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The INTERTANKO option to meet stricter Annex VI requirements to reduce emission to air from ships by [email protected] Manager Research and Projects for International Ship-Owners Alliance Of Canada Vancouver 27 September 2007

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Page 1: The INTERTANKO option to meet stricter Annex VI requirements to reduce emission to air from ships by Erik.Ranheim@INTERTANKO.com Manager Research and Projects

The INTERTANKO option to meet stricter Annex VI requirements

to reduce emission to air from shipsby

[email protected] Research and Projects

for International Ship-Owners Alliance Of Canada

Vancouver 27 September 2007

Page 2: The INTERTANKO option to meet stricter Annex VI requirements to reduce emission to air from ships by Erik.Ranheim@INTERTANKO.com Manager Research and Projects

Annex VI – Emission to air from ships

Annex VI on air emission from ships enforced as from mid 2005

but the world already demands stricter requirements

Page 3: The INTERTANKO option to meet stricter Annex VI requirements to reduce emission to air from ships by Erik.Ranheim@INTERTANKO.com Manager Research and Projects

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

Page 4: The INTERTANKO option to meet stricter Annex VI requirements to reduce emission to air from ships by Erik.Ranheim@INTERTANKO.com Manager Research and Projects

World society demand cleaner ships

The consequences of burning the bottom of the barrel:• SO2

• NOx• VOC• Heavy metals• Soot

Page 5: The INTERTANKO option to meet stricter Annex VI requirements to reduce emission to air from ships by Erik.Ranheim@INTERTANKO.com Manager Research and Projects

Effects of emission covered by Annex VI

• Sulphur - Acid rain – Affects ecosystems

• Nitrogen- Eutrophication:– Loss of biodiversity

• VOCs - Ozone– Damages plants and buildings/materials

• PM & Ozone, NOx and VOCs– Health problems; respiratory effects, cardiovascular effects premature death

Page 6: The INTERTANKO option to meet stricter Annex VI requirements to reduce emission to air from ships by Erik.Ranheim@INTERTANKO.com Manager Research and Projects

SOX - situationSOX - situationDATE SHIP TYPE WHERE max. % S REG.

19.05.2005 All Everywhere 4.5 IMO19.05.2006 All Baltic Sea 1.5 IMO &

EU11.08.2006 All All EU Ports EU

MGO (DMA + DMX) 0.2 MDO (DMB +DMC) 1.5

11.08.2006 Passenger EU 1.5 EU

1.01.2007 All * 24 miles off California shore CARB MGO (DMA grade) --

MDO (DMB grade) 0.5

11.08.2007 All N Sea and English Ch. 1.5 EU22.11.2007 All No Sea and English Ch. 1.5 IMO1.01.2010 All All EU ports 0.1 EU1.01.2010 Inland All EU inland waterways 0.1 EU

1.01.2010 All* 24 miles off California CARB MGO (DMA grade) 0.1

1.01.2012 16 Greek Greek ports 0.1 EU ferries

* All auxiliary & diesel-electric main engines on all ships

Page 7: The INTERTANKO option to meet stricter Annex VI requirements to reduce emission to air from ships by Erik.Ranheim@INTERTANKO.com Manager Research and Projects

Reducing harmful emissions from ships

• Onboard abatement technology– Still undergoing testing

• SECAs/NECAs– Air pollution recognises no borders

• Type and quality of fuel – The KEY to ultimate control of air emission

Page 8: The INTERTANKO option to meet stricter Annex VI requirements to reduce emission to air from ships by Erik.Ranheim@INTERTANKO.com Manager Research and Projects

INTERTANKO Study

• No ships =>400 GT:58,859• HFO consumption: 350 m ts• MDO consumption: 60 m ts

• CO2 emission w. HFO: 1,246 m ts

• CO2 emission w. HFO: 1,246 m ts

• SOx emission: 20.1 m ts

Page 9: The INTERTANKO option to meet stricter Annex VI requirements to reduce emission to air from ships by Erik.Ranheim@INTERTANKO.com Manager Research and Projects

The INTERTANKO solution

• All ships to burn only distillate fuels, with a global sulphur content cap:o Tier I - a maximum sulphur content of 1.0%, ando Tier II - for new engines - a maximum [0.5%]

sulphur content

• i.e. one Global Sulphur Emission Control Area• One Single Fuel specification included in

Annex VI• Simplified checking and monitoring provisions

Page 10: The INTERTANKO option to meet stricter Annex VI requirements to reduce emission to air from ships by Erik.Ranheim@INTERTANKO.com Manager Research and Projects

Switching to distillates for ALL ships

• Reduced emission:o SO2, - 60-80%,

o PM, - 80-90%, o NOx, - 15%o ………………

• Improved safetyo Fewer engine problemso No switching of fuel to meet SECA restrictions

• Distillate spills far, far, less serious than HFO spills• Higher bunker price - but also reduced costs:

o No need for extra tanks, piping, abatement equipment, etco Less maintenance, off-hire i.e. lower operation costso Reduced bunker consumptiono Less engine room waste and (no scrubber waste)

Page 11: The INTERTANKO option to meet stricter Annex VI requirements to reduce emission to air from ships by Erik.Ranheim@INTERTANKO.com Manager Research and Projects

The alternative to distillatesThe alternative to distillates

- For a main engine of 20 MW, seawater up to 22,000 t/day needs to be processed (45 t/hr/MW) (supplemented with some 6,500 t/day to lower pH)

- Up to 100 kg/day of hazardous sludge (5kg/day/MW)

* data supplied by Krystallon

Page 12: The INTERTANKO option to meet stricter Annex VI requirements to reduce emission to air from ships by Erik.Ranheim@INTERTANKO.com Manager Research and Projects

Investing in cleaner air

~$67 bn investments

at ~100 refineries to provide the ultimate solution?

or

~ $200 bn investments onboard some ~ 50,000 ships

to provide a piecemeal solution?

Page 13: The INTERTANKO option to meet stricter Annex VI requirements to reduce emission to air from ships by Erik.Ranheim@INTERTANKO.com Manager Research and Projects

World CO2 emission, energy use and population - indices

Source: CO2 emission: US Energy Information AdministrationEnergy use: BP ReviewPopulation: UN

CO2 emission increase stronger than energy and population increase due to relatively stronger increase in coal consumption

Index

90

100

110

120

130

140

150

160

170

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

Population

Energy use

CO2 emission

4.5 bn 6.6 mn18.3 bn

6.5 bn 10.6 mn27.3 bn

+42% +48%+40%

Page 14: The INTERTANKO option to meet stricter Annex VI requirements to reduce emission to air from ships by Erik.Ranheim@INTERTANKO.com Manager Research and Projects

World CO2 emission

Shipping 2%

Other transportation

Eelectricity/heat

Industry +

Industrial processes

Land use change

Agriculture

WasteSource; World Resource Institute

Page 15: The INTERTANKO option to meet stricter Annex VI requirements to reduce emission to air from ships by Erik.Ranheim@INTERTANKO.com Manager Research and Projects

CO2 effect of scrubbers

The major ion responsible for the alkalinity is the bicarbonate ion. The amount of bicarbonate and other weak bases in seawater buffers the system, thus keeping the pH within a narrow range. Standard seawater has a bicarbonate concentration of 140 mg L-1. Dissolved CO2 and

carbonates belong to the buffer system and are all related by the following four equations: Addition of sulphuric acid will shift the chemical equations 1-4 to the left and thereby increasing the partial pressure CO2 in the water.

The solubility of CO2 is limited and depends on salinity and

temperature. To keep the pH stable, CO2 will be released to the

atmosphere. Each molecule of sulphuric acid will be buffered by the release of two molecules of CO2.

Environmental Impact Of Seawater Scrubbing To Reduce Atmospheric Ship Emissions

Brigitte Behrends, School of Marine Science and Technology, University of Newcastle, Newcastle upon Tyne, NE1 7RU, UK

Marc Hufnagl, Forschungszentrum Terramare, Schleusenstr. 1, D-26382 Wilhelmshaven, Germany

Page 16: The INTERTANKO option to meet stricter Annex VI requirements to reduce emission to air from ships by Erik.Ranheim@INTERTANKO.com Manager Research and Projects

Switching to distillates CO2 balance

MDO replacing HFO MDO as fuel: 32 m tsAdd. emission from Scrubbers – buffering: 27 m tsrefineries: 47m ts

Plus unquantifiable amounts of CO2: - Running scrubbers

- Handling of waste from scrubbers - Handling sludge - Less engine maintenance

- Less engine spare part placement - Less heating

Debit Credit

Extra CO2 when switching: 47m ts Saving CO2 when switching: +60 m ts

Page 17: The INTERTANKO option to meet stricter Annex VI requirements to reduce emission to air from ships by Erik.Ranheim@INTERTANKO.com Manager Research and Projects

World CO2 emission, energy use and population

6

11

16

21

26

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

0

1

2

3

4

5

6

7

CO2 emission Energy use Population

m tonnes bn persons

Source: CO2 emission: US Energy Information AdministrationEnergy use: BP ReviewPopulation: UN

Page 18: The INTERTANKO option to meet stricter Annex VI requirements to reduce emission to air from ships by Erik.Ranheim@INTERTANKO.com Manager Research and Projects

Bunker price development 2000 - 2007Fujairah

050

100150

200250

300350

400450

500550

600650

700750

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

MDO

HFO

Page 19: The INTERTANKO option to meet stricter Annex VI requirements to reduce emission to air from ships by Erik.Ranheim@INTERTANKO.com Manager Research and Projects

Conclusion

The world demands clean shipping

Proactive and co-operative solutions are needed