium sized businesses (SMEs), we must act with compassion and be ready to help those who are most economically exposed to the crisis. To do this, we are launching a number of initiatives to support businesses, starting with some of the most vulnerable.

It’s clear that care homes require extra support at this time. We are offering energy bill relief for more than 170 small care homes situated near our UK operations for the next two months, allowing them to divert funds to their other priorities such as PPE, food or carer accommodation.

But it is also important we understand how difficult a period this is for small businesses of all kinds. Many of our customers are facing financial pressure that was impossible to forecast. To help relieve this, we have agreed deferred payment plans with some of our customers who are unable to pay in full. We have also extended current energy prices for three months for 4,000 customers of Opus Energy who have not been able to secure a new contract during this period.

The impact of this crisis will be long term, so we made a significant, two-year charitable donation to Business Debtline. A dedicated phoneline and webpage will be provided to our small businesses customers, offering free debt advice and helping them to recover for the future.

An engineer looks up at flue gas desulphurisation unit (FGD) at Drax Power Station. The massive pipe would transport flue gas from the Drax boilers to the carbon capture and storage (CCS) plant for CO<sub>2</sub> removal of between 90-95%.

An engineer looks up at flue gas desulphurisation unit (FGD) at Drax Power Station. The massive pipe would transport flue gas from the Drax boilers to the carbon capture and storage (CCS) plant for CO2 removal of between 90-95%.

Change for the future recovery

While there is still uncertainty around how the UK, the US and the world will emerge from the pandemic it is the responsibility of the whole energy industry to show compassion for its customers and to take the actions needed to soften the economic blow that Covid-19 is having across the globe.

The disruption to normal life caused by the pandemic has changed how the country uses electricity overnight. In the coming weeks we will be publishing a more in-depth view from Electric Insights showing exactly what effect this has had and what it might reveal for the future of energy.

No matter what that future holds, however, we will remain committed to enabling a zero carbon, lower cost energy future. This will mean not only supporting our people, our communities and our countries through the coronavirus crisis, but striving for a bright and optimistic future beyond it. A future where people’s immediate health, safety and economic wellbeing are prioritised alongside solutions to another crisis – that of climate change.

Climate change is the biggest challenge of our time

Will Gardiner, Chief Executive Officer, Drax Group

28 July 2019

Opinion
Drax Group CEO Will Gardiner

Climate change is the biggest challenge of our time and Drax has a crucial role in tackling it.

All countries around the world need to reduce carbon emissions while at the same time growing their economies. Creating enough clean, secure energy for industry, transport and people’s daily lives has never been more important.

Drax is at the heart of the UK energy system. Recently the UK government committed to delivering a net-zero carbon emissions by 2050 and Drax is equally committed to helping make that possible.

We’ve recently had some questions about what we’re doing and I’d like to set the record straight.

How is Drax helping the UK reach its climate goals?

At Drax we’re committed to a zero-carbon, lower-cost energy future.

And we’ve accelerated our efforts to help the UK get off coal by converting our power station to using sustainable biomass. And now we’re the largest decarbonisation project in Europe.

We’re exploring how Drax Power Station can become the anchor to enable revolutionary technologies to capture carbon in the North of England.

And we’re creating more energy stability, so that more wind and solar power can come onto the grid.

And finally, we’re helping our customers take control of their energy – so they can use it more efficiently and spend less.

Is Drax the largest carbon polluter in the UK?

No. Since 2012 we’ve reduced our CO2 emissions by 84%. In that time, we moved from being western Europe’s largest polluter to being the home of the largest decarbonisation project in Europe.

And we want to do more.

We’ve expanded our operations to include hydro power, storage and natural gas and we’ve continued to bring coal off the system.

By the mid 2020s, our ambition is to create a power station that both generates electricity and removes carbon from the atmosphere at the same time.

Does building gas power stations mean the UK will be tied into fossil fuels for decades to come?

Our energy system is changing rapidly as we move to use more wind and solar power.

At the same time, we need new technologies that can operate when the wind is not blowing and the sun is not shining.

A new, more efficient gas plant can fill that gap and help make it possible for the UK to come off coal before the government’s deadline of 2025.

Importantly, if we put new gas in place we need to make sure that there’s a route through for making that zero-carbon over time by being able to capture the CO2 or by converting those power plants into hydrogen.

Are forests destroyed when Drax uses biomass and is biomass power a major source of carbon emissions?

No.

Sustainable biomass from healthy managed forests is helping decarbonise the UK’s energy system as well as helping to promote healthy forest growth.

Biomass has been a critical element in the UK’s decarbonisation journey. Helping us get off coal much faster than anyone thought possible.

The biomass that we use comes from sustainably managed forests that supply industries like construction. We use residues, like sawdust and waste wood, that other parts of industry don’t use.

We support healthy forests and biodiversity. The biomass that we use is renewable because the forests are growing and continue to capture more carbon than we emit from the power station.

What’s exciting is that this technology enables us to do more. We are piloting carbon capture with bioenergy at the power station. Which could enable us to become the first carbon-negative power station in the world and also the anchor for new zero-carbon cluster across the Humber and the North.

How do you justify working at Drax?

I took this job because Drax has already done a tremendous amount to help fight climate change in the UK. But I also believe passionately that there is more that we can do.

I want to use all of our capabilities to continue fighting climate change.

I also want to make sure that we listen to what everyone else has to say to ensure that we continue to do the right thing.

What is LNG and how is it cutting global shipping emissions?

5 July 2019

Sustainable business
Oil tanker, Gas tanker operation at oil and gas terminal.

Shipping is widely considered the most efficient form of cargo transport. As a result, it’s the transportation of choice for around 90% of world trade. But even as the most efficient, it still accounts for roughly 3% of global carbon dioxide (CO2) emissions.

This may not sound like much, but it amounts to 1 billion tonnes of CO2 and other greenhouse gases per year – more than the UK’s total emissions output. In fact, if shipping were a country, it would be the sixth largest producer of greenhouse gas (GHG) emissions. And unless there are drastic changes, emissions related to shipping could increase from between 50% and 250% by 2050.

As well as emitting GHGs that directly contribute towards the climate emergency, big ships powered by fossil fuels such as bunker fuel (also known as heavy fuel oil) release other emissions. These include two that can have indirect impacts – sulphur dioxide (SO2) and nitrogen oxides (NOx). Both impact air quality and can have human health and environmental impacts.

As a result, the International Maritime Organization (IMO) is introducing measures that will actively look to force shipping companies to reduce their emissions. In January 2020 it will bring in new rules that dictate all vessels will need to use fuels with a sulphur content of below 0.5%.

One approach ship owners are taking to meet these targets is to fit ‘scrubbers’– devices which wash exhausts with seawater, turning the sulphur oxides emitted from burning fossil fuel oils into harmless calcium sulphate. But these will only tackle the sulphur problem, and still mean that ships emit CO2.

Another approach is switching to cleaner energy alternatives such as biofuels, batteries or even sails, but the most promising of these based on existing technology is liquefied natural gas, or LNG.

What is LNG?

In its liquid form, natural gas can be used as a fuel to power ships, replacing heavy fuel oil, which is more typically used, emissions-heavy and cheaper. But first it needs to be turned into a liquid.

To do this, raw natural gas is purified to separate out all impurities and liquids. This leaves a mixture of mostly methane and some ethane, which is passed through giant refrigerators that cool it to -162oC, in turn shrinking its volume by 600 times.

The end product is a colourless, transparent, non-toxic liquid that’s much easier to store and transport, and can be used to power specially constructed LNG-ready ships, or by ships retrofitted to run on LNG. As well as being versatile, it has the potential to reduce sulphur oxides and nitrogen oxides by 90 to 95%, while emitting 10 to 20% less CO2 than heavier fuel alternatives.

The cost of operating a vessel on LNG is around half that of ultra-low sulphur marine diesel (an alternative fuel option for ships aiming to lower their sulphur output), and it’s also future-proofed in a way that other low-sulphur options are not. As emissions standards become stricter in the coming years, vessels using natural gas would still fall below any threshold.

The industry is starting to take notice. Last year 78 vessels were fitted to run on LNG, the highest annual number to date.

One company that has already embraced the switch to LNG is Estonia’s Graanul Invest. Europe’s largest wood pellet producer and a supplier to Drax Power Station, Graanul is preparing to introduce custom-built vessels that run on LNG by 2020.

The new ships will have the capacity to transport around 9,000 tonnes of compressed wood pellets and Graanul estimates that switching to LNG has the potential to lower its CO2 emissions by 25%, to cut NOx emissions by 85%, and to almost completely eliminate SO2 and particulate matter pollution.  

Is LNG shipping’s only viable option?

LNG might be leading the charge towards cleaner shipping, but it’s not the only solution on the table. Another potential is using advanced sail technology to harness wind, which helps power large cargo ships. More than just an innovative way to upscale a centuries-old method of navigating the seas, it is one that could potentially be retrofitted to cargo ships and significantly reduce emissions.

Drax is currently taking part in a study with the Smart Green Shipping Alliance, Danish dry bulk cargo transporter Ultrabulk and Humphreys Yacht Design, to assess the possibility of retrofitting innovative sail technology onto one of its ships for importing biomass.

Manufacturers are also looking at battery power as a route to lowering emissions. Last year, boats using battery-fitted technology similar to that used by plug-in cars were developed for use in Norway, Belgium and the Netherlands, while Dutch company Port-Liner are currently building two giant all-electric barges – dubbed ‘Tesla ships’ – that will be powered by battery packs and can carry up to 280 containers.

Then there are projects exploring the use of ammonia (which can be produced from air and water using renewable electricity), and hydrogen fuel cell technology. In short, there are many options on the table, but few that can be implemented quickly, and at scale – two things which are needed by the industry. Judged by these criteria, LNG remains the frontrunner.

There are currently just 125 ships worldwide using LNG, but these numbers are expected to increase by between 400 and 600 by 2020. Given that the world fleet boasts more than 60,000 commercial ships, this remains a drop in the ocean, but with the right support it could be the start of a large scale move towards cleaner waterways.