BC Ferries gets new funding to soften fare hikes

THE BRITISH COLUMBIA GOVERNMENT is pumping CAD 500 million (about US$369 million) of new funding into BC Ferries. The aim is to lower fare increases for users of its coastal ferry service.

“Every day, people use BC Ferries to get to work, and visit family and friends, as well as plan vacations,” said B.C. Premier David Eby. “We know the cost of everything continues to go up due to global inflation, but by acting now, we can prevent double-digit fare increases from hitting people who depend on our ferries.”

A recent submission to the BC Ferries commissioner coupled with the impacts of global inflation over the past 18 months made it clear BC Ferries users could face fare increases of 10.4% a year for the four-year period of 2024 to 2028, says an announcement from the premier’s office. With the CAD 500 million investment, the goal is to keep annual average fare increases below 3% a year. Final fare increases will be determined by the BC Ferries commissioner.

Vessel Electrification

The increase in core costs like fuel, along with higher inflation are factors in driving up overall costs for BC Ferries, says the provincial government. The $500 million will also support greenhouse-gas-emission reduction through electrification of vessels and other initiatives. This will green the fleet and operations. Businesses will also benefit since small businesses rely on BC Ferries for the movement of goods through freight transport.

The BC Ferries commissioner is in the process of determining, by March 31, 2023, the preliminary annual fare increases (price cap) for the next four-year period starting April 1, 2024. The final annual fare increases for the next performance term will be published by September 30, 2023.

Keeping Fares Affordable

The premier’s announcement follows other actions the B.C. government has taken to improve service and keep fares affordable. In spring 2019, the province added 2,700 round trips. It also reduced fares by 15% on smaller and northern routes, froze fares on the major routes, and brought back free passenger travel for seniors, Monday through Thursday.

“This significant funding from the province supports necessary service enhancements and infrastructure investments while keeping fares affordable for the traveling public and our commercial customers, said BC Ferries interim president Jill Sharland. “We are thankful we have a government partner who understands the complexity of running one of the largest ferry systems in the world and is as committed as we are to providing safe and reliable service to the people and communities of B.C.’s west coast.”

Is the future of renewable LNG to be found on the farm?

OVER A YEAR AGO, New Orleans headquartered offshore service vessel operator, Harvey Gulf International Marine began to operate one of its tri-fuel vessels exclusively on battery power and renewable liquefied natural gas (RLNG) made using “recaptured swine and dairy farm gas from pig and cows.” While there are altogether too many terms used to describe various forms of renewable LNG it seems like Japan’s Mitsui O.S.K. Lines, Ltd. (MOL) is about to follow a similar track. It is looking to trial the use of liquefied bio-methane (LBM) derived from cattle manure in LNG-fueled vessels.

It has signed a Memorandum of Understanding (MoU) with LBM producer Air Water Inc. to carry out a study that will confirm that LBM, which is often referred to as bio-LNG, can be transported, supplied, and used without problems using existing shore and onboard equipment.

Air Water produces the LBM from cattle manure in the Tokachi region of Hokkaido, Japan, and the joint study will be conducted as part of an LBM technology research and development program approved by Japan’s Ministry of the Environment.

The goal is to use LBM in an LNG-fueled MOL Group coastal vessel in the first half of FY2023. While LBM (or bio-LNG) is widely seen as key to “extending the runway” for existing LNG-fueled tonnage to meet tightening GHG-reduction targets, this will be the first use of LBM as a marine fuel in Japan.

MOL says that, while LNG-fueled vessels are an effective way to achieve low carbon emissions and it is accelerating their deployment, it is taking initiatives aimed at an early introduction of the use of bio-methane and synthetic-methane.

While LNG fuel is expected to reduce carbon dioxide (CO2) emissions by about 25% compared to conventional fuel oil, a further reduction can be expected through the partial use of LBM, a carbon-neutral energy source. Because the main component of both LBM and LNG is methane, current LNG supply chains can be used, making LBM an effective solution to achieve lowcarbon and decarbonized ship operations.

LBM is made by liquefying bio-methane generated from dairy-owned biogas plants, at about -160°C, which is the same temperature that fossil LNG is transported at, then separating and refining its main component, methane. Methane can be compressed to 1/600th of its volume by liquefying it, so enabling its transportation at scale. It is also a carbon-neutral domestic energy source because it is made from cattle manure.