International Maritime Organisation: upcoming decisions ppoev Mr. Loukas Kontogiannis

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1 Small Scale to large Market Strategies & Technologies towards the Mediterranean Area International Maritime Organisation: upcoming decisions ppoev Mr. Loukas Kontogiannis Technical Officer Sub-Division for Marine Technology & Cargoes Maritime Safety Division

2 Presentation topics General process of developing measures at IMO International Code of Safety for Ships using Gases or other Low-flashpoint Fuels (IGF Code) - Adoption and entry into force - Structure and scope of application - LNG research studies presented to the CCC Sub-Committee - Ongoing work Natural gas and its relation to the IMO work on air pollution and energy efficiency 2

3 International Maritime Organization Specialized UN agency Headquarters in UK since 1958 Annual budget 30+ million Secretariat 265 staff, more than 50 nationalities 3

4 IMO global coverage 172 Member States, three associate members 65 IGOs and 77 NGOs participate as observers 4

5 5 Committees 7 Sub-Committees IMO at work General Assembly 172 Member States COUNCIL 40 Member States SHIP DESIGN AND CONSTRUCTION (SDC) SHIP SYSTEMS AND EQUIPMENT (SSE) HUMAN ELEMENT, TRAINING AND WATCHKEEPING (HTW) Facilitation Committee Technical Co-operation Committee Legal Committee NAVIGATION, COMMUNICATIONS AND SEARCH AND RESCUE (NCSR) IMPLEMENTATION OF IMO INSTRUMENTS (III) CARRIAGE OF CARGOES AND CONTAINERS (CCC) Maritime Safety Committee Marine Environment Protection Committee POLLUTION PREVENTION AND RESPONSE (PPR) 5

6 Development of measures at IMO Casualty/ New research or technology Proposal to IMO Discuss, agree to refer on Draft text Adoption or approval Proposals for new, or amendments to existing, mandatory instruments - a compelling need for such amendments should be demonstrated by the proponent(s) and an analysis of the implications of such amendments, particularly those with far-reaching implications and consequential proposals for other amendments, having regard to the costs to the maritime industry, the legislative and administrative burdens involved and benefits which would accrue therefrom, should be provided 6

7 SOLAS flashpoint of fuel SOLAS regulation II-2/4.2.1 limits the flashpoint of fuels to 60 o C or higher Low-flashpoint* fuel means gaseous or liquid fuel having a flashpoint lower than otherwise permitted under SOLAS regulation II-2/ (i.e. < 60 o C) MSC 95 (May 2015) adopted the International Code of Safety for Ships using Gases or other Low-flashpoint Fuels (IGF Code) and amendments to SOLAS to make the Code mandatory (resolution MSC.391(95)) (entry into force: 1 January 2017) * Flashpoint means the minimum temperature at which a liquid gives off a vapour in sufficient concentration to form an ignitable mixture with air 7

8 Development of the IGF Code Original compelling need put forward to MSC 78 The use of gas as fuel is increasingly becoming a competitor to traditional bunker fuel in a variety of ship types. The lack of international requirements regarding the use of gas as fuel in ships may result in the development of different national or other standards which may be inadequate or erroneous in certain respects and which may consequently result in unnecessarily high risks associated with the use of gas as fuel in ships. 8

9 Development of the IGF Code Original compelling need put forward to MSC 78 Risk assessments carried out in connection with building of the two offshore supply vessels referred to above, established the enormous damage potential an explosion in a gas fuelled ship may have both to the ship and its crew, as well as to the ship's surroundings. Having in mind such serious potential consequences, Norway is of the opinion that there is a compelling need for IMO to develop international regulations in this field. 9

10 Development of the IGF Code Work was mainly carried out in intersessional correspondence groups and in working groups at IMO Technology was being developed in parallel to the development of the regulations 10

11 Development of the IGF Code Interim guidelines on safety for natural gas-fuelled engine installations in ships (resolution MSC.285(86)) Non-mandatory guidelines, limited to natural gas 11

12 Development of the IGF Code Amended scope developed by BLG 14 in 2010 In relation to the ongoing general discussion related to fuel quality, air emissions and limited availability of low-sulphur fuels, the possibility of alternative cleaner burning fuels, such as methanol and ethanol, should be addressed by the Code. Such fuels will help to reduce emissions of sulphur and CO2 and, in some cases, NOx and particulates from shipping. Bearing in mind the similarities between these flammable liquids and gases, they should be considered during the development of the IGF Code. Since low flash-point fuels are currently not addressed in any IMO instrument and as it is anticipated that these liquid fuels will be used in the future, IMO should also be at the forefront of this development. 12

13 Development of the IGF Code The IGF Code contains detailed requirements for natural gas Other low-flashpoint fuels are allowed but, given that no detailed requirements have been adopted yet for fuels other than natural gas, approval is based on the alternative design approach 13 The current focus of the work at IMO is to develop detailed technical provisions for methanol and the use of fuel-cells

14 Purpose of the IGF Code The purpose of the IGF Code is to provide an international standard for ships using low-flashpoint fuel, other than ships covered by the IGC Code The basic philosophy of the Code is to provide mandatory provisions for the arrangement, installation, control and monitoring of machinery, equipment and systems using low-flashpoint fuel to minimize the risk to the ship, its crew and the environment, having regard to the nature of the fuels involved NOTE: Gas carriers need not apply the IGF Code (i.e. they only need to comply with the IGC Code) even in cases when they use low-flashpoint fuels that are different to their cargo (e.g. LPG carrier using LNG as fuel). 14

15 Structure of the IGF Code Chapter 1 Preamble PART A (applies to all types of low-flashpoint fuels) Chapter 2 General Chapter 3 Goal and functional requirements Chapter 4 General requirements PART A-1 SPECIFIC REQUIREMENTS FOR SHIPS USING NATURAL GAS AS FUEL Chapter 5 Ship design and arrangement Chapter 6 Fuel containment system Chapter 7 Material and general pipe design Chapter 8 Bunkering Chapter 9 Fuel supply to consumers Chapter 10 Power generation including propulsion and other gas consumers 15

16 Structure of the IGF Code Chapter 11 Chapter 12 Chapter 13 Chapter 14 Chapter 15 PART B-1 Chapter 16 PART C-1 Chapter 17 Chapter 18 PART D Chapter 19 Fire safety Explosion prevention Ventilation Electrical installations Control, monitoring and safety systems Manufacture, workmanship and testing Drills and emergency exercises Operation Training 16

17 Research projects relating to LNG as fuel (as presented to the CCC 2 and 3 CCC 2/INF.16 (Republic of Korea) - information on the results of a research project involving a gas explosion analysis on the bunkering station of an LNG-fuelled ship CCC 3/INF.13 (Republic of Korea) - research project the purpose of which was to identify potential risks of LNG bunkering and to present a statistical method for determining the safe exclusion zone around LNG bunkering stations with the help of a purposebuilt computer programthe basic philosophy of the Code is to provide mandatory provisions for the arrangement, installation, control and monitoring of machinery, equipment and systems using low-flashpoint fuel to minimize the risk to the ship, its crew and the environment, having regard to the nature of the fuels involved 17

18 Research projects relating to LNG as fuel (as presented to the CCC 2 and 3) CCC 3/INF.14 (Republic of Korea) - results of an LNG leakage rate analysis, conducted as part of a research project, to be used as a reference for the risk assessment required in the context of paragraph in part A-1 of the IGF Code CCC 3/INF.15 (Republic of Korea) - research project which was conducted with the aim of investigating the extent of the potential risks of a high pressure LNG fuel gas supply system through a case study CCC 3/INF.16 (Republic of Korea) - research project in which a quantitative risk assessment of LNG bunkering port side was completed by means of parametric analysis 18

19 CCC 4 (11 to 15 September 2017) The Correspondence Group on Development of Technical Provisions for the Safety of Ships using Low-flashpoint Fuels will report to the Sub-Committee based on the following terms of reference: finalize the draft amendments to the IGF Code regarding fuel cells; and further develop the draft technical provisions for the safety of ships using methyl/ethyl alcohol as fuel 19

20 Natural gas as marine fuel and its relation to environmental regulations MARPOL Annex VI regulation 2 (definitions) Regulation 2.9 Fuel oil means any fuel delivered to and intended for combustion purposes for propulsion or operation on board a ship, including gas, distillate and residual fuels. Regulation 2.14 Marine diesel engine means any reciprocating internal combustion engine operating on liquid or dual fuel, to which regulation 13 of this Annex applies, including booster/compound systems if applied. In addition, a gas fuelled engine installed on a ship constructed on or after 1 March 2016 or a gas fuelled additional or non-identical replacement engine installed on or after that date is also considered as a marine diesel engine. 20

21 Natural gas as marine fuel and its relation to environmental regulations MARPOL Annex VI regulation 14 Regulation The sulphur content of any fuel oil used on board ships shall not exceed the following limits: % m/m prior to 1 January 2012; % m/m on and after 1 January 2012; and % m/m on and after 1 January

22 Natural gas as marine fuel and its relation to environmental regulations Amendments to the NOx Technical Code 2008 Resolution MEPC.272(69) Chapter 1 General In paragraph , the following new sentence is inserted after the first sentence: "In addition, a gas-fuelled engine installed on a ship constructed on or after 1 March 2016 or a gas-fuelled additional or non-identical replacement engine installed on or after that date is also considered as a marine diesel engine." 22

23 Sulphur content of fuel oil MARPOL Annex VI regulation 14 Regulation The sulphur content of any fuel oil used on board ships shall not exceed the following limits: % m/m prior to 1 January 2012; % m/m on and after 1 January 2012; and % m/m on and after 1 January Regulation A review of the standard set forth in paragraph 1.3 of this regulation shall be completed by 2018 to determine the availability of fuel oil to comply with the fuel oil standard set forth in that paragraph 9 [group of experts to conduct review] 10 [Parties to decide on date based on review] 23

24 Sulphur content of fuel oil Timeline Fuel oil % sulphur Review completed Global 0.50 ECA Time 24

25 Sulphur content of fuel oil Emission Control Areas (ECAs) North Sea and Baltic Sea ECA North American ECA United States Caribbean Sea ECA 25

26 Sulphur content of fuel oil Final decision of MEPC 70 Implementation date confirmed MEPC 70 approved CE Delft assessment and confirmed implementation date of 1 Jan 2020 for global 0.5% m/m sulphur cap. Resolution MEPC.280(70) adopted MEPC 70 adopted resolution MEPC.280(70) on Effective date of implementation of the fuel oil standard in regulation of MARPOL Annex VI. PPR 4 to consider implementation issues MEPC 70 instructed PPR 4 to consider concerns expressed regarding implementation (MEPC 70/5/2 and comments made in plenary) and to draft justification and scope for new output on what additional measures may be developed to promote consistent implementation of 0.50% global sulphur limit, for consideration at MEPC

27 Sulphur content of fuel oil Outcome of PPR 4 Agreed new output on consistent implementation of regulation of MARPOL Annex VI, for approval by MEPC 71 Scope of the work, to be completed at PPR 5 and PPR 6 in 2018 and 2019, could include: - preparatory and transitional issues - impact on fuel and machinery systems - verification issues, control mechanisms and necessary actions to ensure compliance and consistent implementation - standardized system for reporting non-availability of compliant fuel oil - assessing sulphur content of delivered fuel oil for verification - ISO to consider framework of ISO 8217 standard for fuels supplied on a world-wide basis for consumption on board ships - consequential regulatory amendments and/or guidelines 27

28 Fuel oil consumption data collection Data collection system adopted at MEPC 70 3-step approach Step 1 Data collection Step 2 Data analysis Step 3 Decision-making on what further measures, if any, are required MARPOL Annex VI New regulation 22A Adopted at MEPC 70, expected to enter into force 1 March 2018 Ships 5,000 GT required to submit to their Administration annual reports on fuel oil consumption and transport work parameters Administrations to submit aggregated data to IMO for inclusion in anonymised IMO Ship Fuel Oil Consumption Database first data calendar year beginning 1 January

29 Fuel oil consumption data collection Appendix IX of MARPOL Annex VI Information to be submitted to IMO Ship Fuel Oil Consumption Database IMO number Calendar year covered Technical characteristics of ship (type, GT, NT, DWT, power output (rated power)) EEDI (if applicable) Ice class Fuel oil consumption (by fuel oil type, in metric tonnes and methods used for collecting fuel oil consumption data) Distance travelled (over ground), hours underway 29

30 Fuel oil consumption data collection 30

31 Fuel oil consumption data collection Data collection process Ship Submits data to flag State or RO in accordance with regulation 22A of MARPOL Annex VI Flag Administration Aggregates data and submits to IMO Secretariat Issues to the ship Statement of Compliance - Ship Fuel Oil Reporting IMO Secretariat Aggregates all data submitted by flag States, ROs and non-party ships Provides flag States with anonymized data from the IMO Ship Fuel Oil Consumption Database Database Data will be anonymised to extent that individual ships cannot be identified Access to anonymized data will be restricted to Parties to Annex VI only 31

32 Fuel oil consumption data collection Correspondence group established at MEPC 70 finalize draft guidelines for Administration data verification procedures, in accordance with regulation 22A.7 of MARPOL Annex VI further develop draft guidelines for the development and management of the IMO Ship Fuel Oil Consumption Database, including means to keep the ships anonymised and to ensure the completeness of the database develop draft MEPC circular to address non-party ships submitting data to the Database report to MEPC 71 (July 2017) 32

33 33

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