13 annual marine money koreaship finance forum...more than ever interested in eco-friendly fuels to...

13th Annual Marine Money Korea Ship Finance Forum

Korea Ship Finance Forum

Fuel

The driving force that will bring about a tremendous change in the shipping industry

Improving energy efficiency, developing eco-friendly alternative energy, and carbon trading

Time to prepare for fuel conversion to green energy


At least 40% decrease until 2030, and 70% by 2050


The challenging goal to reduce GHG(Greenhouse Gas Emissions) by 2050

Mandatory requirement of new technologies and fuels

More than ever interested in eco-friendly fuels to replace Bunker C Oil

By 2050, transition to new low-carbon and carbon-neutral fuels


Important strategic choice directly related to the cost competitiveness

Distinct advantages and disadvantages of each countermeasure

Requirement of using marine oil with less than 0.5% sulfur emission starting in 2020


Huge capital investment

Lack of infrastructure for bunkering

Methane emissions

Large regional price differences

Significant loss of cargo space


HFO / MGO / MDO

LNG / LPG

Methanol

Biofuel

Ammonia

Battery

ESS (Electric Storage System)

Fuel Cell


NH

H

H

Only minor modifications to the existing equipment

Costs are lower than LNG refueling infrastructure

Safer than gasoline

Easy to liquefy, easy to store and transport

Considerable time to commercialize

Methanol


Biogas, Biodiesel, Bioethanol

Biofuel

Renewable

Plant photosynthesis level of small emissions of CO2

Replaceable or mixable with existing fossil fuels

No major technical changes to the existing engine


Core eco-friendly technology in the future

Expensive for liquefaction and storage

Early stage of technology that requires huge R&D investment

Ongoing project to mount sails on the vessel

Expected to reduce CO2 emissions by 90% compared to existing cargo ships


Electric power

The energy source for electricity will be an alternative energy such as gas, solar, wind, hydrogen, and nuclear power, etc.

Energy storage problem in moving facilities like ships should be solved.

Various fuel cells that use new alternative fuels, such as hydrogen, is being developed.


Fuel mix in the shipping industry will be even more diverse.

It is also important issues for the logistics and the financial industry that provides ship finance over 20 to 25 years.

We need continue to pursue a variety of strategies and pathways among various potential options.

It is critical to invest in the right choice at the right time within the service life of ships.


Scrubbers on container ships that will be introduced by 2021

LNG base for some fleet in the current technology stage

Around 2023, alternative fuels such as Methanol, Biofuel, and Ammonia

In 2030 or later, Hydrogen Fuel Cells or LNG Fuel Cells

We consider various fuel mix, not focusing on only one choice.


Carbon free shipping


Financial institutions will support the shipping industry’s eco-friendlinessand carbon reduction.

A Founding Signatories include Citi, Societe Generale, DNB, ABN Amro, Amsterdam Trade Bank, Credit Agricole CIB, Danish Ship Finance, Danske Bank, DVB, ING and Nordea, and represent around 20% of the global ship finance portfolio.


The joint efforts of the shipping industry-related industries, the government, related institutions, and the financial sector will help to resolve the uncertainty of the shipping industry.

This will support the initiatives to protect environment and create virtuous circle of cooperation leading to the common development.

13 annual marine money koreaship finance forum...more than ever interested in eco-friendly fuels to...

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