The Government of British Columbia, Canada, announced that is taking action, under the Climate Leadership Plan, to support investments by natural gas utilities, that will increase the use of LNG and renewable natural gas in the transportation, marine and other sectors and reduce greenhouse gas (GHG) emissions.
“We’re working with utilities to stimulate the use of LNG as a marine fuel in large, ocean-going ships, and to increase the supply and use of renewable natural gas,” said Energy and Mines Minister Bill Bennett. “Building the market for B.C.’s abundant supplies of natural gas offers the opportunity to achieve significant GHG emissions reductions and supports jobs and economic opportunities in British Columbia’s natural gas sector.”
Amendments to the Greenhouse Gas Reduction Regulation (GGRR) under the Clean Energy Act will enable utilities to increase incentives provided to shipping companies for the conversion of vessels to run on LNG, invest in LNG bunkering (marine fuelling) infrastructure, and increase the supply and use of renewable natural gas (RNG).
The B.C. Government explains that, converting just one ocean-going tanker, cruise ship, or container ship to run on LNG instead of heavy fuel oil will reduce GHG emissions by about 93,500 tonnes per year, equivalent to taking over 19,800 vehicles off the road. Utility investments in LNG fuelling infrastructure will help establish B.C. as a marine bunkering centre on the west coast capable of providing LNG to an increasing number of LNG vessels and leading to global reductions in GHG emissions.
Amendments to the GGRR will allow utilities to double the incentives available to convert vehicles and marine vessels to natural gas, when the new incentives go towards vehicles using 100% RNG, and enable utilities to recover the costs of acquiring and distributing RNG in rates. RNG can be used interchangeably with conventional natural gas and easily injected into the natural gas system, so the demand potential for renewable gas and the related GHG emissions reductions are significant.
“LNG for marine vessels ensures the international marine shipping industry has a cost-effective, clean-burning fuel with which to meet international emissions standards. Encouraging the development of renewable natural gas provides additional business opportunities for local waste producers, such as farms, landfills and wastewater treatment plants. These initiatives not only benefit our customers by optimizing our natural gas system year-round, they benefit all British Columbians by lowering operating costs for businesses and by reducing carbon emissions in our air” said Michael Mulcahy, president and CEO of FortisBC.
The GGRR was introduced in 2012 and already allows utilities to provide incentives for compressed natural gas and LNG in the transportation and marine sectors to reduce GHG emissions. The amendments increase the allowed expenditure limits and expand coverage of the regulation to include investments related to RNG.
Source: Government of British Columbia
