OFFSHORE EMISSIONS & TEC NOLOGY. Micki J. Jain Product Definition Manager Offshore Global Petroleum Houston, Texas

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1 OFFSHORE EMISSIONS & TEC NOLOGY Micki J. Jain Product Definition Manager Offshore Global Petroleum Houston, Texas

2 OFFSHORE EMISSIONS & OFFSHORE EMISSIONS & TECHNOLOGY TECHNOLOGY OFFSHORE EMISSIONS & TECHNOLOGY SCR GAS ENGINES

3 Page 3

4 Agenda Overview Emission Regulations for Offshore Applicability International Maritime Organization (IMO) US Emission Control Areas Technologies Selective Catalytic Reduction (SCR) Gas Engines Dual Fuel

5 Applicability of Regulations

6 IMO International NOx Regulation for Vessels, from NOx Technical Code MEPC58 IMO II Diesel engines over 130 kw installed on vessels engaged in international voyages with Keel laid on or after 1/1/2011. Applies to any diesel engine over 130 kw that undergoes a major conversion on or after 1 January, A major conversion is: The engine is replaced*. Any substantial modification exceeding emissions. Rating Increase 10%. The regulation does not apply to emergency engines. Also, all engines solely dedicated to the exploitation of sea bed minerals are exempt from IMO requirements (Regulation 3 of Annex 5, Formerly Regulation 19) *An exact replacement is allowed. Engines which are not exact, must be upgraded to IMO standard in effect at the time of replacement.

7 IMO I & II & III Emissions Limits NOx (g/kw-hr) IMO I IMO II IMO III 9.84 g/kw-hr 7.66 g/kw-hr 1.96 g/kw-hr RPM IMO II, NOx = 44 x N Where N is rated RPM Effective Jan 1, 2011 IMO III, NOx = 9 x N Where N is rated RPM ** Effective Jan 1, 2016 Effective date refers to date ship s keel laid **Note: Applies only within designated Emissions Control Areas (ECA) zones

8 North America IMO III NECA zone From EPA

9 USA NECA Zone is now in effect, August IMO Tier III NOx Emissions limits take effect for all vessels with keels laid 1/1/2016 when operating in the zone Fuel Sulfur limits are now in effect in the NECA zone.

10 Outer Continental Shelf (OCS) Regions

11 Additional EPA requirements for OCS regions Who? Drillships, jack up rigs, platforms that attach to the sea floor, regardless of flag What? Marine propulsion engines and auxiliaries must meet current stationary engine standards (NSPS & NESHAP) in certain geographic locations (See OCS regions below) (Reasonably Available Control Technology) EPA has Prevention of Significant Deterioration (PSD) for these regions Where? Adopted stationary regulations (1992) to keep attainment areas from deteriorating into non-attainment East of 87.5 degree longitude in US Gulf Offshore regions of Alaska When? This regulation has been in place since 1992 NESHAP 2013, Tier 4i is current RACT

12 Diesel NSPS Limits and NESHAP Diesel NSPS limits currently are at Nonroad Tier 4i for non emergency engines < 2237 bkw, Tier 2 for engines > 2237 bkw and < 15L/cyl Marine limits for engines >15L cyl < 30L cyl (C280) NESHAP has myriad of service interval and maintenance requirements, and latest addition of the rule 40CFR63 subpart ZZZZ would have required a DOC Due to comments from the EMA and Industry, EPA has re-opened the proposed rule to public comment prior to November 2, EPA s proposed rule would require only maintenance practice and no DOC.

13 Selective Catalytic Reduction SCR EMISSIONS TECHNOLOGY

14 Selective Catalytic Reduction How it works: Process by which oxides of nitrogen (NO x ) contained in diesel exhaust are reduced to nitrogen (N 2 ) and water (H 2 0) Requires diesel exhaust fluid (DEF) Airless or Air assisted DEF injection system Exhaust flows through a Clean Emissions Module to eliminate NO x Advantages: Highly efficient (removes up to 95% NO x ) Can be turned on and off for varying emissions standards Engine optimized fuel economy Proven emissions solution No new engine components to require maintenance No additional equipment required for tier 4 final emissions levels

15 SCR System Overview Clean Emissions Module Dosing Cabinet DEF Compressed Air Wire Harness Urea Transfer Pump Air Compressor* Urea Tank *In most applications *Images Shown Not to Scale

16 Offshore Drilling Installation with SCR SCR Top View

17 GAS ENGINES Gas Engines SCR EMISSIONS TECHNOLOGY

18 Main Drivers for Natural Gas Use in Power Generation Emissions, Noise, Water, Local Regulations Increasingly challenging emissions regulations Environmental concern and activism in existing and prospective oil and gas areas NAAQS limits are changing NO 2 and Ozone limits Flaring Legislation Increasing costs of Diesel fuel Utilizing natural gas offers quick payback by offsetting diesel cost with low cost gas

19 Comparison Diesel Gas 3 X 1,101 kw (1476 hp) Total NO x kg/hr (50.4 lb/hr ) Total PM.08 kg/hr (.18 lb/hr) 3 X 1356 kw (1818 hp) Total NO x 2.72 kg/hr (6lb/hr) Total PM 0 kg/hr Reduce NOx by 88.1%, PM by 100%

20 Dual Fuel Engines CATERPILLAR EMISSIONS TECHNOLOGY SCR

21 Dual Fuel: Technology

22 Dual Fuel: How it works

23 Dual Fuel: Emissions NOx limit values according to IMO II: g/kwh (n = 500 rpm) Main Engine: diesel electric drive: 10.0 g/kwh Auxiliary genset: 10.0 g/kwh NOx limit values according to IMO III: 2.59 g/kwh (n = 500 rpm) Gas mode 2.50 g/kwh

24 Key Take Away Need for awareness of different types of regulations depending on location and application Different technologies available to address these regulations

25 Thank You

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