LNG for small scale electricity generation

At DNV, we have recently finalized a study looking at various aspects of implementing LNG as the main fuel supply for distributed power generation and microgrid systems. The study covers key challenges, environmental and economical assessments, as well as a case study for Indonesia.

A new DNV study on LNG in small and micro size electricity generation

Over the past year or so we have gotten increasing amounts of questions related to using LNG for all sorts of small scale application. Just a few years ago, if you were building a small scale power plant either for an isolated island or for dedicated industry use, the default fuel supply would be heavy fuel oil or diesel products. If you have this need today, you are likely to search for other alternatives as oil based fuels are becoming very expensive. Very often, the most promising alternative is natural gas.

This study provides an  overview of all the components of the required supply chain and the key technical and logistical solutions. Technical challenges with implementing LNG fuelled power generation in microgrids are presented and assessed, and a framework for economical and environmental comparison of such power generation with conventional systems is provided.

A clear conclusion from the study is that by aggregating demand from small consumers that are off grid (industrial and communities on by micro grids), significant environmental benefits can be achieved in a way that in most scenarios also will save money.

The study was co-led by Dr. Sanjay Kuttan, Director at DNVs Clean Technology Center in Singapore. The full report can be downloaded here.


  1. hashim Ahmed

    I think the use NG for small units that could be utlized to produce electrical power become must in face of rising eregy prices. It is true we have faced the typical problems of isolated gas reserves that can not justify major investment on the other hand we can not just leave such reserves without use.

  2. Mr. Blikom

    Appreciate your study and insights on use of small scale LNG to electric.

    Check out item number 10.2.a on http://www.muskratinfo.ca website for an overview of our current problem here in Newfoundland and the possible use of LNG to solve our winter peak generation needs.

    Your comments would be appreciated,

    Cabot Martin
    St. John’s, Newfoundland

    • Thanks for this comment. I think the options for how to secure energy for the future that you discuss are representative for many places in the world. If there is anything we can do to help, let me know.


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