Finland-based Viking Line announced February 21 that it signed a deal with AGA Gas for the supply of liquefied natural gas (LNG) for a new ferry – the M/S Viking Grace – that will operate in the Baltic Sea.

The LNG-powered ship will operate in a route between Stockholm (Sweden), Aland Islands (Finland) and Turku (Finland) beginning January 2013, according to Viking.

The vessel, currently under construction at the STX Europe shipyard in Turku, will be Viking Line’s largest passenger ferry. LNG will be stored in specially built tanks at the rear of the vessel, holding the fuel at a temperature of about -150° Celsius (-239°F).

Viking said that the LNG fueling scheme would reduces ship carbon dioxide emissions by 20% to 30% compared to conventional heavy fuel oil, while also enabling compliance with the International Maritime Organization (IMO) Marpol Annex-6 directive for “emissions-control areas,” which limits bunker fuel sulfur content to a maximum 0.1% starting January 1, 2015.

“Viking Line’s environmentally conscious investment is an important flagship for the shipping industry and a cleaner Baltic Sea,” said Mikael Backman, CEO of Viking Line. “Proximity to the [AGA] LNG terminal, with flexible and reliable deliveries, as well as AGA’s knowledge of cryogenic, environmentally friendly fuel and bunkering technology makes AGA a natural partner in this pioneering project.”

AGA will deliver the liquefied natural gas to Viking from its LNG terminal in Nynashamn, Sweden, which was inaugurated in 2011. The planning, pre-construction engineering and permitting process for bunkering of the vessel at Stadsgarden in the port of Stockholm is underway, according to Viking.