Hawaii-focused shipping firm modernizing steamships to run on the cleaner-burning fuel
Pasha Group, the U.S.-flag shipping firm that specializes in Hawaii-to-U.S. trade routes, is committed to liquefied naturas gas (LNG) as a fuel source.
In addition to its two newly built vessels that have primarily run on LNG since they first entered service, the firm based in San Raphael, Calif., is also retrofitting ships in its existing fleet to run primarily on LNG fuel.
Pasha has been joined in moving toward LNG by Matson Navigation Co., which operates on similar routes. According to an industry expert, both are in step with the crest of the LNG adoption wave that has gained momentum in global shipping in recent years.
Edward Washburn, senior vice president for fleet operations at Pasha, explained how the company’s fleet has evolved in recent years through acquisitions and new construction. Back in 2005, Pasha built the roll-on/roll-off (ro-ro) vehicle carrier Jean Anne to run on marine gas oil (MGO). Later, Pasha acquired Horizon Line’s Hawaiian business, bringing four steam-powered ships into the fleet. Washburn, who had been with Horizon, came along with the transfer of ownership.
Everything was smooth sailing with that lineup until the implementation of the North American Emission Control Area. As of 2015, Pasha had its four ex-Horizon steamships burning heavy fuel oil and two motorships burning heavy fuel oil and some MGO — not a mix that would work well going forward under regulatory changes. In response, Pasha installed scrubbers on the two diesel ships. “The scrubbers we chose were 500 percent better than needed,” Washburn said in an interview. Those investments have kept the company ahead of the curve and will keep the vessels in the fleet for the foreseeable future.
The steamships were another matter, the last of the four went out of service in January. But Pasha’s strategy for moving forward was actually built upon those retired 1979-era steamships, one of which has been massively rebuilt into an LNG-fueled motor vessel.
“That was a first,” said Washburn. “There weren’t any U.S. yards that could handle that kind of conversion, which would require drydock availability for as long as eight months. So, the work was done in Asia. A further complication was that we had to limit the amount of steel to maintain eligibility under the Jones Act.”
“It was a very cool conversion,” he added.
But the conversions were just a start. Pasha also ordered two entirely new dual-fuel LNG-powered ships built in Brownsville, Texas. The two 774-foot containerships crafted at Keppel AmFELS became the Ohana-class ships MV George III, which entered service in August 2022, and MV Janet Marie, which joined the fleet in July 2023 (named the 2024 American Ship Review Ship of the Year). The two ships surpass the International Maritime Organization (IMO) 2030 emission standards for ocean vessels, according to Washburn. Efficiencies are also achieved with a state-of-the-art engine, the optimized hull form and high-efficiency rudder and propeller.
Regulatory challenges
Building new came with its share of challenges. With initially only “guidance” to go by, rather than actual regulations, there was room for interpretation by both the builders and the regulators. “Sometimes, regulators interpreted things differently,” Washburn said wistfully. A total of 17 issues required interpretation. Ultimately, Pasha was judged correct in all the choices they made “but the shipyard will tell you the process cost them,” Washburn said.
One of the biggest areas of disagreement was with regard to construction of fuel gas rooms. Washburn explained that in constructing a vessel you must identify and account for hazards. When liquid cryogenic fuel is involved, you must figure out the maximum probable leakage based on an event such as the failure of a flange or valve rather than the complete rupture of a pipe. Drip trays are then sized based on that “probable” level of risk. However, according to Washburn, the Coast Guard position has said that the risk setting should have been “maximum possible,” an interpretation that would require a fuel-gas room entirely constructed in stainless steel. “We continue to think that is an incorrect interpretation,” Washburn adds.
With three ships operating on LNG, Washburn said Pasha is now working on a second LNG conversion, to bring its LNG fleet to four. The environmental benefits from adopting LNG as a primary fuel source are significant. Nitrous oxides emissions drop by 90 percent and carbon dioxide emissions fall by 25 percent compared to traditional marine diesel fuels. Pasha’s crew expertise also helps get the best results. Normally, Washburn said, at less than 15 percent power, the engine automatically switches from LNG to conventional fuel because of its tricky operational characteristics. Pasha’s captains continue to use LNG even at slower engine speeds, he explained.
Meanwhile, Matson Navigation, which also operates in the West Coast market, has worked with Philly Shipyard to build its two LNG-powered Aloha-class ships that entered service in 2018 and 2019. The company also currently has three new Aloha-class containership slated for delivery in 2026 and 2027 and intended to operate in Matson’s China-Long Beach Express (CLX) service. Matson did not respond to inquiries for this article. But previous company postings indicate the new ships will have dual-fuel engines that can run on either conventional marine fuels or LNG. Like the Pasha vessels, they also claim a fuel-efficient hull design. The company said the 854-foot Aloha-class vessels have the distinction of being the largest containerships ever built in the U.S. According to published reports, Matson sees LNG as a step toward meeting the company’s emissions goals and a bridge to even cleaner fuels.
For Pasha, LNG is not just reducing emissions on the water, it is also an onshore business. Through a partnership, Pasha has been investing in LNG bunkering infrastructure.
“When we signed for the Ohana class, everyone wanted to sell us LNG because it was obvious we were starting an industry,” explained Washburn. “We said, ‘If you want to sell to us, we want to be part of the business.’”
The result was the creation of West Coast Clean Fuels (WCCF), a joint venture of Pasha Hawaii and World Fuel Services. At that point, there was no local LNG bunkering infrastructure. West Coast Clean Fuels got it permitted and provided Pasha with LNG bunkering infrastructure from day one of its ship operations. In August, the organization will mark its 100th LNG bunkering operation, according to Washburn. “It is very safe and efficient — we have even bunkered Matson vessels a few times.”
Peter Keller, the U.S. chair of Sea-LNG, an industry coalition established to demonstrate LNG’s benefits and viability as a marine fuel, put the investments by Pasha and Matson in context of a world looking to decarbonize. LNG is “the only fuel that is readily available, and safe at scale,” Keller said. “It provides up to a 28 percent reduction in carbon, and it looks like there will be about 1,000 LNG-fueled ships by 2026 or 2027, up from just one or two a few years ago.”
And, he added, bunkerage operations like the one Pasha is involved with are also rapidly multiplying, making LNG an increasingly practical option in nearly every port of any size for Jones Act vessels or global trade.
Looking further into the future, Washburn said Pasha is always looking to grow the business. So, through WCCF, it has become the first to be permitted to perform hydrogen bunkering, starting in San Francisco. The company worked closely with SWITCH Maritime to develop a hydrogen fueling solution for Sea Change, a 70-foot, 75-passenger ferry that recently began operations in San Francisco Bay for SF Bay Ferry. WCCF expects to deliver approximately 110,000 pounds of green hydrogen annually to operate Sea Change.
Pasha is optimistic that a growing market for clean maritime passenger transport will support the increasing adoption of zero-emission technologies. •