DKI Receives First LNG Bunkering

Matson achieved a major milestone in its journey to decarbonize vessel operations on September 4, when Daniel K. Inouye (DKI) received bunkers of 1,396.9 cubic meters of Liquified Natural Gas (LNG) at Long Beach before departing for Hawaii – marking our first ever operational LNG bunkering.

Retrofitting work on DKI to enable LNG operation – a project in dry dock – was completed and sea trials using a small amount of LNG taken at the dry dock were completed.

The use of LNG is expected to reduce DKI’s CO2 emissions by 24 percent – a significant first step toward meeting Matson’s long-term goals of achieving a 40% reduction in Scope 1 Fleet emissions by 2030, and a net zero Scope 1 Fleet emissions by 2050. Adopting the use of LNG across our fleet as a “bridge fuel” to future, lower carbon alternative fuels is a major part of Matson’s strategy to meet these goals.

In a fleet renewal program representing an investment of nearly $1 billion, Matson’s Aloha Class and Kanaloa Class vessels were built with dual-fuel engines, capable of running on traditional marine fuel or LNG with some modification. Before DKI was out of dry dock, work had begun on Manukai to replace its existing powerplant with a new dual-fuel, LNG-ready engine – a process that will have the vessel back in service and operating on LNG in August of next year.

Meanwhile, DKI’s sistership Kaimana Hila will go into dry dock in the second quarter of 2024 for the same LNG retrofitting DKI received and is scheduled to be back in service by year-end. The company is also considering LNG retrofitting projects for our Kanaloa Class vessels, Lurline and Matsonia.

In addition, last year, Matson committed another $1 billion to build three new Aloha Class vessels with Philly Shipyard that will all be delivered “LNGready” (requiring no retrofitting) in 2026 and 2027.