Ship Air Emissions Main Challenges, Policies and Industry Developments
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1 IMarEST U.A.E. branch technical meeting Dubai 10 May 2018 Ship Air Emissions Main Challenges, Policies and Industry Developments Stefanos CHATZINIKOLAOU Senior Manager, Marine Research & Innovation RINA Hellas Ltd
2 Ship Air Emissions Main Challenges, Policies and Industry Developments Intro Facts for shipping, main challenges Subtopic 1 (CO2 emissions) Data Collection System (DCS) for fuel consumption monitoring IMO Strategy for GHG Subtopic 2 (SOx emissions) Market response to the 2020 Global Sulphur Cap Exhaust gas cleaning LNG Alternative fuels
3 Ship Air Emissions Main Challenges, Policies and Industry Developments Intro Facts for shipping, main challenges
4 Ship air emissions Main Greenhouse Gases (GHG) CO2: Carbon Dioxide CH4: Methane Climate change N 2 O: Nitrous Oxide Halons Main Air pollutants NOx: Nitrogen Oxides SOx: Sulfur Oxides PM: Particulate Matter Human Health Ecosystems VOC: Volatile Organic Compounds CO: Carbon Monoxide
5 CO 2 facts of shipping International Shipping 50,000 ships 90% Global transport work
6 CO 2 Comparisons
7 Challenges (1) Expected growth of international shipping Source: International Council on Clean Transportation
8 Challenges (2) Quality of Marine fuels
9 Challenges (3) Green house gas reduction potential DESIGN (New ships) Saving of CO 2 /tonne-mile Concept, speed & capability 2% to 50% Hull and superstructure 2% to 20% Power and propulsion systems 5% to 15% Low-carbon fuels 5% to 15% Renewable energy 1% to 10% Exhaust gas CO 2 reduction 0% OPERATION (All ships) Fleet management, logistics & incentives 5% to 50% Voyage optimization 1% to 10% Energy management 1% to 10% Combined 10% to 50% 10% to 50% Combined 25% to 75%
10 Challenges (4): Energy efficiency Reduce fuel consumption Reduce Emissions Reduce health impacts Less Fuel Cost Reduce environmental impact Improve company s image Economic Sustainability Environmental Sustainability Social Sustainability Energy efficiency is cost effective and is becoming a necessity from: society, industry and regulations
11 Challenges (4): Is energy efficiency effective? Although ships became more efficient from 2013 to 2015, total CO2 emissions from ships increased. Overall CO2 intensity of cargo carrying ships decreased (improved) by 3.5% from 2013 to 2015, compared a 7% increase in transport supply (dwt-nm). Change in CO2 emissions and CO2 intensity for key ship types (International Council on Clean Transportation, 2017)
12 Environmental Challenges Shipping GHG emissions represent less than 3% of the global anthropogenic GHG emissions International shipping is expected to grow its volume in the future (its emissions in a BAU scenario to double or triple until 2050) Shipping s non GHG emissions are important contributors to air pollution effects (NOx, SOx, PM 2.5 VOC) Shipping uses lower quality fuels compared to other modes of transport Shipping has great emissions reduction potential (from design, operation, market mechanisms, solutions) Current energy efficiency measures are simply not enough!
13 Ship Air Emissions Main Challenges, Policies and Industry Developments Subtopic 1 (CO2 emissions) Data Collection System (DCS) for fuel consumption monitoring IMO Strategy for GHG
14 IMO Data Collection System (DCS) IMO has developed a Data Collection System for fuel oil consumption of ships, to address CO2 emissions In MARPOL Annex VI (Reg. 22A)
15 IMO Data Collection System (DCS) Timeline Activities The ship Data collection method: SEEMP part II 1 st reporting period Submit data collected The Flag/RO Verify that SEEMP part II is in compliance with the Regulation Verify the reported data of fuel consumption Shall issue a statement of compliance Transfer the data to IMOs ships fuel oil consumption database
16 IMO Data Collection System (DCS) Sources of CO2 emissions Main Engines Auxiliary Engines Boilers Gas Turbines Inert Gas Generators Incinerators are not subject to DCS
17 IMO Data Collection System (DCS) Methods of monitoring fuel consumption Method A Bunker Fuel Delivery Note (BDN) and periodic stocktakes of fuel tanks Method B Bunker fuel tank monitoring on board Method C Flow meters for applicable combustion processes
18 IMO Data Collection System (DCS) Process Ship Submits data to flag State or RO in accordance with regulation 22A. Data collection methodology to be included in the ship s SEEMP Flag State Administration Aggregates data and submits to IMO Secretariat. Verifies the ship s SEEMP and the data reported complies with regulation 22A. Issues Statement of Compliance to the ship IMO Secretariat Aggregates all data submitted by flag States, ROs, and nonparty ships. Provides Flag States with anonymized data from the IMO Ship Fuel Consumption Database IMO Ship Fuel Consumption Database Data will be anonymized to the extent that individual ships cannot be identified. Access to anonymized data will be restricted to IMO Member States only
19 Be conscious! Many ships may have to monitor and report two times following the requirements of: 1. The Monitoring Reporting and Verification (MRV Reg.) of EU 2. The Data Collection System (DCS) of IMO
20 IMO DCS vs. EU MRV Timeline EU Adoption April Entry into force July Delegated / Implementing Reg. Publication Submission of MP By August Start monitoring IMO Draft amendments (MARPOL Annex VI) Approval Amendments to MARPOL Annex VI Adoption Entry into force 1 March Start data collection MEPC68 May MEPC69 April MEPC70 October MEPC71 June MEPC72 Feb. MEPC73 October MEPC74 June
21 IMO DCS vs. EU MRV EU MRV IMO DCS Monitoring Ships 5000GT and above Ships 5000GT and above EU port of call Voyages All Intl. Voyages Start on 1 Jan Start on 1 Jan First Mon. Period Parameters Fuel Cons. (Port/sea) Fuel Cons. Transport work - Distance Distance Time Time Verification Independent accredited verifier Flags/RO Reports to European Commission Flag State Certification Document of Compliance Statement of Compliance Pubblication Public database Anonymus public data
22 IMO DCS vs. EU MRV EU MRV alignment to the IMO DCS A. No alignment: Two sets of data, two different verification approaches, and EU data to be published. B. Full alignment: The EU-MRV is fully aligned to the IMO data collection system but ships using EEA ports have to submit reports in both systems with the reports for the EU system only covering voyages from and to EEA ports. C. Partial alignment: EU MRV is maintained, including all elements (monitoring, reporting, verification and publication). Similar elements are harmonised in order to minimize administrative burden. Publication of EC final proposal is being expected the 2nd quarter of 2018
23 IMO roadmap
24 MEPC 72 Outcome Targets set for shipping s GHG Level1 Carbon Intensity of the ship Carbon intensity at the ship level to decline implementation of further phases of the EEDI for new ships to review and strengthen the EEDI limits for ships (improvement for each phase to be determined for each ship type, as appropriate0 Level 2 Carbon Intensity of international shipping Carbon intensity of international shipping to decline CO2 emissions per transport work, as an average across international shipping, by at least 40% by 2030, pursuing efforts towards 70% by 2050, compared to 2008 Level 3 GHG from international shipping to peak GHG emissions from international shipping as soon as possible to reduce the total annual GHG emissions by at least 50% by 2050 compared to 2008 whilst pursuing efforts towards phasing them out consistent with the Paris Agreement temperature goals
25 What is next? IMO GHG Strategy, Short term measures ( ) 1. Energy efficiency with focus on EEDI and SEEMP EEDI = Power SFC Cf Cargo Capacity speed [ g CO2 ] Tons Miles 2. Consider and analyse speed optimization and speed reduction as a measure Cut fuel Cut CO 2 Slow steami ng
26 What is next? IMO GHG Strategy, Short term measures ( ) 3 Initiate R&D. Establish an International Maritime Research Board to coordinate research 4 Consideration of other indicators that can be utilized to indicate and enhance the energy efficiency Annual Efficiency Ratio (AER), Energy Efficiency per Service Hour (EESH), Individual Ship Performance Indicator (ISPI) Fuel Oil Reduction Strategy (FORS);
27 What is next? IMO GHG Strategy, Short term measures ( ) 5 Address emissions of methane and Volatile Organic Compounds 6 Incentives for first movers to develop and take up new technologies
28 What is next? IMO GHG Strategy, Mid- term measures ( ) 7 Market based measurers, (e.g. emissions trading) 8 Implementation programme for the effective uptake of alternative low-carbon and zero-carbon fuels,
29 What is next? IMO GHG Strategy, Long- term measures ( ) 9 De carbonization (fossil free, or zero carbon fuels)
30 End of Subtopic 1
31 Ship Air Emissions Main Challenges, Policies and Industry Developments Subtopic 2 (SOx emissions) Market response to the 2020 Global Sulphur Cap Exhaust gas cleaning LNG Alternative fuels
32 Global Sulphur Limit Facts Air Pollution Contribution of the transport sector to total emissions of the main air pollutants (%) international shipping in EU 16 % of NOx, 4 % of PM10, 7 % of PM % of SOx (European Environmental Agency, 2017).
33 Global Sulphur Limit AREA Sulphur Limit Scrubbers Global 0.5 % Accepted ECA 0.1 % Accepted Europe 0.1% in ports Open loop not accepted in specific ports China 0.5% in selected areas Accepted California 0.1% within 24nm Submit research results to be accepted
34 Global Sulphur Limit Options Low Sulphur fuels MDO, MGO Low Sulphur HFO Alternative fuels Bio fuels Methanol LNG Scrubbers Wet type - open loop Wet type - closed loop Wet type - Hybrid Dry type
35 Global Sulphur Limit Option 1 Switch to Low Sulphur Fuel Low Sulphur fuels Question 1: Are they going to be widely available to meet the market needs? CE Delft study (commissioned by IMO), Low sulphur marine fuel will be sufficiently available by 2020 in order to allow compliance with the 0.5% global sulphur fuel cap. 2. Refining capacity will be enough low sulphur as demand from other sectors for distillates has slowed.
36 Global Sulphur Limit Option 1 Switch to Low Sulphur Fuel Low Sulphur fuels Question 2: What will be the price of low Sulphur fuels?
37 Global Sulphur Limit Option 1 Switch to Low Sulphur Fuel Low Sulphur fuels Question 2: What will be the price of low Sulphur fuels? 1. The price difference is the important parameter 2. Shipping industry (currently) adopts a wait-and-see approach 3. This makes the switching to MGO/MDO the preferred option at least until The same happened when the SECA regime entered into force, resulting in increased MGO price
38 Global Sulphur Limit Option 1 Switch to Low Sulphur Fuel Low Sulphur fuels Question 3: Is low flash point diesel (road transport fuels) an option? Fuels from the transport sector (e.g. in compliance with DIN EN 590 in EU) cannot be supplied as marine diesel fuel SOLAS: min. value 60 C (exceeds road transport fuels limits) Therefore, ships cannot use road transport fuels to comply with the Sulphur Cap To meet 2020 S limit the fuel industry has to supply shipping industry, with fuels varying only slightly from road transport diesel
39 Market Trends Option 2 Scrubbers It is expected that about 2000 ships will install scrubbers until 2020 Makers projection is up to 5000 until 2025 Projected share in the range of 10% to 20%
40 Market Trends Scrubbers Payback time for passenger vessels (ferries and cruises): 2-3 years for tankers with current fuel prices: 5 years
41 Global Sulphur Limit Option 3 Alternative fuels LNG is leading the market of alternative fuels Main Tech & Operational Challenges - Bunkering - Storage - Distribution - Use - Maintenance LNG as fuel Oil as a fuel
42 LNG as fuel Newbuilding projects Shipyard: Sefine Shipyard Shipowner: Caronte & Tourist Size: 1+1 Ro-Ro passenger ferry (290 cars; 1,000 pax) Designed to provide a 20-25% efficiency saving The first ferries to be powered at sea by LNG in the Mediterranean
43 LNG as fuel Newbuilding projects Shipyard: Cantiere Navale Visentini Shipowner: Balearia Size: 2 Ro-Ro passenger ferry (25,000 GT; 810 pax) The ships will be able to reach 24 knots speed with a total power of 20,600 KW Decline CO 2 and NOx emissions
44 LNG as fuel Newbuilding projects Shipyard: Meyer Werft- Papenburg Shipowner: AIDA Size: 2 cruise ships (180,000 gt) Shipyard: Meyer - Turku Shipowner: Costa Crociere Size: 2 cruise ships (180,000 gt) Revolutionary green design The first ships in the cruise industry to be powered at sea by LNG
45 LNG as fuel Is it the fuel of the future? 1ton of HFO burned in a ship s engine produces 3.11 tons of CO2 1ton of LNG burned in a ship s engine produces? tons of CO2
46 LNG as fuel Is it the fuel of the future? 1ton of HFO burned in a ship s engine produces 3.11 tons of CO2 1ton of LNG burned in a ship s engine produces 2.75 tons of CO2
47 LNG as fuel Remarks A. Transition fuel: LNG is going to be a transition fuel for maritime transport, B. Air pollution: Clear benefits in the elimination of air pollution, expensive option C. Climate change: LNG is not the solution for combating climate change Climate change Human Health & Ecosystems
48 Future trends
49 Future trends Electric Ships
50 Future trends Fuel cells, Hydrogen Half Reactions on the electrodes Anode: Η 2 2Η + + 2e - Cathode: 1/2 O 2 + 2H + + 2e - Η 2 Ο Total Reaction Η 2 +1/2 O 2 H 2 O
51 Future trends Fuel cells, Hydrogen
52 Future trends Fuel cells, Hydrogen
53 Future trends Digital Era The world s most valuable resource is no longer oil, but data
54 Future trends Digital Era Digital Ship Digital Platforms Smart Ships & Big Data Unmanned Ship Digital Twin Monitoring & Inspection Tools
55 Future trends Digital Era Fleet Certificates Book a Survey Digital Training Twin Cyber Security Self Assessment RINA Digital Platform CUBE Electronic Log Books Fleet Tracking & Piracy Warnings Maintenance Energy Efficiency & Sustainability Fleet Operative Center
56 Stefanos CHATZINIKOLAOU Senior Manager, Marine Research & Innovation RINA Hellas Ltd Phone: Mobile: hiip://
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