One of New York's iconic Staten Island ferries is to be converted to run on LNG in a $2.34m pilot program designed to cut fuel costs, reduce emissions and encourage the domestic use of LNG stocks.

Funding is to be provided under the US Department of Transportation’s Ferry Boat Discretionary Program which will cover the cost of converting one ferry from using ultra-low sulphur diesel to LNG.

The switch aims to cut fuel costs by nearly half.

Senator Charles Schumer described the conversion job as a “win-win-win”. "It will reduce our dependence on foreign oil, lower operating costs and help the environment," Schumer said. "This pilot program is a big boost for Staten Island commuters, who will ride a more efficient, cleaner ferry service."

The Staten Island Ferry carries more 20 million passengers per year and around 60,000 on each weekday between its island base at St George’s and Whitehall Street on the southerly tip of New York’s Manhattan Island.

The company commonly uses around five of its nine boats to make the five mile, 25 minute trip around 109 times during the working week. The journey provides a spectacular view of the New York skyline.