Emerging Environmental Rules & ECA Compliance

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Emerging Environmental Rules & ECA Compliance JOC Container Trade Europe Conference Hamburg, 23-24 September 2015 Per Holmvang Program Director Environmental Technologies DNVGL Maritime Technology and R&D 1 SAFER, SMARTER, GREENER

MARPOL Annex VI - Emission Control Areas (ECAs) Addressing local & global pollution Acidification & health aspects Impact Acidification (sulphuric/nitrous acid) ⱱ ⱱ Smog formation Particulate Matter/Black Carbon * Fertilizer effect (Eutrophication) Toxic to humans (asthma, lungs) ⱱ ⱱ ⱱ ⱱ ⱱ 2 PM/BC emissions from shipping indicated to cause 60.000 premature mortalities per year <Corbett>

Introduction of Emission Control Areas (ECAs) 3

Tightening sulphur emission requirements Notice: 0.5% S limit will apply in EU EEZ from 2020 4

SECA How to comply? Permanent use of LS-D Switch HS-HFO to LS-D when in/enter ECA New types LS-HFO (switch/permanent) Exhaust Gas Cleaning - Scrubbers Retrofitting Also reducing PM/BC LNG as fuel HS High Sulphur (2.5-3% S) LS Low Sulphur (<0.10% S) HFO Heavy Fuel Oil D Distillate (= Gas Oil) PM Particulate matter BC Black Carbon 5

New Type Low-Sulphur Fuels (<0.10% S) Characteristics: Viscosity up to 50-60 cst No residuals No cat fines High flash point Aliphatic / no aromatics Good ignition & combustion May need separation & heating Question marks: Stability/compatibility Cold properties/wax (PP 0-20) Lubricity Microbiological growth Price indicated 20-50 USD below MGO 6

Fuel Change Over Calculator Optimal time to change over from HFO to LSF to be compliant when entering SECA Goals: Optimize lead time Minimize cost Safe change-over Factors (ship specific): HFO Spec LSF Spec Fuel consumption Fuel system layout Modifications needed? Temperature constraints Compatibility!! 7

Scrubber systems Maturing and scaling Scrubber types: Open loop, Closed loop, Dry scrubbers NB & Retrofits

Safe, Efficient & Optimized Scrubber Operations? Monitoring & documentation emissions/discharge Performance/energy consumption (cost) Safety issues related to handling of chemicals Scrubber Operations Operational Operations: experiences Consumables, (consumables, residuals, reception facilities) Crew competence - process plant Maintenance issues corrosion, repairs.. 9

Optimal hybrid propulsion system layout FUEL CELL BATTERY ENGINES using LNG as fuel DNVGL Simulation Tool: AUXILIARIES 10

Hybrid systems - Improved load balancing Generators run continuously in their optimal load point and efficiency Power demand 11

NOx Regulations Including NECA How to comply? > 2000 all ships (Ship construction date) > 2011 all ships (-20%) >2016 NB in NECA (-80%) * (NOx Code EIAPP) rpm Means to comply: Selective Catalytic Reactor Water/Humidity Exhaust Gas Re-circulation LNG Applies only to N-America from 1-Jan 2016 since introduction of Baltic NECA is postponed. HELCOM pushing. North Sea will follow Baltic decision. Date of implementation uncertain though. 12

ECA compliance through LNG as ship fuel Emission component Reduction with LNG SOx 100 % NOx, Low pressure engines (Otto cycle) 85 % NOx, High pressure engines (Diesel cycle) 40 % CO 2 25-30 % * Particulate matter 95-100 % *Green House Gas (GHG) emissions depend on methane slip 13

Regulations in a nutshell Regulations: SECA requirements remain unchanged Global 0.5% S by 2020 or 2025 But note 0.5% in EU waters 2020 NECA Tier III requirements effective in N.America waters from 2016 NECA application for Baltic & N.Sea Implementation uncertain Compliance: Technical solutions are available Compliant fuels are available Practical experience needed for sound Best Practices Outlook new regulations in the pipe-line Ballast Water Management Systems soon to be ratified? Monitoring, Reporting & Verification (MRV) of CO 2 within EU (or IMO) Particulate Matter & Black Carbon Sewage Hull bio-fouling Underwater noise Arctic operations - IMO Polar Code 14

Thank you for your attention Per Holmvang Per.Holmvang@dnvgl.com +47 91761621 www.dnvgl.com SAFER, SMARTER, GREENER 15