Case study -MARPOL emission standards ECA Compliance. Your Trusted Partner

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Case study -MARPOL emission standards ECA Compliance Your Trusted Partner

MARPOL emission standards Regulation 14 SOx NOx Regulation N/A for existing vessels Outside ECA 4.5% m/m prior to 1 January 2012 3.5% m/m on and after 1 January 2012 0.5% m/m on and after 1 January 2020* Within ECA 1.5% m/m prior to 1 July 2010 1% m/m on and after 1 July 2010 0.1% m/m on and after 1 January 2015 *depending on the outcome of a review, to be concluded by 2018, as to the availability of the required fuel oil, this date could be deferred to 1 January 2025. Source: http://blogs.dnvgl.com/lng/2011/02/lng-for-greener-shipping-in-north-america/ ST Marine Page 2

ECA Body IMO - SOx IMO - Scrubbers EU US EPA California Air Resources Board - CARB Act MARPOL Annex VI Resolution MEPC.184(59) 2012/33/EU Vessel General Permit - VGP Source: http://blogs.dnvgl.com/lng/2011/02/lng-for-greener-shipping-in-north-america/ ST Marine Page 3

MV NOVA STAR General Particulars Length Overall [m] 161 Beam Overall [m] 26 Draught [m] 6.05 Tonnage [t] 27000 Displacement [t] 4145 Speed [kts] 21 Capacity [pax] 1200 [car] 336 Installed power [MW] 22.4 Power generators [kw] 4620 Main propulsion engine [no.] Diesel generator [no.] 3 Propulsors - 2 x CPP 1200 Passengers ROPAX ferry designed and built by ST Marine in 2011 Medium Speed Engines running on Heavy Fuel Oil 3.5% Sulphur (max) SCR installed for all the main engines Currently operating in Emission Control Area (ECA) in Gulf of Maine between Nova Scotia (Canada) and Portland (USA) 4 ST Marine Page 4

MV NOVA STAR Propulsion Configuration ST Marine Page 5

MV NOVA STAR Engine Operating Profile Sea-going: 4 main engines 75% MCR; 2 shaft generators running instead of the auxiliary engines. Maneuvering: 2 main engines running at 60% MCR; 2 auxiliary engines running at 92% load Critical operating profile: During maneuvering, the 2 main and 2 auxiliary engines are operating at lower loads compared to seagoing mode ST Marine Page 6

ECA Compliance - Options FUEL SWITCH Switch to low sulphur fuel in ECA. CHANGE TO MGO Run on Marine Gas Oil (MGO). ADVANTAGES Flexible Small investment ADVANTAGES Convenient No change over CHALLENGES High operating cost in ECA Fuel change over procedures Lube oil TBN management Fuel availability? CHALLENGES High operating cost Fuel availability? CONVERT TO LNG Convert engines to run on gas (LNG). ADVANTAGES A solution which also reduces NO x and particulates CHALLENGES Investment cost LNG availability? USE SCRUBBERS Install an exhaust gas cleaning system (scrubber). ADVANTAGES Works with high S HFO Lowest total lifecycle cost Use everywhere Easy operation CHALLENGES ROI depends on fuel oil price difference between low S fuel oil and high S HFO ST Marine Page 7

Fuel Switch Low Sulphur HFO & MGO Low Sulphur Heavy Fuel Oil ExxonMobil HDME 50 ExxonMobil HDME 50 (High Distillate Marine ECA) is formulated to meet the 0.1% SOx emission requirement. Low sulphur content associated with MGO The higher flashpoint and lower volatility properties typically found in HFO Advantages Reduced possible risk to HFO main engines due to having properties similar to HFO. Specially formulated by ExxonMobil to meet ECA requirement. Disadvantages Available only in the Amsterdam, Rotterdam, Antwerp region. More expensive compared to HFO. ST Marine Page 8

Repower with LNG - Duel Fuel Engines Modification 10L32/44CR to 10L35/44DF Original Modified Type MAN 10L32/44CR MAN 10L35/44DF Fuel HFO 3.5% HFO 3.5% Power 5600 5300 Speed 750 750 Bore 320 350 Stroke 440 440 Advantages Competitively priced against marine fuel. Clean emission (0% sulphur). Able to meet MARPOL Annex VI Regulation 14 Tier III in 2016 on NOx. Disadvantages Nearest LNG terminal is in state of Maryland Requires major retrofitting to ensure safety standards are met. Operators have to be trained to ensure they are competent to operate on LNG. ST Marine Page 9

Scrubbers A Retrofit Solution Scrubbers are installed in the exhaust systems to clean the exhaust gas Approved by IMO as the alternative means to comply with Regulation 14 Three modes: open loop, close loop, hybrid mode Open loop - uses the natural alkalinity of seawater to react with acidic SOx, - effectiveness depends on the alkalinity of the seawater where NOVASTAR is operating Close loop - uses freshwater mixed with alkali, - freshwater is re-circulated instead of overboard like open loop Hybrid mode: - combination of open and closed loop ST Marine Page 10

Various Scrubber Modes A Comparison Scrubber mode Open loop (OL) Closed loop (CL) Hybrid mode (HB) Comparison between different scrubber modes Advantages Least number of equipment required Simple system Scrubbing medium required (seawater) is readily available Alkalinity of scrubbing water can be controlled Can be used in coastal area and No-Discharge Zone Flexible for operators to run either OL or CL Alkalinity of scrubbing water can be controlled Can be used in coastal area and No-Discharge Zone Disadvantages Dependent on the alkalinity of the seawater Cannot be used in coastal area and No- Discharge Zone More equipment required compared to open loop Requires water cleaning and re-circulation system More equipment are required More pipe routing and re-routing are required ST Marine Page 11

Various Scrubber Designs A Comparison Scrubber Designs : Inline & Venturi - Inline scrubbers require higher water flow rates to make up for the absence of the jet absorber in Venturi-type - Inline type is the preferred due to the limited space in NOVA STAR exhaust casing. Size example: 6 MW scrubber for one engine Inline scrubber Ø1850 : 10000(h) x 2240(w) x 2560(l) Venturi scrubber 1#6M1 : 7465(h) x 2431(w) x 4013(l) Parameters Venturi scrubber Inline scrubber Wash water amount 45 m 3 / MWh 55 m 3 /MWh Max fuel S% content 3,5% 2,5% (open loop) Integrated option Yes No PM removal Up to 90%? Venturi type Inline type Replacing silencer No Possible ST Marine Page 12

Scrubber Retrofit Space Constraints Main space constraints: limited space in exhaust casing for scrubber units to be installed Space needed for auxiliary equipment needed ST Marine Page 13

Scrubber Retrofit Additional Weight Additional weight = less pay load = economical impact Affects ship stability Location Weight (t) VCG VM 1 Scrubbers - 4 nos Casing Dk#8 16.8 27.82 467.376 2 Remove 4 silencers Dk# 7-2 26.82-53.64 3 Remove 4 connection pcs 7111/1-4 below SCR Dk#4-2 13-26 4 Supply pumps - 4 nos Dk#1 3.528 2.4 8.4672 5 Wash water pump - 2 nos Dk#1 1.41 2.4 3.384 6 Reaction water pump -2 nos Dk#1 1.42 2.4 3.408 7 Residence tank (+5m Above WL) Dk#5 39 16.6 647.4 8 Multi cyclones - 2nos Dk#5 2.136 16.6 35.4576 9 Sludge tank - 4 nos (weight when full) Dk#1 4 2.4 9.6 10 Water treatment system (DAF BOTU) 2 nos 3.6 5.85 21.06 11 Alkali tank 6.4 9.6 61.44 12 Process tank 39 15.1 588.9 13 Buffer tank 12 15.1 181.2 14 Holding tank (size depending onoperation profile with zero dicharge time) 90 2.4 216 15 Piping work 20 18.23 364.6 16 Steel works/ supports 15 18.23 273.45 17 Miscelleneous 5 18.23 91.15 Total 215.3 13.44 2893.25 ST Marine Page 14

Decision based on Cost Retrofit cost and operational cost, ROI Schedule Equipment lead time and Vessel out of operation Functional Performance and payload Reduced payload and reduced earning Effectiveness at different sea environments Crew/ Operator Training- Gas engines Fuel availability LNG bunkering terminals ST Marine Page 15

Thank You Your Trusted Partner