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Looking to the Future:Operating in an Emissions

Control Area (ECA)

Houston, Texas10 - 11 March 2010

William J. LindMarine Director, Technology & Business Development

ABS

Bunkerworld Business Exchange

40 Years of Environmental Concern

Environmental ethics

International treaties

Laws and regulations

National policies and politics

The public

Environmentalists

Responsible engineers and citizens

Significant events

Environmental crime penalties

Desire to sustain our ecosystem

No tolerance for loss of life or pollution

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Orders to the Watch (prior 1970)

Wash down bilges with chemical cleaner and pump dry prior to entering port. In port pump all bilges on the midwatch.

Pump down waste oil tank prior to entering port

Dump all garbage; remember to hole containers so that they sink

Blow tubes on the midwatch; remember to notify the bridge and lookout

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Orders to the Watch (prior 1970)

Preheat diesels before getting underway to reduce annoyance of smoke and soot to topside personnel

Dump ballast water prior to fuel barge alongside; remember to minimize overboard discharge of oil from SW displacement tanks by continuous sounding of tanks

Chip and paint portside air castle; sweep down all debris; save empty paint cans for target practice

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On Going Legislation

December 2009 Conference of the Parties (COP15) in Copenhagen

IMO continues greenhouse gas (GHG) regulation

Hold annual increase in global temperature below 2 degrees C

$30 billion in climate funds for least developed countries

Unresolved: reduce GHG by 50% in 2050

Upcoming March 2010 IMO Marine Environment Protection Committee (MEPC) in London regarding: market based mechanisms

Cap and trade

Bunker levy

Energy efficiency design index

Need all parties involved (designers, builders, owners, operators, vendors, Administration) to make legislation effective

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The 6 Annexes of IMO MARPOL

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Annex I - Oil

2 Oct 83 6 Jul 93 1 Sep 025 Apr 05; 1 Jan 07

MARPOL 73/78 Revised 13F, 13G

Revised 13G Revised 13G, new 13H; Revised text

Annex II - Chemicals 6 Apr 87 1 Jan 07

Revised Annex II

Annex III - Packaged 1 Jul 92

Annex IV - Sewage 27 Sep 03

Annex V - Gabage 31 Dec 88

Annex VI - SOx NOx… 19 May 05 1 Jul 10Amdt

1980 1990 2000 2010

Exxon Valdez

Erika Prestige

Revised MARPOL Annex VI: ECA

Introduced by latest MARPOL Amendments: 1 July 2010

Sea area with special mandatory measures for emissions

For prevention and control NOx/SOx/PM

Original MARPOL VI: SECA (SOx only)

Current ECAs: the Baltic Sea and the North Sea

Any other sea area or port areas, designated by IMO: Annex VI criteria and procedures

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Proposed US Emission Control Area

US and Canada requested IMO to designate US and Canadian coast as ECA including Pacific, Atlantic, Gulf of Mexico and 8 main Hawaiian Islands

ECA would extend 200 NM from coastal baseline

After consideration, and if adopted entry into force (EIF) as early as August 2012

Impact after entry into force:

Fuel oil sulfur content ≤1.0% (12 months after EIF), down to ≤0.1%, after 2014

New engines to meet reduced NOx emission standards

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ABS Operational CO2 Index

Know where you are

Operational index – voyage specific:

Design index – design specific:

Various deduction allowed in numerator:

• Innovative technologies that reduces fuel consumption

• CO2 capture

Weather factor allowed in denominator: improving hull shape

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g of CO2 emitted (based on fuel burnt)

t of cargoes carried * N-M traveled

g of CO2 emitted (based on specific fuel consumption)

Design cargo capacity * Design speed

SOx Limits Worldwide

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Area Vessel Type % Sulphur Max &ISO 8217 DM Grade

Effective Regulation

Worldwide All 4.5% All Grades 19 May05 IMO

All EU Ports All 0.1% MGO (DMA;DMX)

1.5% MDO (DMB;DMC)

1 Jan 08 EU

Baltic Sea All 1.5% All Grades 19 May 06 IMO

EU

EU Waters Passenger Ships 1.5% 11 Aug 06 EU

N. Sea & English Channel

All 1.5% 22 Nov 07 IMO

All EU Ports All vessels at berth for > 2 hours 0.1% or use “Cold Ironing” 1 Jan 2010 EU

All EU Inland Waters/ Rivers

EU Inland Waterways and Vessels

0.1% 1 Jan 2010 EU

Greece Ports 16 Designated Greek Ferries 0.1% 1 Jan 2012 EU

From 24 Miles offshore California

All ME & Aux Boilers on ShipsAuxiliary Diesel Engines on Ships

1.5% MGO/ 0.5% DMA 1 Jan 2009 CARB

0.1% MGO/ MDO 1 Jan 2012 CARB

SOx Limits: EU

Requirement to use 0.1% sulfur level in fuel used when in EU ports effective 1 January 2010

Many ships unable to comply due to lack of availability of parts from suppliers

21 December 2009, the EU Commission recommended Member States take account of any detailed evidence of efforts to comply with the Directive by ships

EU Member States may consider the existence of an “approved retrofit plan” when assessing penalties

It is up to each EU/EEA Member State to how they choose to respond to the EU

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Complying with New Emissions Limits

Various options exist or are under development to reduce NOx or SOx emissions (some methods reduce both)

NOx emission reduction technologies:

Internal engine modifications (30-70% reduction)

Water injection (humid air engine) (65-85% reduction)

Exhaust gas recirculation (30-70% reduction)

Selective catalytic reduction (SCR) (90-95% reduction)

SOx emission reduction:

Exhaust gas cleaning (scrubbing)(90-99% reduction)

Switch from HFO to MDO (40% reduction with 1.5% MDO, 80% reduction with 0.5% MDO)

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SOx Emission Reduction: EGCS

Exhaust gas cleaning systems: approved to MEPC.170(57) “Guidelines for Exhaust Gas Cleaning Systems”

Guidelines specify requirements for the testing, survey, certification and verification of EGC systems

System approved subject to either:

Periodic parameter and emission checks

Continuous emission monitoring

When EGC system is operated in ports/harbors/estuaries, discharge water pH, turbidity, nitrates not to exceed limits

Washwater residue to be delivered shore reception facilities

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SOx Fuel Switching

News: 1 October 2009

Low sulfur fuel causing power loss (Motor Ship) The US Coast Guard and international shipping lines are becoming seriously alarmed at the number of ships suffering loss of power after switching to low sulfur fuel. This is particularly the case in California where the state ordered all ships (with a few special exceptions) from July to use a maximum of 1.5% marine gas oil (or 0.5% marine diesel oil) within 24 nautical miles off the coast. From January 2012 the limit for both types of fuel goes down to 0.1%. According to the Coast Guard, six ships suffered complete loss of power in July, out of 720 arrivals, compared with 11 out of 8,600 arrivals in the nine months before that. Even more worrying, San Francisco Bar Pilots say they have seen an incident every one to three days, some involving engine starts while at berth, due to insufficient air pressure or lack of fuel suction, leading to delays of a couple of hours.

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Can Technology Change the Game?

Single system for CO2, NOx and SOx

Test results show almost 100% removal of NOx and SOx

Test results indicate substantial reduction (35-50%) in CO2

First units now being fitted to newbuildings

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Emissions in Port

Emissions capture

Cold ironing

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Ship/Day Emission Reduction

Shipboard generators vs. cold ironing

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NOxSOxPMShip Power (tons/day)*1.070.590.044Shore Power (tons/day)*0.040.0040.001Emission Reduction (tons/day)*1.030.580.043*Note:

Future Air Pollution Reduction

Options

Hybrid systems combing diesel electric with high capacity storage batteries (eg: for harbor tugs as majority of time engines idling or at low power)

Fuel cell technology: marine applications of shore units

LNG: dual-fuel LNG and medium speed diesel electric (passenger vessels/coastal ro/ros)

• 30% lower CO2, 85% NOx, no SOx, low PM

Sail assist propulsion, Flettner rotors, solar, more efficient propellers/hulls

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Less Fuel Consumption, Fewer Emissions

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