north and baltic sea seminar 2010 program “air emissions from shipping: regulations and...
TRANSCRIPT
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North and Baltic Sea Seminar 2010 Program
“Air Emissions from Shipping: Regulations and Challenges”
Peter M. SwiftMD INTERTANKO
26 November 2010
Paris
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INTERTANKO Today
250 + members operating ca. 3,100 ships > 75% of the independent oil tanker fleet and > 85% of the chemical carrier
fleet
300 + associate members: in oil and chemical tanker related businesses
[With strict membership criteria]
15 Committees – 5 Regional PanelsPrincipal Offices – London and Oslo
Representative Offices in US, Asia and BrusselsObserver Status at IMO, IOPC, UNFCCC, OECD and UNCTAD
International Association of Independent Tanker Owners
“The Voice of the Tanker Industry”
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INTERTANKO’s Strategic Objectives
To develop and promote best practices in all sectors of the tanker industry, with owners and operators setting the example.
To be a positive and proactive influence with key stakeholders, developing policies and positions, harmonising a united industry voice, and engaging with policy and decision makers.
To profile and promote the tanker industry, communicating its role, strategic importance and social value.
To provide key services to Members, with customised advice, assistance and access to information, and enabling contact and communication between Members and with other stakeholders.
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TANKERS
US“Я”
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Seafarer Concerns Today
• Criminalisation & Fair Treatment
• Piracy
• Bureaucracy, including:- excessive paperwork- too many inspections
More consideration should be given to the ramifications for the seafarer of new regulations
and legislation at IMO and elsewhere
– e.g. ballast water, multi-fuels, emission abatement technologies, etc.
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Air Emissions from Shipping
• Toxic emissions – SOx, NOx, PM – covered by IMO MARPOL Annex VI, EU and other regional regulations
• VOCs (Tankers) – covered by MARPOL • Ozone Depleting Substances – covered by MARPOL
• Greenhouse gases (principally CO2) – under debate at UNFCCC and IMO
SOx = Oxides of Sulphur, NOx = Oxides of Nitrogen, PM = Particulate Matter
VOCs = Volatile Organic Compounds,
UNFCCC= United Nations Framework Convention on Climate Change
IMO = International Maritime Organisation .
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“ Toxic Emissions from Shipping- SOx and NOx ”
The Challenges Today
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SOx and NOx Regulations
• SOx emissions regulated via Bunkers- with alternative methodologies accepted as Equivalent Measures
• NOx emissions regulated through engine design / limits
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Maximum Sulphur Limits- IMO MARPOL Annex VI
IMO Global S limit: Currently 4.5% 1 July 2012 3.5% 1 January 2020 / (2025) 0.5% / (if not available
in 2020) IMO ECA limit:
Initially 1.5%1 July 2010 1.0%1 July 2015 0.1%
ECA = Emission Control Area
• limits the sulphur content in marine fuels• different sulphur limits in open sea and in ECAs• requires quality criteria for the marine fuels
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IMO MARPOL Annex VI: Baltic and North Sea ECAs
MAY
2006NOV. 2007
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IMO MARPOL Annex VI: North American ECA
200 nm200 nm
200 nm200 nm
Will Mexico join ?
Challenges:Challenges:•ExtentExtent•Fuel availabilityFuel availability•Ship bunker capacityShip bunker capacity
Entry into force 1 August 2012
Caribs?Caribs?
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Regional Regulations on Bunkers
EU Sulphur Directive (presently being amended)– basically as per MARPOL Annex VI sulphur provisions – but with additional provision: use of 0.10% sulphur
content fuel when ships ”at berth” (since 1 Janaury 2010)– & MGO/MDO on the EU market should have < 0.1% S
content (since 1 January 2010)
California Air Resource Board (CARB)– use marine distillates within 24nm of the shore– sulphur content in marine distillates:
• before 1 January 2012 – MDO < 0.50% ; MGO <1.50%• after 1 January 2012 - MDO/MGO< 0.10%
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Sulphur in Bunkers: Application Dates and Limits
0
0.5
1
1.5
2
2.5
3
3.5
4
4.5
01 January 2010
01 January 2012
01 January 2014
01 January 2016
01 January 2018
01 January 2020
01 January 2022
01 January 2024
SU
LP
HU
R C
AP
(%
)
IMO/Global
IMO/ECA
EU
CARB
HFO
MDO/MGO
MGO
LSFO
MGOMDO
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NOx Emission Regulations - IMO MARPOL Annex VI
IMO MARPOL Annex VI sets limits in 3 Tiers
• Generally on ships built pre 2000 and engine not modified - No limits
• Engines on ships built post 2000 mostly comply with Tier I limits
• Engines on ships built after 1 January 2011 must comply with Tier II standards Emission reductions related to Tier I limits:
– 15.5% reduction (engines with n<130 rpm) (i.e. 14.36 g/kWh)– reductions between 15.5% and 21.8% depending on the
engine’s rpm (engines with 130 rpm < n < 2000 rpm)– 21.8% reduction (engines n > 2000 rpm) (i.e. 7.66 g/kWh)
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NOx Emissions-Tier III (new engines)
Tier III limits – 80% emission reductions from Tier I limits
Tier III limits apply to engines:– installed on ships constructed after 1 Jan 2016– power output of > 750 kW
(130 kW – 750 kW may be exempted by the Administration)
Tier III limits apply in ECAs only
Emission levels for Tier III are as follows:– 3.40 g/kWh (engines with n<130 rpm)– 9*n(-0.2) g/kWh (engines with 130 rpm < n < 2000 rpm)– 1.96 g/kWh (engines n > 2000 rpm
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Fuel Challenges for Ships
• Availability of Low S bunkers globally
• Quality issues (incl. measurement and verification)
• Requirements for multi-fuels
• Fuel switching – safety concerns (main engines and auxiliaries)
• Onboard storage & segregation capacity
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“ Volatile Organic Compounds Emissions ”
Challenges mostly met
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VOC Control Measures
Reductions during loading and on passage
e.g. using INTERTANKO VOCON procedure
plus Absorption, Condensation and other measures
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“ Greenhouse Gas Emissions ”
The Coming Challenges
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Climate Change Challenges
For shipping:
Protection of the Marine Environment includes Atmospheric Environment
GHG emissions – principally CO2 emissions
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Shipping is energy efficient
- environmentally responsible, reliable and cost efficient
235,9
217,1
91,2
72,6
53,8
40,5
29,8
9,0
1,9
0 50 100 150 200 250
VLCC tanker
Bulk carrier
Product tanker
General cargo ship
Container ship
Freight train
Ro-ro ship
Heavy truck
Air plane
km
Transport distance for 1 ton cargo per kg GHG emissions
Source: Danish Shipowners Association
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Shipping is energy efficient, BUT…
CO2 emissions by country (2007)
CO2 emissions from shipping 2.7% of global total (2007)
and predicted to grow as trade expands
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Reducing GHG Emissions from Shipping
Regulatory Processes & Timetables
• UNFCCC Programme
• IMO Programme
• Industry Initiatives
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The Regulatory Processes
• UNFCCC 1992
• IMO since 1997
• Kyoto Protocol, adopted 1997 entered into force 2005
• Copenhagen Accord 2009
UNFCCC = United Nations Framework Convention on Climate Change
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Kyoto Protocol
• Established under UN Framework Convention on Climate Change (UNFCCC) – adopted in 1997
• Ratified by 181 countries – not the USA• Categorises Annex 1 (Developed) Countries and Non-
Annex 1 (Developing) Countries • Annex 1 Countries are committed to make GHG reductions
with set targets, but also flexible mechanisms • Runs through to 2012, - Conference of Parties
endeavouring to develop a successor• Kyoto recognises “common but differentiated
responsibilities”, i.e. developed countries produce more GHGs and should be more “responsible” for reductions
• Kyoto looks to IMO to address Shipping and ICAO to address Aviation, and as such these emissions are currently excluded from Kyoto targets
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Recent and future timetableSelected Key Dates
12/2009 UNFCCC COP15 Meeting, Copenhagen
3/2010 IMO MEPC 60
2010 IMO MEPC MBM-Expert Group IMO MEPC Intersessional (EEDI)
2010 UNFCC Intersessional meetings
9/2010 IMO MEPC 61------------11/2010 UNFCCC COP16 Meeting, Cancun------------7/2011 IMO MEPC 62
11/2011 UNFCCC COP17 Meeting, South Africa
12/2011 EU Deadline for IMO/International Agreement
2012 Kyoto Protocol expires
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IMO – UNFCCC Conflicting principles - a major issue
IMO Principle:
“No More Favourable Treatment”
Versus
Kyoto Protocol principle:
“Common But Differentiated Responsibility”
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UNFCCC - COP15
The outcome:• NO targets• NO resolution of Kyoto/IMO Treaty conflict• NO direct reference to international shipping in the
non-binding Copenhagen Accord
BUT subsequently:
• International Aviation and Shipping should be regulated via UNFCCC and have targets as per other industries (EU Parliament)
• Shipping should make its “contribution” to Climate Change measures with $$$$ (UN Advisory Group)
• ICAO and IATA agree a package of reduction measures
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IMO Programme
IMO (MEPC) developing:
• Technical Measure (EEDI for new ships)
• Operational Measure (SEEMP & EEOI for new and existing ships)
• Market Based Measure (if needed)
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Technical Measures
societyforBenefit
costtalEnvironmenindexdesign efficiencyenergy Attained
Environmental cost = Emission of CO2
Benefit = Cargo capacity transported a certain distance
• measures energy efficiency of new ships• encourages design and technical developments
Energy Efficiency Design Index (EEDI)
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Technical Measures
Initially only the calculation of the Attained EEDI was planned to be mandatory, but the drive is to establish a mandated
requirement, such that the Attained EEDI < Required EEDI
Energy Efficiency Design Index (EEDI)
CO2 factor x SFC[FOC] (g/kW h) x Engine Power (kW)
EEDI = ----- ----------------------------------------------------------------
(g/tonne mile) Capacity (tonne) x Speed (mile/h)
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EEDI Required[ Tankers>20,000 DWT ]
10%10%
20%
30%
Phase 12015 - 2019
Phase 22020 - 2024
Phase 3Phase 3on and after 2025on and after 2025
Reference Line = Phase 0 = no reduction (2013 & 2014)
EEDI
DWT
Attained EEDI < Required EEDI
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Operational Measures
• Ship Energy Efficiency Managment Plan (SEEMP)– encourages improvement energy efficiency of ships in
operation– best measurable practices on operational procedures
setting goals– plan implementation strategy– monitoring – Energy Efficiency Operational Indicator (EEOI)– procedures for self-evaluation and improvement towards
set goals
• Energy Efficiency Operational Indicator (EEOI) = CO2 emitted per unit of transport work
CO2 emitted measured from fuel consumptionTransport work = cargo mass x distance (nm)EEOI is “voluntary” – a management tool
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Operational Measures
Energy Efficiency Operational Indicator (EEOI)
CO2 factor x [FOC] (g)
EEOI (g/tonne mile) = ----------------------------------------------------------------
Cargo Mass (tonne) x Sailed Distance (mile)
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Market Based Measures
MBMs under review at MEPC
• Emissions Trading Schemes• GHG Fund and Leveraged Incentive Schemes• Ship Efficiency & Credit Trading
and Vessel Efficiency System• Rebate Mechanism
Some would require all ships to pay a contributionSome provide rewards to more energy efficient ships
Most include a support mechanism to developing countries
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Why are MBMs Proposed ?
or ETSor other MBM
• Ships have a long life – EEDI takes time / operational measures not readily quantifiable; further “incentives” may be needed • International trade and shipping will continue to grow• A deemed “need” to fund offsetting in other sectors
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Future Means of Reducing GHGEmissions from Shipping
Industry activities and initiatives
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Means of Reducing GHGEmissions from Shipping
Industry initiatives:
• Work on EEDI – formula and reference line (workshops)
• Developing and assessing additional GHG reduction measures for new and existing ships (workshops)
• Developing Marginal Abatement Cost Curves- to determine what is achievable (study groups)
• Developing and implementing operational measures, such as “Optimal speed” (Liners) and “Virtual Arrival” (Tankers and Bulkers)
• Developing industry SEEMPs, such as INTERTANKO’s TEEMP – Tanker Energy Efficiency Management Plan
plus• Active participation in MBM Expert Group
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Technical and Operational Mitigation Measures
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Technical and Operational Mitigation Measures
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Marginal Abatement Cost Curves
PRELIMINARYPRELIMINARY
DRAFT,DRAFT,
Not for circulationNot for circulation
Developed in conjunction with DNV
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Virtual ArrivalOCIMF / INTERTANKO project
THE CONCEPT:
Virtual arrival is about identifying delays at discharging ports, then managing the vessel’s arrival time at that port/terminal through well managed passage speed, resulting in reduced emissions but not reducing capacity.
It is NOT not about blanket speed reduction to match current market conditions.
Virtual Arrival is all about managing time and managing speed.
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Virtual ArrivalOCIMF / INTERTANKO project
THE MECHANICS:
• Cooperation agreement between Charterer (Terminal Operator) and Owner
• Speed is “optimised” when ship’s estimated arrival is before the terminal is ready
• Owners and Charterers agree a speed adjustment
• May use an independent 3rd party to calculate / audit adjustment
• Owners retain demurrage, while fuel savings and any carbon credits are split between parties
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Virtual Arrival- additional benefits
In addition to directly reduced emissions, other benefits include:• Reduced congestion & toxic emissions in the port area • Improved reliability/safety• Potentially increased use of weather routing
Important pre-conditions:• The safety of the vessel remains paramount• The authority of the vessel’s Master remains unchanged• The basic terms of trade remain the same
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Is an MBM needed for Shipping ?
US
D/t
on
ne
*MGO since Dec 2008
Source: Bunkerworld
0
200
400
600
800
1000
1200
1400
Sep
-00
Jan-
01
May
-01
Sep
-01
Jan-
02
May
-02
Sep
-02
Jan-
03
May
-03
Sep
-03
Jan-
04
May
-04
Sep
-04
Jan-
05
May
-05
Sep
-05
Jan-
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May
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Sep
-06
Jan-
07
May
-07
Sep
-07
Jan-
08
May
-08
Sep
-08
Jan-
09
May
-09
Sep
-09
Jan-
10
May
-10
Sep
-10
MDO/MGO*
HFO
Bunker prices 2000 – 2010 [USD/tonne] HFO 380 cst / MDO / MGO*, Fujairah
With bunker costs frequently 60-80 % of total operating costs, does shipping need any further
market incentive to reduce GHG emissions ?
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THANK YOU
For more information, please visit:www.intertanko.com
www.shipping-facts.comwww.maritimeindustryfoundation.com
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57˚44.8’ N
62˚N4˚W
5˚W
48˚30’N
IMO MARPOL Annex VI: North Sea ECA
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Global Bunkering
Rest of the World 66%
North Sea 18%
Baltic Sea 3%
USA 12.70%
Canada & Mexico 0.30%
Source: Poten & Partners
Marine distillates on EU must have < 0.10% sulphur content
One - third of bunkers are supplied in ECA ports
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Challenges for ships
• Switching between at least 3 grades of fuel• Calling at EU ports, ships need to use:
– Deep sea fuel (HFO)– ECA fuel (LSFO)– EU - ”at berth”/”at anchor” fuel (MGO)
• Onboard storage & segregation capacity• Increase risk of fuel incompatibility• Increases the risks of boiler incidents• Safety requires upgrading/modifications• Viscosity, lubricity, flash point temp.
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Quality Problems with Marine Fuel Oils
• HIGH ABRASIVE FUELS• HIGH ASH• LOW FLASH POINT• HIGH SEDIMENTS• HIGH DENSITY• FUELS CONTAINING USED LUBE OILS• POLYETHYLENE CONTAMINATION• POLYSTYRENE CONTAMINATION• HIGH CALCIUM & HIGH SODIUM• HIGH WATER CONTENT• CONTAMINATED FUELS• INCOMPATIBILITY OF BLENDS• FATTY ACIDE METHYL ESTER (FAME)
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EEDI / EEOI
CO2 factor x SFC[FOC] (g/kW h) x Engine Power (kW)
EEDI (g/tonne mile) = ------------------------------------------------------------------------------
Capacity (tonne) x Speed (mile/h)
CO2 factor x [FOC] (g)
EEOI (g/tonne mile) = ----------------------------------------------------------------
Cargo Mass (tonne) x Sailed Distance (mile)