Funding programme for the use of LNG as a marine fuel

The Federal Ministry of Transport and Digital Infrastructure (BMVI) is funding the equipping and retrofitting of seagoing vessels to use liquefied natural gas (LNG) as a marine fuel. The goal of the funding programme is to promote the use of LNG in German maritime transport. Funding is made available from the Mobility and Fuels Strategy.

As a marine fuel, LNG contributes to the reduction of greenhouse gas and air pollutant emissions. As opposed to conventional, oil-based marine fuels, LNG produces zero sulphur oxide emissions (SOx). Nitrogen oxide emissions (NOx) are reduced by up to 90 per cent, and particle emissions by approximately 98 per cent compared to conventional fuels. The guideline on grants for equipping and retrofitting seagoing vessels for the use of LNG as a marine fuel from 17 August 2017 advances the adoption of liquefied gas (LNG) in German maritime transport. The aim of the guideline is to increase demand for LNG as a marine fuel in Germany, and thus provide incentives for building the requisite LNG supply infrastructure in ports.

Project proposals can be submitted on each current call for proposals under the guideline. Funding will be granted in the form of non-repayable subsidies for the partial financing of extra investment costs involved in equipping and retrofitting of seagoing vessels for LNG operation. The target of the aid is either the equipping of newly-constructed ships or the retrofitting of existing seagoing ships for the use of LNG as a marine fuel either in pure gas or in so-called dual-fuel operation for the main drive. If the equipping or retrofitting for the main drive is funded, equipping or retrofitting auxiliary machinery for LNG operation also qualifies for funding. Companies owning a ship or planning a new ship build, as well as public sector entities and institutions are eligible to apply. Details can be found in the guideline as well as the in the relevant current funding call.

The Federal Government’s Mobility and Fuels Strategy (MFS) is the central platform for shaping the energy transition in the transport sector and thereby for achieving energy and climate protection policy goals.
The NOW National Organisation Hydrogen and Fuel Cell Technology is tasked with supporting the BMVI in further developing the MFS as well as the concrete funding measures for its implementation, such as the funding programme for the equipping and retrofitting of seagoing ships for the use of LNG as a marine fuel.