Strategy 2020 Green Shipping Summit
Emissions to Air The Changes POLLUTION EMISSIONS NOx Tier III (in force 1 st July 2016 US & Canada) SOx Global Cap (entry into force in 2020) NOx Tier III (entry into force 1 st January 2021) GLOBAL WARMING EEDI/SEEMP (IMO regulations currently in force) Data collection & reporting (IMO regulation in discussion) MRV (EU regulation, first reporting period 2017) GHG pathway (IMO regulation currently in debate) 2
Strategic Implications REGULATION APPLICATION IMPLICATION NOx Tier III Keel date & regional NOx monitoring likely SOx Global Cap All ships - 2020 Compliance strategy & lubricant BN & detergency EEDI/SEEMP All ships - Now Measurement & data reporting MRV/Data Collection All ships - 2017 GHG Pathway Prior 2020 Unconfirmed Measurement, data reporting & verification Other pollutants Under debate at EU Exhaust gas treatment & monitoring 3
SOx & NOx Compliance Options Compliance Option Methanol Compliance Achievement SOx Tier III Global Attractiveness Lubricant 2T Lubricant 4T Very Low Unconfirmed Unconfirmed LPG SOx Low BN to suit pilot fuel LNG Fuel (0.10 & 0.50%S) Scrubber 0.50%S Scrubber 0.10%S SOx Tier III Low BN to suit pilot fuel SOx Very High BN & detergency SOx Very High BN match fuel sulphur SOx High BN match fuel sulphur Lower BN top up Lower BN top up No change expected Only if fuel >3.5%S Only if fuel >3.5%S 4
Emissions by Fuel Selection Data Courtesy of DNV GL 5
Regulations - Key Considerations Sulphur compliance strategy New Build - NOx Tier III compliance strategy (only US & Canada) Emissions compliance assurance Data collection Data management Data Verification Cylinder lubricant selection 6
Cylinder Oil Optimisation - BN Scenario 1 3%S fuel on low load & highly derated engine FUEL SULPHUR 0.10% 4.50% ENGINE LOAD 100% 15% STROKE RATING LO HI OPTIMISED BN 17 140 70 Scenario 2 4%S fuel on low load & highly derated engine FUEL SULPHUR 0.10% 4.50% ENGINE LOAD 100% 15% STROKE RATING LO HI OPTIMISED BN 17 140 100 7
Cylinder Oil Optimisation - BN Scenario 3 0.1%S fuel on low load & highly derated engine FUEL SULPHUR 0.10% 4.50% ENGINE LOAD 100% 15% STROKE RATING LO HI OPTIMISED BN 17 140 17 8
Cylinder Oil Mixing System Fully automated Simple to install Minimal pipe modifications Enables optimised BN Extremely accurate consumption measurement Linked to fuel measurement provides specific feed-rate Only two cylinder oils required Simplified logistics & optimised procurement 9
The Competitors MCL Blending Gulf Oil Marine s consider alternatives have inherent design weaknesses & carry significant technical & operational risks; Feature Additive OEMs aware but no formal trials/nols Lo Base Oil OEMs aware but no formal trials/nols Lo Used System Oil Used Lubricant Low detergency/dispersancy, contaminants, too low viscosity, cost of replacement system oil Unknown performance, contaminants, viscosity may be too low BN Range Typically suitable for 50BN to 100BN Lo Ease of Retrofit Requires much more pipework, filters & pumps Hi Engine Controlled OEMs do not plan to provide interfaces OEM Approval OEMs have internal concerns/differences of opinion Lo Risk Hi V Hi Lo 10
Simplified Monitoring Installation ECR HMI & Data Output Screen Data Aggregator Cylinder Oil Mixing & Measurement Main Engine Exhaust Gas SOx Measurement Main Engine Fuel Mass Flow Meter Single Data & Power Cable Daisy Chained 11
Low Cost Real Time Data 12
Customer Benefits Energy asset protection SAVES MONEY MRV & IMO data collection SIMPLIFIED COMPLIANCE Emissions compliance validation DETENTION AVOIDANCE Energy efficiency improvement - SAVES MONEY Cylinder Oil Optimisation - SAVES MONEY 13
THANK YOU 14