IMO requirements to reduce emission to air from ships

byErik.Ranheim@INTERTANKO.com

Manager Research and ProjectsGdansk April 2008

‘

International Association of Independent Tanker Owners

A non-governmental organization established in Oslo in 1970 to speak authoritatively and proactively on behalf of tanker operators at international, regional, national and

local level

Membership260 Members

in 40 countries +2,900 tankers

236 million dwt 75% of independent tanker fleet

300 Associate Members

INTERTANKO

MISSION Provide leadership to the Tanker Industry in serving the world with safe, environmentally

sound and efficient seaborne transportation of oil, gas and chemical products.

VISION for the TANKER INDUSTRY

A responsible, sustainable and respected Tanker Industry, committed to continuous

improvement and constructively influencing its future.

INTERTANKO

Emission from shipping Shipping needs - INTERTANKO seeks

• Positive reduction of harmful emission

• A feasible, realistic and sustainable solution

• Long-term, predictable and solid IMO standards

• No unilateral nor regional regulations

1. Emission Annex VI, SOx, NOx, PM..

2. Green House Gas Emission

Reducing harmful emissions from ships

• Onboard abatement technology– Scrubbers, filters, separators, catalysts

• ECAs– Emission Control Areas

• Type and quality of fuel – Heavy fuel oil = a blending of refinery residues and

distillate (up to 30% dist.)– Distillates = gasoil and diesel

• Improved efficiency and lgistics

Energy use, population, CO2 emissionSeaborne trade

Source: Fearnleys/INTERTANKO

IndexIndex

90

100

110

120

130

140

150

160

170

180

1980 1982 1984 1986 1988 1990 1992 1994 1996 1998 2000 2002 2004

Population

Energy use

CO2 emission

Seaborne trade

World CO2 emission 2000

Shipping 2%

Other transportation

Eelectricity/heat

Industry +

Industrial processes

Land use change

Agriculture

Waste

Source; World Resource InstituteSource; World Resource Institute

Shipping and the environment

• ~60,000 ships (above 400 GT)

• 7,507,000,000 ts goods / year

• average distance 4,400 miles

• >90% of total world trade

• Consumes 9% of world oil

• CO2 emission share < 1/2 oil consumption share Simple infrastructure

• Economics of scale: One VLCC = 8,000 tank trucks

• 1 ltr of fuel on a modern Very Large Crude Carrier moves 1 tonne of cargo >

2,800 km

but

Shipping and the environment

• Shipping is fuelled by the dirties part of the barrel• Burning the heavy fuel oil used by shipping cause emission with:• SO2

• NOx• Heavy metals• Soot

The world is moving away from HFOOil consumption by product - % share

12%

17%

22%

27%

32%

37%1965

1967

1969

1971

1973

1975

1977

1979

1981

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

25

37

49

61

73

85

Middle distillates

Fuel oil

Total

Source: BP Review

% share m ts

Bunker price development 2000 - 2008USD/tonne, HFO 380 cst, Fujairah

Source: Bunkerworld

$ per tonne

90.0

140.0

190.0

240.0

290.0

340.0

390.0

440.0

490.0

540.0

590.0

Jun-

00

Dec

-00

Jun-

01

Dec

-01

Jun-

02

Dec

-02

Jun-

03

Dec

-03

Jun-

04

Dec

-04

Jun-

05

Dec

-05

Jun-

06

Dec

-06

Jun-

07

Dec

-07

Bunker price development 2000 - 2008

Source: Bunkerworld

$ per tonne

90

290

490

690

890

1090Ju

n-00

Dec

-00

Jun-

01

Dec

-01

Jun-

02

Dec

-02

Jun-

03

Dec

-03

Jun-

04

Dec

-04

Jun-

05

Dec

-05

Jun-

06

Dec

-06

Jun-

07

Dec

-07

MDO

HFO

The IMO emission package

• New regulation on SOx and PM• Compliance through fuel only• Equivalent measures accepted • Marine fuel oil quality to be improved • No measures on ships that do not receive

adequate bunker supply • Guidelines to asses compliance if BDN

data is challenged by PSC or lab test results

• NOx Tier I on large 1990s built engines• NOx Tier II and Tier III on new engines

Regulation 14 - Sulphur cap

GLOBAL ECA*

2010

(1 March)

4.5% 1.0%

2012

(1 January)

3.5%

2015

(1 January)

0.1%

2020/2025

(1 January) 0.5%

ECA*- Emission Control Area2018 IMO considering 0.5%SOx fuel availability

Regulation 4 – Equivalent measures

• An Administration may allow any fitting, material, appliance or apparatus to be fitted in a ship or other procedures, alternative fuel oils, or compliance methods used as an alternative to that required by this Annex if such methods are at least as effective in terms of emissions reductions as that required by this Annex

• This means the Administration (and not the ship) have to acknowledge that:– They have equivalent efficiency in terms of SOx, PM

and NOx.– That they do not harm the environment – As they operate within the requirements of the IMO

guidelines

Why not scrubbers?Why not scrubbers?

• Still under testing (2 ship limited scale)

• Large • Expensive• Difficult (impossible?) to install• CO2 emission (buffering effect)• leaves hazardous waste• waste disposal – no-one wants it• Tonnes of seawater need to be processed/added

We are involved in transportation – not waste treatment

Revised Regulation 18

• If a ship is not compliant it should present evidence/record it attempted to buy the compliant fuel in accordance with the voyage plan

• The ship not required to deviate from the voyage and should not be delayed

• If evidence is provided, there should be no measures against the ship

Fuel oil quality

• IMO Secretariat to request the ISO to consider a revision of a marine fuel oil specification (ISO 8217) addressing :

-air quality,

-ship safety,

-engine performance,

-crew health

with recommendations for future consideration by the IMO, and if feasible, report back to MEPS 58

NOx emissions – Pre-2000 enginesUpgrade Methodology

• Measures on engines:– installed onboard ships constructed

between 1 Jan 1990 and 31 Dec 1999– power output > 5,000 kW; and – per cylinder displacement at or > 90 litres

• The NOx emissions at Tier I level• If the engine already meets Tier I NOx

emission limits, simple certification is sufficient

NOx emissions – pre-2000 engines Part of the certification,

• Parties should check that the upgrading:– does not reduce the engine rating by more than 1% – does not increase the fuel consumption by more

than 2%, and – it has no other adverse effect on the durability or

reliability of the engine

• Upgrading to an acceptable cost/benefit level calculated according to a cost efficiency formula

Pre-2000 engines NOT-complying with

Tier I NOx emission limitations:• measures against ship ONLY if there is

a certified, efficient system commercially available

• upgrade at the ship’s first renewal survey after a upgrading system is available

• Documented that a system not available at the first renewal survey, flag gives an extension until the next Annual Survey

NOx emissions – Tier II (new engines)

• Tier II standards (emission reductions related to Tier I limits):– 15.5% reduction (slow engines)– 15.5% and 21.8% (medium speed) engines– 21.8% reduction (fast engines)

• Applies to engines installed on ships constructed on and after 1 January 2011

Engines manufacturers says it is possible

NOx emissions-Tier III (new engines)

• Tier III standards – 80% emission reductions from Tier I limits

• Tier III limits apply to engines:– installed on ships constructed on & after

1 Jan 2016– power output of > 750 kW

(130 kW – 750 kW may be exempted by the Administration)

• Tier III limits in ECAs only

• Outside ECAs - Tier II limits

Revised Annex VI

GLOBAL

S cap

ECA

S cap

Tier II Tier III

ECA only

2010 4.5% 1.0% - - - - - - - - - -

2011 yes - - - - -

2012 3.5% - - - - - -

2015 0.1% - - - - -

2016 yes

2020/2025 0.5%

INTERTANKO welcome IMO package

• Goals set by the INTERTANKO Council fully achieved:–  a solid platform of

requirements – realistic and feasible– contribute to achieve a

global, long-term and positive reduction of air emissions from ships; and

– contribute to a long-term and predictable global regulatory regime

Cleaner, Simpler and more Efficient

ships

GHG reduction

• Ship – striving for efficiency improvement– Engine– Hull,

• paint, • cleanliness • shape

– Kite/sails…..others

• Trades- charterers/traders optimising logistic

– Ballast part– Part loading– Sourcing

• Indexing of ships

Cleaner, Simpler and more Efficient ships

OUTCOME ON MARPOL ANNEX VI

THANK YOU VERY MUCH

Cleaner, Simpler and more Efficient ships