Wartsila has formed a coalition called SEA/LNG with Carnival Corporation, DNV GL, Engie, ENN Group, GE Marine, GTT, Lloyds Register, Mitsubishi, NYK Line, Port of Rotterdam, Qatargas, Shell Downstream and Tote to accelerate the widespread adoption of LNG as a marine fuel.
Each company has committed to mutually agreed human resources, data analysis and knowledge sharing to support SEA/LNG initiatives.
The coalition's main areas of focus are to support the development of LNG bunkering in major ports, educating stakeholders as to the risks and opportunities in the use of LNG fuel, and developing globally consistent regulations for cleaner shipping fuels.
Wartsila Marine Solutions' flow and gas solutions vice president Timo Koponen said SEA/LNG was a "strong coalition" combining the expertise of major fleet owners, classification societies, port facilities, and energy experts.
"Wartsila contributes its vast experience and know-how in gas driven propulsion systems and the entire gas value chain," Koponen said.
"By working together, we plan to overcome the challenges and speed the general acceptance of LNG.
"Having been a pioneer in the use of LNG as a marine fuel, and a developer of major technologies facilitating the adoption of LNG fuel, it is natural that Wartsila supports wholeheartedly the aims of the SEA/LNG coalition."
The incentives are mainly centred around the significant environmental advantages for shipping compared to heavy fuel oil (HFO), the predominant fuel used today.
By comparison with HFO, using LNG cuts nitrogen oxide emissions by about 85% and sulphur oxide emissions are almost completely eliminated since natural gas contains no sulphur, and particle production is practically non-existent.
Woodside's chief operating officer Michael Utsler also highlighted these incentives when announcing a five-year charter contract with SIem Offshore to deliver Australia the southern hemisphere's first LNG-powered marine support vessel early next year.
On the shipping side, the driver is new United Nations' MARPOL regulations on sulphur dioxide emissions from ships which are due to be implemented in 2020, along with COP21 carbon dioxide-related commitments.
Utsler told Energy News at LNG18 that the vessel Woodside contracted will work on the North West Shelf, supporting the company's operations across the NSW and Pluto, but longer term the oiler is eyeing the prospect of building out a chain of domestic LNG utilisation across the Northern Territory-Western Australia coastline via marine bunkering.
He said another incentive for retrofitting in the LNG duel-fuelling world was that the technology is fast becoming cost competitive, making it worthy of consideration for the Perth major.
At an investor and analyst tour of the NWS and Pluto LNG facilities in Karratha recently Woodside executives noted a significant LNG market opportunity‎, particularly with WA's iron ore industry.
Woodside reportedly identified an LNG market opportunity of about 500,000 tonnes per annum (70-80 million cubic feet per day) in displacing distillate in mining vehicles, with a potential of roughly two million tonnes per annum (300MMcfpd) opportunity in iron ore trains alone.
Sydney Ferries is due to commission a dual fuel ferry when Woodside will bring its new vessel to Australia, which will start the ball rolling on the key issue to utilising LNG as a marine fuel: bunkering.
RBC Capital Markets director and oil and gas analyst Ben Wilson said Woodside made clear during the NWS-Pluto tour that, more broadly, the global market opportunity for LNG to displace heavy fuel oil in marine transport and distillate in heavy vehicle transport was "immense".
The total addressable market for marine transport is pitched at 700MMtpa and heavy vehicle transport at 1400MMtpa.
"Even capturing a fraction of these markets would present material upside to recent LNG consumption levels of around 250MMtpa," Wilson said.
Wartsila has also teamed up with a consortium of shipping groups to to develop a Kamsarmax-sized bulk carrier.
The landmark design will be the first LNG-fuelled cargo ship capable of full-range operations, transporting more than 80,000 dry weight tonnes of product in a single go.
