Evaluating the implications of the ISO 8217:2010/ 2012 fuel

specifications

VISWA LAB

CONTENTS Assessing the availability of fuels that conform to these specifications

The future from a regulatory perspective

Is the EU likely to make these recommendations binding?

Beyond ISO 8217

Best Practices

ISO 8217 IS A COMMERICAL STANDARD FIRST VERSION OF 8217 STANDARD IN 1987 NOT A MANDATORY STANDARD IF BUYER AND SUPPLIER AGREE, FUEL CAN BE SUPPLIED TO ISO 8217:2005 OR EVEN ISO 8217:1996 LATEST VERSION OF STANDARD RELEASED ON JUNE 15, 2010 Voluntary Standard MOST MAJOR SUPPLIER IN MAJOR PORTS SUPPLY FUELS CONFORMING TO ISO 8217:2005 LESS THAN 5% OF SHIPPING COMPANIES TESTING AS PER ISO 8217: 2010 COST IS $1 TO $20 PER MT MORE

ISO 8217

4

5

FUEL OIL

• Sulfur limits removed (IMO governs)

• Acid Number (2.5mg KOH/g set as limit)

• CCAI (calculated specification)

• Total Sediment Potential or Total Sediment Accelerated

• Ash content lowered except RMK grades ( No change )

• Vanadium limits lowered except RMB30 Grade ( No change ) and RMG grades raised

• Aluminum and Silicon lowered

• Sodium added

• MCR for RMK lowered

• Calcium + Zinc OR Calcium + Phosphorus must exceed limits to be deemed as containing ULO

• Hydrogen Sulfide (Implementation Date of July 1, 2012)

ISO 8217:2010 – CHANGES FROM 8217:2005

7

8

DISTILLATES

• Acid Number (guiding limit of 0.5mg KOH/g)

• Stability

• Lubricity (applicable if sulfur content is below 500mg/kg or 0.05% mass)

• Appearance clause amended (TSE for DMB)

• Hydrogen Sulfide (Implementation Date of July 1, 2012)

ISO 8217:2010 – CHANGES FROM 8217:2005

FUEL OIL AND DISTILLATES – NEW ANNEXES ADDED

A) BIO‐DERIVED MATERIALS – ANNEX A B) CONTAMINANTS – ANNEX B C) HYDROGEN SULPHIDE – ANNEX C D) SULFUR – ANNEX D THERE HAVE BEEN AMENDMENTS AND ADDITIONS MADE TO THE OTHER ANNEXES AND THE ANNEX ON VISCOSITY CONVERSIONS HAVE BEEN REMOVED FROM THE STANDARD.

ISO 8217:2010 – CHANGES FROM 8217:2005

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IMO APPROVED MARPOL ANNEX VI GLOBAL SULFUR CAP January 2012 -max 3.50% Sulfur 2020 -max 0.50% Sulfur (2018 review, may be pushed back to 2025) SECA now ECA July, 2010 -max 1.00% Sulfur January, 2015 -max 0.1% Sulfur CALIFORNIA July 1, 2009 -MGO DMA max 1.5% Sulfur OR MDO DMB max 0.5% Sulfur January 1, 2014 -MGO DMA OR MDO DMB max 0.1% Sulfur REGULATORY PRESSURES

MARPOL SULFUR CHANGES

EXPERT OPINION ON FUTURE SCENARIO FOR BUNKER

FUEL • ACHIEVING 0.5% SULFUR CAP BY 2020 WILL BE VERY

DIFFICULT, EVEN BY 2025

• SWITCHING ALL SHIPS TO DISTILLATE FUEL WILL CALL

FOR $200 BILLION IN SECONDARY REFINING

• REFINERIES HAVE NOT PLANNED ANYTHING FOR THE

NEXT TEN YEARS

• BUNKER FUEL PRICES WILL RISE WITH INCREASED

DEMAND AND TIGHTENING OIL MARKETS

• ABATEMENT TECHNOLOGY OR SCRUBBERS - AN

INTERMEDIATE SOLUTION.

Why Scrubbers?

European Union

• Will EU make the recommendations binding

• What else may be expected from EU

• Unilateral Actions

• Undermining IMO Efforts

Beyond ISO 8217

• PROBLEMS

• PROBLEMS

• PROBLEMS

PURIFIER CHOKED-DCPD/STYRENE

17

FILTER CHOKING

WORDING OF ISO 8217:2010 PARA 5

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5 General requirements 5.1 The fuel shall conform to the characteristics and limits given in Table 1 or Table 2, as appropriate, when tested in accordance with the methods specified. 5.2 The fuel shall be a homogeneous blend of hydrocarbons derived from petroleum refining. This shall not preclude the incorporation of additives intended to improve some aspects of the fuel's characteristics and performance. The fuel shall be free from both inorganic acids and used lubricating oils. 5.3 Fuels shall be free from any material that renders the fuel unacceptable for use in marine applications.

WORDING OF ANNEX B OF ISO 8217:2010 – 1 DELETERIOUS MATERIALS

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This International Standard precludes the incorporation of deleterious materials as stipulated in Clause 5. Such materials should not be present, mixed or blended in marine fuels. Determining the harmful level of a material or substance is not straightforward given that a) each fuel is a unique, complex blend of hydrocarbon species; b) a wide range of materials from different sources can enter the marine supply chain from the production, handling and transport systems; c) varying levels of contamination can be present in the fuel due to the use of common equipment or pipelines in refineries, fuel terminals or other supply facilities;

WORDING OF ANNEX B OF ISO 8217:2010 - 2

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d) various analytical techniques are used to detect these contaminants and specific chemical species with no standardized approach; e) in most cases, sufficient data are not available with respect to the effects of any one specific contaminant, or combinations thereof, on the variety of marine machinery systems in service, personnel or upon the environment. It is, therefore, not practical to require detailed chemical analysis for each delivery of fuels beyond the requirements listed in this International Standard. Instead, it is required that a refinery, fuel terminal or any other supply facility, including supply barges and truck deliveries, have in place adequate quality assurance and management of change procedures to ensure that the resultant fuel is compliant with the requirements of Clause 5 of this International Standard with regard to the exclusion of deleterious materials.

BEST PRACTICES

• Choose correct specification

• Check the supplier’s paper work

• Density and water

• No mixing of Bunkers

• Correct sampling procedures

• Purifier gravity disc and flow rate

• Settling tank and drainage

• Filters - cleaning

PLATTS BARCELONA 2012

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