Norway’s Hoegh LNG saw CO2 emissions from its fleet of floating storage and regasification units and LNG carriers rise in 2023 as several of its FSRUs were quickly put into service in northern Europe.
In its sustainability report — published on Friday — Hoegh LNG head of sustainability Madeleine Hjemmen Storoy said the company saw an increase in its Scope 1 emissions in 2023.
These rose to 946,948 tonnes of CO2 equivalent (tCO2e) in 2023 from 813,461 tCO2e in 2022.
Hoegh LNG said the increase brings it more in line with normal operation for its fleet — which now numbers 10 FSRUs and three LNG carriers — compared to 2022 when four of its vessels spent time in the yard undergoing technical modification works.
The company brought three new FSRU-based import terminals in 2023 — two in Germany and one in France.
Hoegh LNG also detailed that its fleet’s Carbon Intensity Indicator rating increased in 2023 as it operated fewer of its vessels as LNG carriers during the year, resulting in fewer nautical miles sailed. It reported an Annual Efficiency Ratio (AER) of 12.72 for its fleet, up from 11.06 in 2022.
The company logged a year-on-year 2% cut in Scope 2 emissions — which largely stem from its nine global offices — down at 69.25 tCO2e in 2023. But its Scope 3 emissions were up at 5,774 tCO2e primarily due to increased business activity, it said.
Storoy described the company’s dedication to emissions reduction as “steadfast”.
“In 2024, we will continue to develop our roadmap to decrease emissions from our existing assets, exploring numerous solutions, including access to shore-based power and hot water supply for cold-climate FSRU operations,” she said.
Hoegh LNG said one of its German-based FSRUs is now receiving hot water from nearby production plants cutting the need for onboard boilers and resulting in an average annual reduction of 28,000 tonnes of CO2 emissions.
Efficiency changes to another FSRU in the Americas resulted in a 20% CO2 reduction, the company said.
Sharpening the debate
Hoegh LNG said it is also keen to “sharpen the debate” on methane slip.
The company pointed out that this is currently calculated using estimations from the International Maritime Organization and engine manufacturers but said “these remain calculations”.
Hoegh LNG said it is installing systems to measure methane slip accurately to pinpoint what exactly constitutes optimal engine operation in different situations.
“This data could go a long way to reducing methane slip — not just at Hoegh LNG, but across the maritime industry. And it is just the tip of the iceberg,” the company said.
In its report, Hoegh LNG president and chief executive Erik Nyheim reiterated Hoegh LNG’s commitment to cut its carbon emissions by 50% and put its first net-zero carbon FSRU into operation by 2030.
He flagged that Hoegh LNG set up a Clean Energy Division in 2023 as the company looks at new low-carbon business such as floating ammonia terminals, hydrogen conversion and carbon capture and storage projects.
Female leaders
Nyheim said Hoegh LNG “exceeded industry norms for female leaders in 2023” and is committed to WISTA Norway’s pledge of aiming for a 40% female leadership by 2030.
Onshore, 41% of all Hoegh LNG’s employees are female and 23% of leadership positions are held by women.
The company is also aiming to put a strategy in place to boost its female seafarer numbers to 10% by 2030 after doubling numbers to 2.7% in 2023.
Hoegh LNG is also trying to get ahead on incoming regulations.
The company highlighted that in 2025 the European Union’s Corporate Sustainability Reporting Directive (CSRD) will come into force.
Hoegh LNG acknowledged that the transition to CSRD reporting represents “unchartered territory” for it and others.
But the company said it will comply with the new CSRD standards when presenting its next sustainability report for 2024.
