scrubbers for sox and fuel cost february 5, 2016 spring ... · 14,000 teu container case study. 25...

Copyright © 2015. E. I. du Pont de Nemours and Company. All rights reserved. The DuPont Oval Logo, DuPont™, and all products denoted with a ® or ™ are trademarks or registered trademarks of E. I. du Pont de Nemours and Company or its affiliates.

Scrubbers for SOx and Fuel Cost Management

Spring, TX USA

NAMEPA:Pathways to Sustainability

February 5, 2016

Melanie DavidsonSales ManagerN. America & Europe

2Copyright ©2015 E. I. du Pont de Nemours and Company. All rights reserved. The DuPont Oval Logo, DuPont™, and all products denoted with a ® or ™ are registered trademarks or trademarks of DuPont or its affiliates.

DuPont™ MARINE SCRUBBER

SOx Management: Economic Compliance Options

SOx in Shipping

Economics of SOx Management

Aframax Case Study

Brief Scrubber Overview

Copyright © 2015 DuPont. All rights reserved. 3

SOx in Shipping

4Copyright ©2015 E. I. du Pont de Nemours and Company. All rights reserved. The DuPont Oval Logo, DuPont™, and all products denoted with a ® or ™ are registered trademarks or trademarks of DuPont or its affiliates.

DuPont™ MARINE SCRUBBER

6%94%

Shipping accounts for the 6% of global SOx emissions

shipping land based

Certain areas of the world are affected disproportionately by marine SOx pollution Global CO2 emissions from shipping

are 2% of total (from land based)

Shipping- 15% of Nox emissions

5Copyright ©2015 E. I. du Pont de Nemours and Company. All rights reserved. The DuPont Oval Logo, DuPont™, and all products denoted with a ® or ™ are registered trademarks or trademarks of DuPont or its affiliates.

DuPont™ MARINE SCRUBBER

EMISSION CONTROL AREAS Existing and Pending

DuPont™ MARINE SCRUBBER

In 2015, a 0.1% sulphur fuel cap came into effect in these areas in 2015.

6Copyright ©2015 E. I. du Pont de Nemours and Company. All rights reserved. The DuPont Oval Logo, DuPont™, and all products denoted with a ® or ™ are registered trademarks or trademarks of DuPont or its affiliates.

DuPont™ MARINE SCRUBBER

IMO Timeline

7Copyright ©2015 E. I. du Pont de Nemours and Company. All rights reserved. The DuPont Oval Logo, DuPont™, and all products denoted with a ® or ™ are registered trademarks or trademarks of DuPont or its affiliates.

DuPont™ MARINE SCRUBBER

Emission Control Area Updates… A Selection

CHINAMinistry of Transport goal: Cut SOx pollution in China’s major port regions by 65% by 2020.

Key ports including Pearl River Delta, the Yangtze River Delta and Bohai Bayare allowed to impose requirements for fuel burned at berth as early as January 1st 2016. Mandatory port requirements will go into force January 1st 2017 for all ports in designated areas (0.5%S).

HONG KONGJuly 1, 2015: Hong Kong establishes 0.5% S fuel ECA area while at berth in Hong Kong. Records of fuel switching must be kept for three years.

EUROPEAN UNIONFor 2020: EU established a 0.5% S ECA area for up to 200 nautical miles offshore (independent of IMO decision).

Italy is considering declaring a 0.1%S ECA in its waters for 2020

8Copyright ©2015 E. I. du Pont de Nemours and Company. All rights reserved. The DuPont Oval Logo, DuPont™, and all products denoted with a ® or ™ are registered trademarks or trademarks of DuPont or its affiliates.

DuPont™ MARINE SCRUBBER

Global Cap Implementation Update:2020 or 2025?

Outcome is uncertain with many operators planning for 2020

High political pressure for 2020“Availability, not affordability”

Scrubber & LNG Adoption can help balance fuel markets

IMO decision should come out no later than 2018 Delft Study on availability is due at MEPC 70

Non-availability waivers may be a way to get around LSFO shortages

?

Copyright © 2015 DuPont. All rights reserved. 9

Economics of SOx Management

BURDEN OR BOON?

10Copyright ©2015 E. I. du Pont de Nemours and Company. All rights reserved. The DuPont Oval Logo, DuPont™, and all products denoted with a ® or ™ are registered trademarks or trademarks of DuPont or its affiliates.

DuPont™ MARINE SCRUBBER

Economics of SOx Management

11Copyright ©2015 E. I. du Pont de Nemours and Company. All rights reserved. The DuPont Oval Logo, DuPont™, and all products denoted with a ® or ™ are registered trademarks or trademarks of DuPont or its affiliates.

DuPont™ MARINE SCRUBBER

Economics of SOx Management

12Copyright ©2015 E. I. du Pont de Nemours and Company. All rights reserved. The DuPont Oval Logo, DuPont™ are registered trademarks or trademarks of DuPont or its affiliates.

Switch to distillate fuels

(MGO) or hybrid fuels

- Low capital investment- No wash water discharge- No additional power required

- Most of the engines require add. equipment and specific lubricants- Very High OPEX compared to HFO

LNG

- Meets the regulations for both SOx and NOx (but the Nox applies for newbuilds only)

- Highest upfront investment- Space for LNG storage- Safety issues- Infrastructure delayed and uncertain

Install Scrubber

- Payback <2 years - Flexible solution for a challenging fuel market- Proven technology - Low OPEX

- Space requirements for towers and auxiliaries- Caustic management- Wash water and effluent management

PRO

SC

HAL

LEN

GES

DuPont™ Marine Scrubber

13Copyright ©2015 E. I. du Pont de Nemours and Company. All rights reserved. The DuPont Oval Logo, DuPont™, and all products denoted with a ® or ™ are registered trademarks or trademarks of DuPont or its affiliates.

DuPont™ MARINE SCRUBBER

Scrubbers are the only solution that allow shippers to continue to consume heavy fuel oil with sulphur content ≤ 3.5%S

Scrubbers as a fuel cost savings plan

Copyright © 2015 DuPont. All rights reserved. 14

Brief Scrubber Overview

15Copyright ©2015 E. I. du Pont de Nemours and Company. All rights reserved. The DuPont Oval Logo, DuPont™, and all products denoted with a ® or ™ are registered trademarks or trademarks of DuPont or its affiliates.

DuPont™ MARINE SCRUBBER

What IS a Marine Scrubber?

An effective and IMO-approved SOx abatment devicethat uses alkaline water (such as seawater) to convertharmful SO2 gas into harmless aqueous salts.

Added benefits..... Acid rains preventionParticulate Removal

16Copyright ©2015 E. I. du Pont de Nemours and Company. All rights reserved. The DuPont Oval Logo, DuPont™, and all products denoted with a ® or ™ are registered trademarks or trademarks of DuPont or its affiliates.

DuPont™ MARINE SCRUBBER

What comprises a scrubber ‘system’?

SCRUBBER TOWER

CENTRIFUGAL PUMP(S)

TREATMENT PLANT FOR WASH WATER (mostly mechanical)

MONITORING SYSTEM (AIR AND WATER PARAMETERS)

Utilities: Water, Power,Reagent

17Copyright ©2015 E. I. du Pont de Nemours and Company. All rights reserved. The DuPont Oval Logo, DuPont™, and all products denoted with a ® or ™ are registered trademarks or trademarks of DuPont or its affiliates.

DuPont™ MARINE SCRUBBER

Retrofit Scrubber Installation

Jan, 2015Bay Shipyard, Wisconsin

Copyright © 2015 DuPont. All rights reserved. 18

Aframax Case Study

19Copyright ©2015 E. I. du Pont de Nemours and Company. All rights reserved. The DuPont Oval Logo, DuPont™ are registered trademarks or trademarks of DuPont or its affiliates.

AFRAMAX TANKER CASE STUDY

20Copyright ©2015 E. I. du Pont de Nemours and Company. All rights reserved. The DuPont Oval Logo, DuPont™ are registered trademarks or trademarks of DuPont or its affiliates.

Aframax- Return of CAPEX chart, hybrid system

Propulsion : 1 x MAN 7S60MC, 14000 kW

Electricity Gen.: 3 x MAN6L21/31,1050 kW each

Operational profile : 80 % Sailing20 % Port

Annual HFO consum. ME : 8000 ton

Annual HFO consum. AE : 1500 ton

Annual MGO consum. AE : 1200 ton

Return of CAPEX: 2 years (assuming installation cost 50%)

Overall fuel cost saving, 10 year old ship : 1,600,000 x13years = 20,800,000 $

Total annual consumption : 9,500 ton of HFO

Assumed price differential Heavy/Light fuel : 225 US$ ton (Rotterdam Oct.2015)

Annual fuel cost savings running with HFO : 1,600,000 US $ (75 % ECA exposure)

21Copyright ©2015 E. I. du Pont de Nemours and Company. All rights reserved. The DuPont Oval Logo, DuPont™ are registered trademarks or trademarks of DuPont or its affiliates.

Technical configuration & utilities

Casing/funnel : Single box funnel, stern

Scubber system configuration : - Multi-stream single tower circular design for both MEs

and AEs

Tower dimensions : 3200 ∅ mm x 11500 mm

Max. Water flow rate : 1200 m3/h at full load, open loop

Electrical Consump. : 150 kWh at full load, open loop75 kWh at full load, water

treatment

NaOH consumption : 200 kg/h at full load, closed loop

22Copyright ©2015 E. I. du Pont de Nemours and Company. All rights reserved. The DuPont Oval Logo, DuPont™ are registered trademarks or trademarks of DuPont or its affiliates.

Sailing in ECA at 75% the pay-back is about two years (with historically low fuel price differential)

Significant annual fuel cost savings- millions of dollars depending on annual HFO consumption

50% of installation during sailing, 50% during scheduled drydrocks

100% compliance with the cheapest available fuelAnd OPERATIONS AS USUAL

Summary of benefits

Copyright ©2015 E. I. du Pont de Nemours and Company. All rights reserved. The DuPont Oval Logo, DuPont™, and all products denoted with a ® or ™ are registered trademarks or trademarks of DuPont or its affiliates.

24Copyright ©2015 E. I. du Pont de Nemours and Company. All rights reserved. The DuPont Oval Logo, DuPont™ are registered trademarks or trademarks of DuPont or its affiliates.

14,000 TEU CONTAINER CASE STUDY

25Copyright ©2015 E. I. du Pont de Nemours and Company. All rights reserved. The DuPont Oval Logo, DuPont™ are registered trademarks or trademarks of DuPont or its affiliates.

Return of CAPEX chart, hybrid system

Propulsion : 1 x MAN 11S90ME, 53,000 kW

Electricity Gen.: 3 x MAN L32/40, 3500 kW each

Operational profile : 70 % Sailing30 % Port

Annual HFO consum. ME : 25000 ton

Annual HFO consum. AE : 4000 ton

Annual MGO consum. AE : 2500 ton

Return of investment: 2 years (assuming installation cost 40%)

Overall fuel cost saving, 10 year old ship : 5,300,000 x 13 years =69,000,000 $

Total annual consumption : 31,500 ton of HFO/MGO

Assumed price differential Heavy/Light fuel : 225 US$ ton (Rotterdam Oct.2015)

Annual fuel cost savings running with HFO : 5,300,000 US $ (75 % ECA exposure)

26Copyright ©2015 E. I. du Pont de Nemours and Company. All rights reserved. The DuPont Oval Logo, DuPont™ are registered trademarks or trademarks of DuPont or its affiliates.

Casing/funnel : Single rectangular funnel, trasversal amid ship

System configuration : - Single-stream tower oblong or circular design for

the ME- Triple-stream single tower circular design to handle

3 AEs

Tower dimensions : 6500 ∅ mm x 15000 mm

Max. Water flow rate : 4500 m3/h at full load, open loop

Electrical Consump. : 600 kWh at full load, open loop450 kWh at full load, water

treatment

NaOH consumption : 950 kg/h at full load, closed loop

Technical configuration & utilities

Copyright © 2015 DuPont. All rights reserved. 27

DuPont Scrubber:Benefits, References and Experience

28Copyright ©2015 E. I. du Pont de Nemours and Company. All rights reserved. The DuPont Oval Logo, DuPont™, and all products denoted with a ® or ™ are registered trademarks or trademarks of DuPont or its affiliates.

DuPont™ MARINE SCRUBBER

DuPont Scrubber Design Features

Slim, customizable and designed on specific ship type

NO FANS: Low pressure drop, not exceeding 100 mm.w.c

Run dry mode, exhaust gases through the tower outside ECAs

NO BYPASS REQUIRED IN MOST CASES

Engineered in USA and fabricated at qualified workshops next to the shipyards

Flexible scope of supply, including turn key solutions

29Copyright ©2015 E. I. du Pont de Nemours and Company. All rights reserved. The DuPont Oval Logo, DuPont™, and all products denoted with a ® or ™ are registered trademarks or trademarks of DuPont or its affiliates.

DuPont™ MARINE SCRUBBER

SCRUBBER CONTRACTS AWARDED

DuPont™ MARINE SCRUBBER

TUKANG

A.P. Møller – Maersk GroupMaersk Tukang – 3.2 MW Aux Engine ---- Scrubber installed and piped onboard. Operational May 2014.

Rolls Royce/POLA/CMA CGM MV Norma – 2.2 MW Aux Engine ---Scrubber fabricated. Project on hold.

30Copyright ©2015 E. I. du Pont de Nemours and Company. All rights reserved. The DuPont Oval Logo, DuPont™, and all products denoted with a ® or ™ are registered trademarks or trademarks of DuPont or its affiliates.

DuPont™ MARINE SCRUBBER

MAERSKINSTALLEDSCRUBBER

31Copyright ©2015 E. I. du Pont de Nemours and Company. All rights reserved. The DuPont Oval Logo, DuPont™, and all products denoted with a ® or ™ are registered trademarks or trademarks of DuPont or its affiliates.

DuPont™ MARINE SCRUBBER

SCRUBBER CONTRACTS AWARDED

DuPont™ MARINE SCRUBBER

OBERSTAR

Interlake SteamshipSix (6) Closed Loop scrubbers on Three bulk carriers. First ship Scrubber unit operational April 2015.

32Copyright ©2015 E. I. du Pont de Nemours and Company. All rights reserved. The DuPont Oval Logo, DuPont™, and all products denoted with a ® or ™ are registered trademarks or trademarks of DuPont or its affiliates.

DuPont™ MARINE SCRUBBER

Interlake Scrubber at Fabrication Phase

33Copyright ©2015 E. I. du Pont de Nemours and Company. All rights reserved. The DuPont Oval Logo, DuPont™, and all products denoted with a ® or ™ are registered trademarks or trademarks of DuPont or its affiliates.

DuPont™ MARINE SCRUBBER

SCRUBBER CONTRACTS AWARDED

DuPont™ MARINE SCRUBBER

Condor Ferries Four (4) Open Loop scrubbers for 2 Ro-Ro Passenger Ferries. Delivery December 2015.

COMMODORE CLIPPER

Copyright © 2015 DuPont. All rights reserved. 34

DuPont in Marine Space

Copyright © 2014. E. I. du Pont de Nemours and Company. All rights reserved. DuPontTM and products denoted with a ® or TM are trademarks or registered trademarks of E. I. du Pont de Nemours and Company or its affiliates.

DuPont™ Marine Scrubber

MAERSK EGCS Tanker Study, July 14, 2015 CONFIDENTIAL INFORMATION

Science meets Demand.

35

36Copyright ©2015 E. I. du Pont de Nemours and Company. All rights reserved. The DuPont Oval Logo, DuPont™, and all products denoted with a ® or ™ are registered trademarks or trademarks of DuPont or its affiliates.

DuPont™ MARINE SCRUBBER

THE DUPONT GLOBAL ADVANTAGE

DuPont™ MARINE SCRUBBER

The DuPont™ Marine Scrubber is engineered by the clean air experts Belco Technologies Corporation (BELCO), and backed by the science and global support of DuPont.

10,000+ SCIENTISTS AND ENGINEERS

55,000 EMPLOYEES32 BILLION/YEAR IN REVENUE

$2.1 BILLION SPENT ON RESEARCH & DEVELOPMENT IN 2012

OVER 150 RESEARCH & DEVELOPMENT LOCATIONS WORLDWIDE IN OVER 90 COUNTRIES

37Copyright ©2015 E. I. du Pont de Nemours and Company. All rights reserved. The DuPont Oval Logo, DuPont™, and all products denoted with a ® or ™ are registered trademarks or trademarks of DuPont or its affiliates.

/ CLEAN TECHNOLOGIES

Industries Served

Phosphate Fertilizer

Marine

Metals & Mining

Oil & Gas

General Chemicals

GLOBAL LEADER IN SUSTAINABLE PROCESS TECHNOLOGIES

37

•DuPontTM Marine Scrubbers•Safety, Energy, Environmental Consulting•Protection devices TYVEK®, NOMEX®

38Copyright ©2015 E. I. du Pont de Nemours and Company. All rights reserved. The DuPont Oval Logo, DuPont™, and all products denoted with a ® or ™ are registered trademarks or trademarks of DuPont or its affiliates.

DuPont™ MARINE SCRUBBER

BELCO SERVICES:

DuPont™ MARINE SCRUBBER

BELCO is a DuPont company. BELCO’s only business is reducing pollutants from exhaust gas emissions. BELCO team includes marine engineers and naval architects, installation managers, and scrubber experts.

OperatorTraining

Material Supply

Process Engineering

Project Management

Detailed Design

Start Up & Field

Service

Laser Surveying & Modeling

Feasibility Studies

39Copyright ©2015 E. I. du Pont de Nemours and Company. All rights reserved. The DuPont Oval Logo, DuPont™, and all products denoted with a ® or ™ are registered trademarks or trademarks of DuPont or its affiliates.

DuPont™ MARINE SCRUBBER

CLICK TO EDIT MASTER TITLE STYLE

Partial ListingMany have multiple refineries using multiple BELCO® Scrubbers

BELCO OIL REFINING CUSTOMERSAmericas (43)• Valero/Premcor (12 scrubbers)• Marathon/Ashland (2 scrubbers)• Pennzoil (now Calumet)• Irving Oil• Motiva • Conoco Phillips (7 scrubbers)• Shell Oil• Lion Oil• Citgo (3 scrubbers)• Sunoco (3 scrubbers)• BP• Holly-Frontier Oil (4 scrubbers)• Placid Refining• Petrobank (Whitesands)• Western Refining• Tesoro• Petrobras Pasadena• Brazil – Petrobras

Europe (8 scrubbers)• Italy – ENI• Switzerland – Tamoil• Belgium –Total• Norway – ESSO• Romania – Petrotel-Lukoil (2 scrubbers)

India /Middle East (13)• IOCL (4 scrubbers)• ESSAR• HPCL (3 scrubbers)• NOCL • Qatar – QP ( 2 scrubbers)• Saudi Arabia – SAMREF• UAE – Takreer

Asia (72)• Taiwan - Formosa (7 scrubbers)• Taiwan - CPC• Korea – SK (2 scrubbers)• Korea - GS Caltex • Korea - Hyundai• Russia – GAZPROM, LUKOIL • China – Sinopec (23 scrubbers)• China – Petrochina (12 scrubbers)• China – Sinochem (4 scrubbers)• China – West Pacific Dalian• Philippines – Petron Bataan (2 scrubbers)• Thailand – SPRC.• Vietnam – PetroVietnam