The ARACON Bunker Conference 2007 The Voice of International Merchant Shipping 18-19 October 2007 Niels Bjørn Mortensen Head of Marine Department NBM@BIMCO.org
BIMCO presentation What is BIMCO? What is air pollution? MARPOL Annex VI BIMCO s position on SOx The Micro-SECA concept Distillates only? Current IMO work Conclusion
What is BIMCO?
What is BIMCO? The world s largest shipping organisation serving: Shipowners, Managers and Operators Shipbrokers and Agents P&I Clubs and National Associations Others with interests in shipping, e.g. classification societies, maritime law firms, ports, financial institutions
Current Membership Over 2,400 members in 123 countries More than 910 Owners, Managers and Operators with a fleet of 550 mill. DWT equalling about 65% of the world merchant fleet 1,400 brokers and agents 44 clubs, including the majority of International P&I Group members About 70 associate members
BIMCO Fleet Membership Other 140m DWT ~ 13,500 ships Bulk 196m DWT Container 63m DWT Tankers 151m DWT
Air pollution what s the problem?
What is air pollution? Burning of fossil fuels generates a number of emissions: CO + CO 2 (Carbon Oxides) SO x (i.e. SO, SO 2 & SO 3 - Sulphuric Oxides) NO x (i.e. NO + NO 2 - Nitrogen Oxides) Particulate matters (smoke) Greenhouse gases (incl. CO 2, N 2 O) Ozone (O 3 ) Water (H 2 O) Other ship generated emissions: Ozone depleting substances (Halon, Freon, ) VOC Volatile Organic Compounds
What is air pollution? How much oil does a large containership consume?
What is air pollution?
What is air pollution? A 100,000 DWT containership doing 25 knots uses: 250,000 litres ~ 210 ton per day! How much CO 2 does that produce? ~ 650 ton A 150,000 DWT bulk carrier uses: ~ 50 ton of oil => 160 ton CO 2 per day.
What is air pollution? Despite that, shipping has a good story to tell: 95% of all cargo is carried by sea. Transport in general account for 14% of the global CO 2 emission. Shipping s part is only 10% of that, i.e. 1.4%.
What is air pollution? Comparison of transport modes: A 20 foot container (TEU) transported by various modes will cause CO 2 emission per kilometre: By large containership: By feedership: By rail: By truck: 119 gr. 477 gr. 673 gr. 2,296 gr. By air plane ~25,000 gr.
MARPOL Annex VI MARPOL Annex VI is basically addressing:: Sulphur Oxides SOx Nitrogen Oxides NOx Ozone-depleting substances Volatile Organic Compounds VOC Appendix III contains: Criteria and procedures for designation of SOx Emission Control Areas - SECAs
MARPOL Annex VI BIMCO has basically been addressing the issue of SOx: SOx emissions from ships is an increasing problem in port areas. Sulphur content in marine fuels is generally much higher than in fuels used for land transport. SOx is a local problem surrounding the emission source, contrary to CO 2 which is a global problem. Particulate matters PM are inherently linked to the sulphur content. Solution: To limit SOx emissions close to populate areas.
BIMCO s position on SOx A pragmatic and practical solution: On the high seas: Allow use of Heavy Fuel Oil with a Sulphur content of max. 4.5%, Decrease Sulphur to 3.0% by 2011; In SECAs: Switch to 1% Sulphur content in 2011; 0.1% Sulphur content from 2016; Alternatively: Allow abatement techniques to achieve similar goals.
MARPOL Annex VI SECAs Baltic Sea 19 May 2006 N. Sea & Eng. Channel 21 November 2007 (IMO)
BIMCO s idea of Micro-SECAs New idea: BIMCO has also introduced the concept of Micro SECAs. Micro SECAs will ease the process of achieving SECA status. Micro SECAs may allow shipping to use the main shipping lanes without having to shift fuel.
Major Shipping Lanes Possible Micro SECA s or Regions!
BIMCO s idea of Micro-SECAs Obvious Micro-SECAs could be: Pearl River Delta, Tokyo Bay, Port of Singapore, New York/New Jersey, California, Saint Lawrence Seaways,... In principle every major port which is not already inside a SECA could be decared a Micro-SECA.
BIMCO s idea of Micro-SECAs The beauty of Micro-SECAs is that they should be approved by IMO to the same standards. This should (hopefully) prevent local or regional areas introducing special rules.
BIMCO s new idea of SECAs Keep the present SECA requirements for Baltic and North Sea. Introduce Micro-SECAs with a much stricter SOx limit, e.g. 0.1%. Restrict Micro-SECAs to densely populated areas. Allow Micro-SECAs within existing SECAs, e.g. London or Rotterdam.
BIMCO s position on Distillates Only Two major concerns: 1) The necessary amounts of distillates are not available. Recent studies indicate a total need of 300+ million tons of distillate per year would be required. 2) The production of the additional distillates will mean a substantial increase in the net CO 2 balance. 3)... there is also a cost issue that cannot be ignored by those who pay for the fuel.
BIMCO s position on Distillates Only One major plea to the bunker industry: Please provide on-spec HFO, i.e. fuel without too many impurities (like cat fines, polypropylene, etc.) Ships are designed to handle standard impurities, but ships are not meant to act as mini-refineries.
Current Developments IMO In connection with IMO s 56th session of MEPC this July, IMO s Secretary General established an: Informal Cross Government/Industry Scientific Group of Experts to perform a study on emissions and produce a report by December 2007. The Group consists of 25 members appointed in their personal capacities. BIMCO has been requested to chair the Shipping Subgroup.
Current Developments IMO - Continued The work of the IMO Expert Group will a.o. constitute: 1) Establish accurate figures for the world fleet to which MARPOL Annex applies, including engine data, 2) Project these fleet data to 2020, 3) Establish and project fuel consumption, 4) Estimate cost of shifting to distillate fuels, 5) Determine capacity for abatement techniques, 6) Evaluate safety and operational aspects, 7) Assess the consequential impact on CO2 by shifting to distillate fuels, and 8) Submit a report by 7 December.
Conclusion The overall aim of BIMCO s involvement in the Air Pollution from ships issue, is to seek uniform and international development of regulations which can be implemented in practice and which are under the purview of IMO.
Air Pollution Thank you. Questions?