Vanguard Renewables has officially published the results from a new white paper called “How the IMO’s Net-Zero Framework Can Power American Industry,” authored by its CEO Mike O’Laughlin.
Going by the available details, this particular paper was structured to outline how the United States could very well benefit, moving forward, from the International Maritime Organization’s (IMO) upcoming Net-Zero Framework.
IMO regulations, for better understanding, are slated to go into effect from October. Once that happens, they will establish annual greenhouse-gas intensity limits for large vessels, while simultaneously introducing a market-based measure that prices emissions above those limits.
This translates to an exit for fragmented regional policies that, on their part, will be replaced by a unified global standard.
“The International Maritime Organization’s Net-Zero Framework could unify global shipping regulations and unlock trillions in economic value,” said Mike O’Laughlin, CEO of Vanguard Renewables.
Next up, Vanguard’s report discovered that one of the most promising pathways to meeting IMO’s targets is bio-LNG, which happens to be a maritime fuel derived from renewable natural gas (RNG). The stated fuel is markedly derived from manure, food waste, and landfills, enabling RNG to serve as the feedstock for bio-LNG.
All in all, when methane abatement is properly credited, bio-LNG could achieve very low, and at times even negative, lifecycle carbon intensity.
Keeping that in mind, US is poised to lead that segment, considering it is responsible for upto 30-35% of global RNG production and 3 million miles of natural gas pipelines,
Almost like a ripple effect of it, meeting maritime fuel demand could very well generate $2-$3 trillion in cumulative GDP through 2050. This will be likely achieved alongside $105-$185 billion in new agricultural revenues and up to 680,000 new jobs.
Having referred to the substantial potential in play here, we must also acknowledge the fact that, in order to realize it all, US must develop a comprehensive and strategically-viable plan.
For instance, it would need to achieve methane abatement recognition in lifecycle scoring, something which makes it possible for bio-LNG to complement LNG, and at the same time, cut down on fleet carbon intensity.
Next up, the relevant players would need to bring book-and-claims systems, all for the purpose of connecting inland RNG production to coastal bunkering. Such a mechanism should eliminate any requirement for physical co-movement to unlock a more scalable brand of logistics.
Another detail understood to be a critical cog of this effort is going to be policy clarity. You see, final structure of the IMO rule will determine LNG’s viability in the future fuel mix. We get to say so because, without lifecycle credit, LNG faces rising compliance costs and a weakened investment case.
Founded in 2014, Vanguard Renewables’ rise up the ranks stems from building, owning, and operating on-farm anaerobic digesters that convert food, beverage, and agricultural waste into pipeline-ready renewable natural gas. The company, thanks to this very infrastructure, is striving to reduce greenhouse gas emissions at scale, while simultaneously supporting critical domestic energy infrastructure and regenerative agriculture for America’s farms.
Vanguard’s excellence in what it does can also be understood once you consider it has, thus far, recycled 945,557 tons of food waste, generated 885,936 MMBtu of renewable gas, as well as mitigated 608,378 tons of COâ‚‚e.
The scale of company’s operations can be be further contextualized by the fact it currently has more than 50 active projects in its portfolio.
“With unmatched renewable natural gas production capacity, existing infrastructure, and a proven ability to scale, the U.S. is uniquely positioned to lead,” said O’Laughlin. “It’s a once-in-a-generation opportunity, but realizing it will require decisive action, strategic implementation, and further investment across U.S. sectors involved in production and delivery infrastructure.”
