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Air Quality Regulation in California

Critical Issues in Greenhouse Gases, Stationary Sources & Mobil Source Emissions

January 12, 2007

Jim Flanagan

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Two views of marine transport

> Dirtiest mode of transport

> Uses high sulfur fuel

> Engines not designed to minimize emissions

> Cleanest mode of transport

> Efficient use of energy resources

> Lowest drag on movement

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How should we measure and track environmental performance?

> Reduction from baseline

> High baseline reductions appear less meaningful

> Per container (TEU) shipped per mile

> To track performance and for comparisons

> Consider entire environmental footprint

Good business planning reduces emissions

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Air Emissions in Marine Transportation

Consider the full transportation chain footprint

> Ocean going vessels

> Main engine emissions

> Dockside auxiliary engine emissions

> Harbor craft: tugs, pilot vessels, etc.

> Container loading and unloading

> Movement off-site

Energy Use Air Emissions

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Pollution Prevention: Increasing Efficiency Reduces Emissions and Costs

> Pollution prevention and waste minimization – Redesign of processes and practices to reduce or eliminate emissions or waste.

> Reuse of materials and converting wastes to new uses.

> Recycling.

> End-of-pipe treatment (such as catalytic reduction).

> Disposal (includes shifting emissions or impacts to other areas)

Best

Worst

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Energy efficiency for container vessels compared with other modes of transport

S-Type container vessel

Rail – Electric*

Rail –Diesel*

Heavy Truck*

Boeing 747-400*

Energy Use

kWh/tkm 0.018 0.043 0.067 0.18 2.00

Emissions (g/tkm)

CO2 8.36 44.096 17 50 552

PM 0.009 n/a 0.008 0.005 n/a

SOx 0.162 0.21768 0.00005 0.00006 0.17

NOx 0.21 0.13 0.35 0.31 5.69

*Source: Network for Transport and the Environment (NTM)

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0.0 10.0 20.0 30.0 40.0 50.0 60.0 70.0

km

Distance travelled with 1 ton cargo using 1 kWh energy for different transport modes

Boeing 747-400

Heavy Truck

Rail – Diesel

Rail – Electric

S-Type containervessel

PS-Type container(expected)

Shipping by water is most energy efficient

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Bigger ships are more efficient

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Large Container Vessels - > 5000 TEU- Average service speed 21 knots

76.3

2.03 1.250.0

20.0

40.0

60.0

80.0

100.0

CO2 NOx SOx

g CO2 / TEU.km

Medium-Large Container Vessels - 3500-5000 TEU - Average service speed 20 knots

85.8

2.57 1.410.0

20.0

40.0

60.0

80.0

100.0

CO2 NOx SOx

g CO2 / TEU.km

Medium Container Vessels 2000-3500 TEU - Average service speed 19 knots

121.6

3.17 1.990.0

20.0

40.0

60.0

80.0

100.0

120.0

140.0

CO2 NOx SOx

g CO2 / TEU.km

Small Container Vessels < 2000 TEU - Average service speed 16 knots

121.3

3.19 1.990.0

20.0

40.0

60.0

80.0

100.0

120.0

140.0

CO2 NOx SOx

g CO2 / TEU.km

g CO2/TEU.km = grams carbon dioxide emitted per twenty-foot container unit transported one kilometre.

Larger vessels are more efficient

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Shipping efficiencies through technologyMaersk Line energy optimization initiatives include:

> Waste heat recovery systems reduce fuel use 10%.

> Slide valves

> Computer systems improve cargo, route & speed efficiency

> Waste oil clarification decanters separate burnable liquids from waste oil, water, and sludge mixtures

> New cylinder lubrication systems use less oil

> Efficient hull and propeller maintenance

> Hull coatings

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Shipping Gets More Efficient

Average CO2 emissions from A.P. Moller - Maersk

owned container vessels 2002-2006*

89.1

85.684.6 84.8

84.1

81828384858687888990

2002 2003 2004 2005 2006*

g CO

2 / TEU.km

•*First half of 2006

ResultsOur efforts to reduce CO2 emissions have led to a significant 5.6 per cent decrease in fuel consumption and reduction in emissions per tonne of cargo. This corresponds to a total reduction in CO2 emissions of 1.81 million tonnes during the period 2002 to 2006*.

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Port area air quality options

> Is shore-side power a solution?

> Stresses shoreside electrical networks

> Significant capital costs and time required

> Compatibility issues from port to port

> Only reduces emissions while at dock

> Safety issues

> Other options include

> Cleaner fuels while near ports

> Cleaner engines

> On-board control technologies: SCR, PM filtration, etc.

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Reduces emissions: Total: over 400 tons/yrSOx: 92% PM: 73% NOx: at least 10%

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Vessel Loading and Unloading

> Minimize container movement

> Mathematical models used to minimize moves to load and unload vessels

> On-dock rail where feasible

> Inland mode choices

> Rail for minimum drag and resistance

> Trucks for greatest flexibility

> Pollution prevention

> Potential for electrification for new sites

> Minimize sulfur content of fuels

> Newest feasible engines

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Shipper Challenge #1Uncoordinated Regulation

> Different governments want different outcomes

> Europe is concerned about GHGs, SOx and fine particulate; whereas California is concerned about diesel particulate and ozone

> Different issues Different approaches to solutions

> Measurements and models vary

> Quality

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Shipper Challenge #2The Law of Unintended Consequences

> Improvements in one area can lead to problems in other areas

> Tests on SCR showed increasing particulates

> Restriction of at-sea dumping increases fuel use

> Newer vessels result in old-vessel recycling issues

> Scrubbing generates acid water

> Be careful what you measure

> Choice of metric

> Data quality

> Monitor vs. model

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The Maersk Challenge

> Being a good world-wide corporate citizen

> Reducing our GHG footprint reducing overall energy use

> Consider world-wide operational impacts

> Harmonizing world-wide concerns

> Getting cargo where it needs to be on time and at competitive cost

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Environmental Trends: Air Quality

> Increasing focus on health impacts of diesel emissions

> SOx, NOx and PM (particles)

> Ships, CHE, trucks, rail

> Air quality in many ports exceeds standards.

> Governments and customers are concerned about “Greenhouse Gases” (CO2)

> Regulatory actions will include

> Tighter fuel standards world-wide (cost factor)

> Need for new technologies: AMP, SCR, PM filters

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Maersk’s Air Quality Program

> Reduce sulfur in fuel where it impacts shoreside air quality

> Develop mobile solutions for mobile sources

> Replace not retrofit port cargo handling equipment

> Implement management systems to ensure consistent evaluation of issues

> Use good science and metrics

> Test thoroughly before committing

> Data-based decisions

> Work with shippers, other carriers and governments on metrics, reductions and technologies

> Clean Cargo Working Group

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Thank you