A multi-fuel future: the impact of the IMO sulphur cap · 2017-04-19 · • Blocked...

Please note that the information in this document is supplied for information and discussion purposes only. While ExxonMobil Marine has taken every care in the preparation of this document which has been developed using the best information currently available, it is intended purely as guidance. No responsibility is accepted by ExxonMobil Marine for the

accuracy of any information herein or for any omission herefrom. Neither ExxonMobil nor any of its affiliates, officers or employees shall be liable in any way (except in the case of fraud) for any direct, indirect or consequential loss of damage suffered by any recipient as a result of relying on any statement or information contained or omitted herein. Nothing in

this document is intended to override the corporate separateness of affiliated companies. References to “ExxonMobil”, “EM”, “ExxonMobil Marine” “we”, and “our” are used for

convenience and may refer to one or more of Exxon Mobil Corporation, ExxonMobil Marine Limited or its affiliates.

A multi-fuel future: the impact of the

IMO sulphur cap

6th Bunkernet Bunker Conference, 6 April 2017

David Squirrell B.Eng, C.Eng, MIMechE, MBA Chief Engineer UK, Cyprus, and Middle East

2

The International Maritime Organization (IMO) has set a 0.5%

sulphur cap on marine fuel sulphur content

New IMO emission limit

The new global sulphur limit will be adopted in 2020

3

Enforcement & implications

•  Upon implementation fuels with sulphur content >0.5% will no

longer be allowed without a scrubber

•  Enforcement will be handled by

IMO member states

•  The fuel supply chain, including

many refineries, will need to be

reconfigured

Refining converts oil into many products

Link between crude oil production and products demand

Crude Oil Input

Source: U.S. Department of Labor

Refinery

LPG/Propane

Gasoline

Chemicals feed

Wax/Asphalt

Lubes/Other

Fuel oil

Aviation fuels

Diesel

5

•  Low sulphur distillates i.e. marine gas oil (MGO)

•  New low sulphur fuels

•  Low sulphur fuel blends

•  Premium ECA category fuels

•  Liquefied natural gas (LNG)

•  High sulphur fuel (HFO) + a

scrubber

Compliance options

Sulphur distribution for residual fuel

6

0

5

10

15

20

25

30

0 - 0.5 0.5 - 1.0 1.0 - 1.5 1.5 - 2.0 2.0 - 2.5 2.5 - 3.0 3.0 - 3.5 3.5 - 4.0 4.0 - 4.5 4.5 - 5.0 5.0 - 6.0

Average sulphur content 2.45% m/m %

of

qu

an

titi

es

Sulphur content % m/m Source: International Marine Organization

1.95

4.07

6.12

8.42

26.18

28.05

24.68

0.54 0.00 0.00 0.00

7

ExxonMobil’s response

•  Multi-fuel future

•  Working with customers

•  Research and innovation

•  Technical leadership

•  Leveraging LNG expertise

•  Working with our refineries

Compliance challenges

Bunker quality

•  ISO 8217

•  Delivery

•  Fuels management

•  Engine maintenance

•  Technical support

10

Potential challenges:

•  Stability •  Compatibility

•  Flash point •  Cat fines

Owners should be aware of these problems and ensure they are prepared

ExxonMobil ECA Insight video series

Fuel quality concerns

11

Mixing fuel types can result in:

•  Sludge

•  Blocked filters/purifiers

•  Avoidable maintenance

Fuel compatibility issues

12

ExxonMobil always recommends testing a sample mix to check for

compatibility issues.

Fuel compatibility testing

This can be an on-board spot test [example below] or remotely via a

specialist lab.

13

Best practice guidelines

Avoid mixing

fuels

Store fuels

separately

Test fuels for

compatibility

Avoid mixing dissimilar

densities

14

Some compliant fuels will have high levels of cat fines. These can cause

significant engine damage

ExxonMobil recommends vessel operators use lab tests to identify

potential fuel issues

Catalytic fines

Compliance options

16

A multi fuel future

Blends

LNG Abatement

HFO

ECA Fuels

Distillates

0

10

20

30

2015 2025 2040

Marine demand

Fuel efficiency improvements vs 2010

Percent

Slow steaming

Operations

Vessel design

Engine

improvements

30

20

10

0

2015 2025

2040

Distillate

Fuel oil

Other 0

5

10

2015 2025 2040

MBDOE

LNG

Marine demand by fuel

10

5

0

2015 2025

2040

Source: Energy Outlook 2017

18

Scrubbers are offered by a number of

manufacturers and already installed on several hundred ships

Economic feasibility is dependent on

individual vessels

Outlook for scrubbers

19

High sulphur HFO is likely to be available up to and beyond 2020 but

limited to specific locations

Term contracts should be in place before late 2019

High sulphur HFO

availability

20

Vessel operators should use lubricants designed to work with

specific sulphur fuel levels:

•  Low sulphur fuels - low BN oil

•  High sulphur fuels with scrubbers -

high BN oil

Cylinder oil choices

•  Global sulphur cap of 0.5%

•  To be adopted in 2020

IMO decision: summary

•  No change to 0.1% ECA limit

•  Substantial fines for noncompliance

22

•  Not one fuel solution

•  Scrubbers will be part of the mix

IMO decision: implications

•  Fuel compatibility will be an issue

•  Presence of cat fines could increase

View our media resources to find out more about ExxonMobil Marine:

Resources

ExxonMobil Marine website > ExxonMobil Marine YouTube channel>

View the Voyager newsletter archive > Subscribe to Voyager >

Questions