Scrubbers for SOx and Fuel Cost Management

Transcription

1 Scrubbers for SOx and Fuel Cost Management February 5, 2016 Spring, TX USA NAMEPA: Pathways to Sustainability Melanie Davidson Sales Manager N. America & Europe Copyright E. I. du Pont de Nemours and Company. All rights reserved. The DuPont Oval Logo, DuPont, and all products denoted with a or are trademarks or registered trademarks of E. I. du Pont de Nemours and Company or its affiliates.

2 SOx Management: Economic Compliance Options SOx in Shipping Economics of SOx Management Brief Scrubber Overview Aframax Case Study 2

3 SOx in Shipping Copyright 2015 DuPont. All rights reserved. 3

4 Shipping accounts for the 6% of global SOx emissions shipping land based 94% 6% Certain areas of the world are affected disproportionately by marine SOx pollution Global CO2 emissions from shipping are 2% of total (from land based) Shipping- 15% of Nox emissions 4

5 EMISSION CONTROL AREAS Existing and Pending In 2015, a 0.1% sulphur fuel cap came into effect in these areas in

6 IMO Timeline 6

7 Emission Control Area Updates A Selection CHINA Ministry of Transport goal: Cut SOx pollution in China s major port regions by 65% by Key ports including Pearl River Delta, the Yangtze River Delta and Bohai Bay are allowed to impose requirements for fuel burned at berth as early as January 1st Mandatory port requirements will go into force January 1st 2017 for all ports in designated areas (0.5%S). HONG KONG July 1, 2015: Hong Kong establishes 0.5% S fuel ECA area while at berth in Hong Kong. Records of fuel switching must be kept for three years. EUROPEAN UNION For 2020: EU established a 0.5% S ECA area for up to 200 nautical miles offshore (independent of IMO decision). Italy is considering declaring a 0.1%S ECA in its waters for

8 Global Cap Implementation Update: 2020 or 2025? Outcome is uncertain with many operators planning for 2020 High political pressure for 2020 Availability, not affordability? Scrubber & LNG Adoption can help balance fuel markets IMO decision should come out no later than 2018 Delft Study on availability is due at MEPC 70 Non-availability waivers may be a way to get around LSFO shortages 8

9 Economics of SOx Management BURDEN OR BOON? Copyright 2015 DuPont. All rights reserved. 9

10 Economics of SOx Management 10

11 Economics of SOx Management 11

12 DuPont Marine Scrubber PROS Switch to distillate fuels (MGO) or hybrid fuels - Low capital investment - No wash water discharge - No additional power required LNG - Meets the regulations for both SOx and NOx (but the Nox applies for newbuilds only) Install Scrubber - Payback <2 years - Flexible solution for a challenging fuel market - Proven technology - Low OPEX CHALLENGES - Most of the engines require add. equipment and specific lubricants - Very High OPEX compared to HFO - Highest upfront investment - Space for LNG storage - Safety issues - Infrastructure delayed and uncertain - Space requirements for towers and auxiliaries - Caustic management - Wash water and effluent management 12 Copyright 2015 E. I. du Pont de Nemours and Company. All rights reserved. The DuPont Oval Logo, DuPont are registered trademarks or trademarks of DuPont or its affiliates.

13 Scrubbers are the only solution that allow shippers to continue to consume heavy fuel oil with sulphur content 3.5%S Scrubbers as a fuel cost savings plan 13

14 Brief Scrubber Overview Copyright 2015 DuPont. All rights reserved. 14

15 What IS a Marine Scrubber? An effective and IMO-approved SOx abatment device that uses alkaline water (such as seawater) to convert harmful SO2 gas into harmless aqueous salts. Added benefits... Acid rains prevention Particulate Removal 15

16 What comprises a scrubber system? SCRUBBER TOWER CENTRIFUGAL PUMP(S) TREATMENT PLANT FOR WASH WATER (mostly mechanical) MONITORING SYSTEM (AIR AND WATER PARAMETERS) Utilities: Water, Power, Reagent 16

17 Retrofit Scrubber Installation Jan, 2015 Bay Shipyard, Wisconsin 17

18 Aframax Case Study Copyright 2015 DuPont. All rights reserved. 18

19 AFRAMAX TANKER CASE STUDY 19 Copyright 2015 E. I. du Pont de Nemours and Company. All rights reserved. The DuPont Oval Logo, DuPont are registered trademarks or trademarks of DuPont or its affiliates.

20 Aframax- Return of CAPEX chart, hybrid system Propulsion : 1 x MAN 7S60MC, kw Electricity Gen.: 3 x MAN6L21/31,1050 kw each Operational profile : 80 % Sailing 20 % Port Annual HFO consum. ME : 8000 ton Annual HFO consum. AE : 1500 ton Annual MGO consum. AE : 1200 ton Total annual consumption : 9,500 ton of HFO Assumed price differential Heavy/Light fuel : 225 US$ ton (Rotterdam Oct.2015) Annual fuel cost savings running with HFO : 1,600,000 US $ (75 % ECA exposure) Return of CAPEX: 2 years (assuming installation cost 50%) Overall fuel cost saving, 10 year old ship : 1,600,000 x13years = 20,800,000 $ 20 Copyright 2015 E. I. du Pont de Nemours and Company. All rights reserved. The DuPont Oval Logo, DuPont are registered trademarks or trademarks of DuPont or its affiliates.

21 Technical configuration & utilities Casing/funnel : Single box funnel, stern Scubber system configuration : - Multi-stream single tower circular design for both MEs and AEs Tower dimensions : 3200 mm x mm Max. Water flow rate : 1200 m3/h at full load, open loop Electrical Consump. : 150 kwh at full load, open loop 75 kwh at full load, water treatment NaOH consumption : 200 kg/h at full load, closed loop 21 Copyright 2015 E. I. du Pont de Nemours and Company. All rights reserved. The DuPont Oval Logo, DuPont are registered trademarks or trademarks of DuPont or its affiliates.

22 Summary of benefits Sailing in ECA at 75% the pay-back is about two years (with historically low fuel price differential) 100% compliance with the cheapest available fuel And OPERATIONS AS USUAL Significant annual fuel cost savings- millions of dollars depending on annual HFO consumption 50% of installation during sailing, 50% during scheduled drydrocks 22 Copyright 2015 E. I. du Pont de Nemours and Company. All rights reserved. The DuPont Oval Logo, DuPont are registered trademarks or trademarks of DuPont or its affiliates.

23 Copyright 2015 E. I. du Pont de Nemours and Company. All rights reserved. The DuPont Oval Logo, DuPont, and all products denoted with a or are registered trademarks or trademarks of DuPont or its affiliates.

24 14,000 TEU CONTAINER CASE STUDY 24 Copyright 2015 E. I. du Pont de Nemours and Company. All rights reserved. The DuPont Oval Logo, DuPont are registered trademarks or trademarks of DuPont or its affiliates.

25 Return of CAPEX chart, hybrid system Propulsion : 1 x MAN 11S90ME, 53,000 kw Electricity Gen.: 3 x MAN L32/40, 3500 kw each Operational profile : 70 % Sailing 30 % Port Annual HFO consum. ME : ton Annual HFO consum. AE : 4000 ton Annual MGO consum. AE : 2500 ton Total annual consumption : 31,500 ton of HFO/MGO Assumed price differential Heavy/Light fuel : 225 US$ ton (Rotterdam Oct.2015) Annual fuel cost savings running with HFO : 5,300,000 US $ (75 % ECA exposure) Return of investment: 2 years (assuming installation cost 40%) Overall fuel cost saving, 10 year old ship : 5,300,000 x 13 years =69,000,000 $ 25 Copyright 2015 E. I. du Pont de Nemours and Company. All rights reserved. The DuPont Oval Logo, DuPont are registered trademarks or trademarks of DuPont or its affiliates.

26 Technical configuration & utilities Casing/funnel : Single rectangular funnel, trasversal amid ship System configuration : - Single-stream tower oblong or circular design for the ME - Triple-stream single tower circular design to handle 3 AEs Tower dimensions : 6500 mm x mm Max. Water flow rate : 4500 m3/h at full load, open loop Electrical Consump. : 600 kwh at full load, open loop 450 kwh at full load, water treatment NaOH consumption : 950 kg/h at full load, closed loop 26 Copyright 2015 E. I. du Pont de Nemours and Company. All rights reserved. The DuPont Oval Logo, DuPont are registered trademarks or trademarks of DuPont or its affiliates.

27 DuPont Scrubber: Benefits, References and Experience Copyright 2015 DuPont. All rights reserved. 27

28 DuPont Scrubber Design Features Slim, customizable and designed on specific ship type NO FANS: Low pressure drop, not exceeding 100 mm.w.c Run dry mode, exhaust gases through the tower outside ECAs NO BYPASS REQUIRED IN MOST CASES Engineered in USA and fabricated at qualified workshops next to the shipyards Flexible scope of supply, including turn key solutions 28

29 SCRUBBER CONTRACTS AWARDED A.P. Møller Maersk Group Maersk Tukang 3.2 MW Aux Engine ---- Scrubber installed and piped onboard. Operational May TUKANG Rolls Royce/POLA/CMA CGM MV Norma 2.2 MW Aux Engine --- Scrubber fabricated. Project on hold. 29

30 MAERSK INSTALLED SCRUBBER 30

31 SCRUBBER CONTRACTS AWARDED Interlake Steamship Six (6) Closed Loop scrubbers on Three bulk carriers. First ship Scrubber unit operational April OBERSTAR 31

32 Interlake Scrubber at Fabrication Phase 32

33 SCRUBBER CONTRACTS AWARDED Condor Ferries Four (4) Open Loop scrubbers for 2 Ro-Ro Passenger Ferries. Delivery December COMMODORE CLIPPER 33

34 DuPont in Marine Space Copyright 2015 DuPont. All rights reserved. 34

35 DuPont Marine Scrubber Science meets Demand. MAERSK EGCS Tanker Study, July 14, 2015 CONFIDENTIAL INFORMATION 35 Copyright E. I. du Pont de Nemours and Company. All rights reserved. DuPont TM and products denoted with a or TM are trademarks or registered trademarks of E. I. du Pont de Nemours and Company or its affiliates.

36 THE DUPONT GLOBAL ADVANTAGE The DuPont Marine Scrubber is engineered by the clean air experts Belco Technologies Corporation (BELCO), and backed by the science and global support of DuPont. 10,000+ SCIENTISTS AND ENGINEERS 55,000 EMPLOYEES 32 BILLION/YEAR IN REVENUE $2.1 BILLION SPENT ON RESEARCH & DEVELOPMENT IN 2012 OVER 150 RESEARCH & DEVELOPMENT LOCATIONS WORLDWIDE IN OVER 90 COUNTRIES 36

37 / CLEAN TECHNOLOGIES GLOBAL LEADER IN SUSTAINABLE PROCESS TECHNOLOGIES Industries Served Phosphate Fertilizer Metals & Mining Oil & Gas Marine DuPont TM Marine Scrubbers Safety, Energy, Environmental Consulting Protection devices TYVEK, NOMEX General Chemicals 37

38 BELCO SERVICES: Material Supply Project Management Start Up & Field Service Process Engineering Laser Surveying & Modeling Feasibility Studies Operator Training Detailed Design BELCO is a DuPont company. BELCO s only business is reducing pollutants from exhaust gas emissions. BELCO team includes marine engineers and naval architects, installation managers, and scrubber experts. 38

39 BELCO OIL REFINING CUSTOMERS CLICK TO EDIT MASTER TITLE STYLE Americas (43) Valero/Premcor (12 scrubbers) Marathon/Ashland (2 scrubbers) Pennzoil (now Calumet) Irving Oil Motiva Conoco Phillips (7 scrubbers) Shell Oil Lion Oil Citgo (3 scrubbers) Sunoco (3 scrubbers) BP Holly-Frontier Oil (4 scrubbers) Placid Refining Petrobank (Whitesands) Western Refining Tesoro Petrobras Pasadena Brazil Petrobras Europe (8 scrubbers) Italy ENI Switzerland Tamoil Belgium Total Norway ESSO Romania Petrotel-Lukoil (2 scrubbers) India /Middle East (13) IOCL (4 scrubbers) ESSAR HPCL (3 scrubbers) NOCL Qatar QP ( 2 scrubbers) Saudi Arabia SAMREF UAE Takreer Asia (72) Taiwan - Formosa (7 scrubbers) Taiwan - CPC Korea SK (2 scrubbers) Korea - GS Caltex Korea - Hyundai Russia GAZPROM, LUKOIL China Sinopec (23 scrubbers) China Petrochina (12 scrubbers) China Sinochem (4 scrubbers) China West Pacific Dalian Philippines Petron Bataan (2 scrubbers) Thailand SPRC. Vietnam PetroVietnam Partial Listing Many have multiple refineries using multiple BELCO Scrubbers 39