LNG use on Washington State Ferries Could Save Millions over Time.

An LNG-fuelled ferry would have significant environmental and economic benefits, according to a recently feasibility study for Washington State Ferries. Architectural and marine engineering firm, The Glosten Associates, recently completed the feasibility study for Washington State Ferries (WSF) on converting its 144-car ferry design to liquefied natural gas (LNG) propulsion. 

Glosten's study concluded that the conversion is both technically feasible and cost effective, although technical and regulatory challenges remain. The study examined design, economic, regulatory, and environmental issues. 

The operational savings for a single vessel are estimated to be between $900,000 and $1.25 million per year, after an upfront capital cost premium of $8.5 million to $10 million. Switching to natural gas fuel will significantly reduce emissions of nitrous oxides (NOx), sulfur oxides (SOx), particulate matter, and carbon dioxide (CO2). These greenhouse gases have been identified by the U.S. Environmental Protection Agency (EPA) as significant factors in harming human health, including respiratory illnesses, as well as damaging to the environment. 

Glosten’s design was formally reviewed by the United States Coast Guard (USCG). USCG provided extensive feedback as well as a written response, showing their willingness to work with owners early in developing a case-by-case design basis until official rules are developed. The USCG response provides WSF with a regulatory basis from which to advance the project design. This is an important result, as the lack of USCG regulations is often cited as a primary risk to vessel owners interested in reaping the benefits of LNG fuel conversion.

Overall, this looks very promising for the nation's largest ferry system to save on operating costs. The initial investment is pretty sizeable, however saving nearly a million dollars per year in fuel will do a lot to shrink the state budget. We think that this would be a great use of federal funds as opposed to some of the other job creation projects that have been touted - such as the high-speed rail project the current administration is pushing.

Click herefor the full Glosten Associates report.