LNG Microgrid: Crowley Installing On-Site Power to Fuel Puerto Rico Port Terminal
Maritime transport firm Crowley is going to install a microgrid fueled by liquified natural gas (LNG) to provide energy resiliency for equipment and buildings at a key logistics terminal in Puerto Rico.
The LNG microgrid will power numerous parts of the company’s Isla Grande terminal in San Juan. These include LNG and solar microgrid power for terminal equipment, refrigerated containers, administrative and maintenance facilities.
Crowley, which has operated the Isla Grande terminal for about 50 years, already is delivering U.S.-produced LNG to the energy-challenged island territory through its American Energy LNG carrier.
“This LNG-fueled microgrid is a transformative investment that ensures our logistics terminal in San Juan can maintain seamless operations regardless of external conditions,” Matt Jackson, vice president of advanced energy at Crowley, said in a statement. “It exemplifies our focus on delivering innovative energy solutions that enhance reliability and operational resilience for our customers and the communities we serve.”
The U.S. is the world’s top exporter of LNG, which is natural gas liquified by chilling it to minus 261 degrees Fahrenheit and making it stable for shipping. Once reaching port it is regasified and utilized for commercial, petrochemical or power generation purposes.
Puerto Rico, due to its chronic outages and extreme weather, is considered an ideal location for on-site power and microgrids. The island’s utility-scale system has been disrupted constantly by hurricanes, but also suffered widespread outages earlier this year.
The LNG microgrid is part of more than $550 million targeted for capital investment in the Isla Grande terminal by Crowley. The microgrid should be completed early next year.
Crowley transports more than 94 million gallons of LNG annually through its truck loading facility in Peñuelas.
Natural gas, which emits about half the carbon dioxide of coal-fired power generation, is part of the movement to decarbonize Puerto Rico’s energy sector. The island consumes 70 times more energy than it produces, according to the U.S. Energy Information Administration.
Petroleum products, such as gasoline, diesel and fuel oil, fuel nearly two-thirds of Puerto Rico’s electricity mix, while natural gas accounts for about one-fifth, according to the EIA.
Renewable solar and storage residential microgrid development is growing on the island. Companies such as Eaton also have installed microgrids to power some of their industrial operations.
In 2017, the U.S. Department of Energy identified some 200 potential sites for microgrids in Puerto Rico. Since then, public and private partnerships have built microgrids in communities such as Castañer, Orocovis and Arecibo.