1. B.C. Ferries looks for ways to slash fuel costs;
Move to natural gas could save big bucks
Darrell Bellaart
Converting vessels to natural gas could cut B.C. Ferries's fuel costs in half, says new
report.
The ferry corporation submitted its Fuel Strategies plan for the year ending March 31,
2013 to the B.C. Ferry Commissioner in late October.
B.C. Ferries was ordered by the commission early last month to report what actions it
has taken to date and what plans exist to rein in fuel costs. Options listed in the report
range from installing real-time fuel consumption gauges in vessels through tapping into
wind and solar power. The option with the most promise is liquefied natural gas.
Caught in the squeeze between replacing its aging fleet and rising fuel costs, B.C.
Ferries had asked the commission for fare increases of 8.23 per cent per year, but last
month the commissioner capped increases at around four per cent. At the same time, it
ordered Ferries to produce the fuel cost-control report.
B.C. Ferries has made progress cutting fuel costs, by purchasing fuel through open
bidding, by using fuel more judiciously and through other penny-pinching initiatives
across its fleet. Bigger savings may be achieved by switching to liquefied natural gas,
which costs half that of diesel, and is considerably more environmentally friendly.
It spent $121 million on fuel in fiscal 2011-12, and is now considering switching three
Spirit-class ships to LNG by 2016.
If so, it has the support of the Greater Nanaimo Chamber of Commerce, which met
Wednesday to discuss the report.
"Anything that's going to save costs, while decreasing the impact on the environment, is
a good thing," said chamber chairman Mike Delves.
"Connectivity to the Island is important. Ferries are our highway, so anything they can
do to reduce costs, while reducing the impact on environment, that's a win."
Future options being considered to cut fuel use, fleet-wide, range from changes to how
vehicles are loaded through use of special hull coatings to reduce friction, and variable-
speed drive systems.
Natural gas is in abundant supply, costs about 50 per cent of diesel and reduces carbon
dioxide, sulfur and other airborne emissions considerably when it is burned.
It is already used on 15 Euroean passenger vessels, with another 30 in the works.
B.C. Ferries "is currently conducting a preliminary assessment of its existing fleet for
conversion opportunities," the report states.
"We will be considering LNG conversions for the Spirit of British Columbia, Spirit of
Vancouver Island and the Queen of Capilano as these ships come due for their midlife
upgrades," said Deborah Marshall, B.C. Ferries spokeswoman, by email.
"We still have to do technical feasibility studies and business cases to ensure these
projects are sound financially. I do want to stress that no decisions have been made at
this point for LNG conversions."
Should it happen, conversions would occur in 2015 and 2016, by a tendering process.
Dual-fuel options are also being considered for some vessels, according to the report.
B.C. Ferries is also looking at other emerging technologies, including electric, hydrogen
fuel cell, solar and wind power, according to the report.
Nanaimo Mayor John Ruttan supports B.C. Ferries "for aggressively seeking every
means available to reduce operational costs, and I would suggest that converting to
LNG, a fuel that we have in abundance in British Columbia, is a significant step in the
right direction," he said by email.
The Ferries Commission is responsible for safeguarding the public interest, by
controlling fare increases.

2. The report gives the commission a benchmark to measure how efficiently the publicly
owned company is operating.
"It's really setting a baseline in terms of their strategy going forward," said B.C. Ferries
Commissioner Gord Macatee.
"They've set some targets for reducing volumes, purchasing discounts, conversion to
other types of fuel like LNG, (and) service adjustments that may affect total fuel
requirements . . . So this is the start of the process."
It will be worth looking at again a year from now to see how close the company has
come to reaching any of its targets, he said.
Gary Coons, New Democrat B.C. Ferries critic, could not be reached for comment.
FUEL FACTS, FIGURES FOR B.C. FERRIES CORPORATION
$121.1 million Cost of marine diesel fuel purchased by B.C. Ferries fiscal 2011-12
118.8 million Litres of fuel purchased. Down 3%, or 3.8 million litres, from 2003-04
50% Approximate savings liquefied natural gas would bring to fuel ferries compared with
diesel. Similar savings will be achieved using cable ferries on such routes as Buckley
Bay to Denman Island, starting in 2014.
15 Number of European vessels now operating with LNG fuel. Another 30 projects have
been announced or are underway.
Nanaimo Daily News
Thurs. Aug. 15 2013