A groundbreaking Life Cycle Assessment (LCA) study conducted by LR, Knutsen, HD KSOE, and HHI under a Joint Development Project (JDP) highlights the critical impact of alternative fuels, green steel, and renewable energy in reducing greenhouse gas (GHG) emissions throughout a vessel's entire life cycle, according to LR's release. The six-month study, initiated in June 2023, focused on a newbuild LNG Carrier of 174,000 m3, examining carbon emissions from raw material extraction to shipbuilding, through operation, and to demolition, recycling, and waste disposal.
The study underscores that the operational period contributes the majority of emissions during a vessel's life cycle, with potential reductions of approximately 90% through the adoption of zero- or low-carbon fuels. Notably, 79% of GHG emissions in the overall operations stem from ship operations (tank-to-wake), while 21% are attributed to mining and transport (well-to-tank) of fuels, emphasizing the positive impact of low- or zero-carbon fuels on emissions reduction.
Additionally, the study reveals that introducing green steel—characterized by low or zero GHG emissions during manufacturing—during the shipbuilding stage (gate) could significantly reduce GHG emissions. Furthermore, the use of renewable energy at the yard level could result in a GHG emissions reduction of approximately 60%.
The comprehensive analysis considers all emissions (scope 1, 2, and 3) associated with the vessel throughout its life cycle. Scope 1 involves direct emissions from shipbuilding and operation, Scope 2 covers indirect emissions related to energy, water, and steam, and Scope 3 encompasses both upstream and downstream indirect emissions.
LR Chief Commercial Officer Andy McKeran highlighted the study's industry-first status and its alignment with evolving IMO regulations, especially in disclosing Scope 3 emissions. The study's methodology is expected to set a baseline for new construction vessels and serve as a benchmark for comparing life cycle emissions across LNG carriers.