A multi-fuel future: the impact of the IMO sulphur cap

Transcription

1 6th Bunkernet Bunker Conference, 6 April 2017 A multi-fuel future: the impact of the IMO sulphur cap David Squirrell B.Eng, C.Eng, MIMechE, MBA Chief Engineer UK, Cyprus, and Middle East 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.

2 New IMO emission limit The International Maritime Organization (IMO) has set a 0.5% sulphur cap on marine fuel sulphur content The new global sulphur limit will be adopted in

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 3

4 Refining converts oil into many products LPG/Propane Chemicals feed Gasoline Refinery Aviation fuels Diesel Crude Oil Input Fuel oil Lubes/Other Wax/Asphalt Link between crude oil production and products demand Source: U.S. Department of Labor

5 Compliance options 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 5

6 Sulphur distribution for residual fuel Average sulphur content 2.45% m/m % of quantities Source: International Marine Organization Sulphur content % m/m 6

7 ExxonMobil s response Multi-fuel future Working with customers Research and innovation Technical leadership Leveraging LNG expertise Working with our refineries 7

8 Compliance challenges

9 Bunker quality ISO 8217 Delivery Fuels management Engine maintenance Technical support

10 Fuel quality concerns 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 10

11 Fuel compatibility issues Mixing fuel types can result in: Sludge Blocked filters/purifiers Avoidable maintenance 11

12 Fuel compatibility testing ExxonMobil always recommends testing a sample mix to check for compatibility issues. This can be an on-board spot test [example below] or remotely via a specialist lab. 12

13 Best practice guidelines Avoid mixing fuels Store fuels separately Test fuels for compatibility Avoid mixing dissimilar densities 13

14 Catalytic fines 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 14

15 Compliance options

16 A multi fuel future LNG Abatement ECA Fuels Blends HFO Distillates 16

17 Marine demand Fuel efficiency improvements vs 2010 Marine demand by fuel Percent MBDOE Engine improvements LNG Vessel design Distillate 5 Fuel oil Operations Source: Energy Outlook 2017 Slow steaming Other

18 Outlook for scrubbers Scrubbers are offered by a number of manufacturers and already installed on several hundred ships Economic feasibility is dependent on individual vessels 18

19 High sulphur HFO availability 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

20 Cylinder oil choices 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 20

21 IMO decision: summary Global sulphur cap of 0.5% To be adopted in 2020 No change to 0.1% ECA limit Substantial fines for noncompliance

22 IMO decision: implications Not one fuel solution Scrubbers will be part of the mix Fuel compatibility will be an issue Presence of cat fines could increase 22

23 Resources View our media resources to find out more about ExxonMobil Marine: ExxonMobil Marine website > ExxonMobil Marine YouTube channel> View the Voyager newsletter archive > Subscribe to Voyager >

24 Questions

25