MARTOB EC Sharedcost RTD Project

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Rederiforbundets miljøseminar 16. november
2004 Forum for Reducing Sulphur Emissions from
Shipping Lars Kolle MARINTEK
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IMO MARPOL Annex VI

• Adopted at IMO Diplomatic Conference 1997
• Global sulphur cap of 4.5 for HFO burned by
  ships from 19 May 2005
• Designated two SOxECAs, Baltic Sea (1997) and
  North Sea English Channel (2000), sulphur cap
  of 1.5
• Enter into force
• Baltic Sea, 19 May 2006
• North Sea English Channel, November 2007

SOxECA Border (MARPOL)
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Directive 1999/32/EC

• Various amendments under discussions during 2004
• In the North Sea BalticAll ships to use lt
  1.5 S fuel, dates acc. IMO
• Throughout the EUAll regular passenger vessels
  to use lt 1.5 S fuel by 19 May 2006
• In all EU portsAll ships at berth to use lt 0.1
  S fuel by 1 January 2010

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Main findings Operational aspects

• Conclusion depends on ship and trade
• European coastal vesselsContinuous LS
  operation, LSHFO, MDO, MGO
• Inter Continental tradeHS HFO outside SOxECA,
  LSHFO inside
• Inter European / US tradeDependent on number of
  roundtrips, port calls etc.
• Choice of investment in fuel system/cleaning
  systems vs. increased operational cost will be
  trade dependent.

SOxECA Border (MARPOL)
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Recommended further work

• Improve estimates on quantification of impact of
  new regulations. Fuel supplier industry should
  assist in providing assessment of how demand will
  be met and improved cost-estimates.
• Development of fuel testing standards.ISO/CIMAC
  standards (e.g. ISO 10307-2) and methodology for
  testing of fuel stability may not be adequate
• Procedures for change over for dual/multi fuel
  operation.Operators must prepare for new
  requirements. Change over procedures dependent on
  trade, ship design and power plant layout
• Operational feedback related to duel fuel
  operation must be collected and dissiminated to
  end users (future best practice guidelines for
  new and existing ships)
• Monitoring equipment developmentUser friendly
  emission monitoring equipment not available

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Summary

• Important for shipowners to keep informed and
  assess own options
• Shipowners heading for a period of uncertainty.
  New operational experience about to be gained
  be prepared
• Fuel quality likely to again become an issue
  stability margin of new products uncertain
• A push for acceptance of onboard exhaust
  after-treatment as equivalent option. Issue of
  waste handling (dump or treat) or availability of
  tamper proof continuous monitoring equipment
  not properly addressed so far, hence a
  significant risk in investment today.
• Future operational costs will increase
  individual paths to minimise level of increase
• Marine administrations must be prepared to
  provide guidance on enforcement of new regulations

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Dissemination
Nov 2003 NSA seminar in Oslo on coming sulphur
regulations 45 delegates, shipowners, bunker
suppliers, equipment manufacturers,
authorities Presentations, proposed
legislation, availability LSHFO, operational
challenges Group discussions, status, policy,
plans, need for common actions, joint
industry Conclusions Concern regarding
control regime and enforcement not harming
competitiveness of serious players Need for
joint industry project, both regarding
information handling, communication and
systemisation, technical operational experience
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Dissemination, cont.
March 24, 2004 NSA mini-seminar in Oslo follow
up Presentation of drafted Joint Industry
Project Short status reports, four ship
operators SMP Project discussions Conclusio
ns Several ship operators have prepared
machinery design for newbuildings and plans
for operation/ procedures/retrofit of existing
ship Some ship operators have started rebuild
programs as ships pass normal drydock
schedule Joint industry project decided
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Konklusjoner fra møte 17. juni
    Beslutning om iverksettelse av prosjektet,
slik beskrevet i forslaget, men med justeringer
og forutsetninger som følger av etterfølgende
punkt, fattes enstemmig.       Prosjektet
organiseres som et forum for deltakende
medlemmer. Deltakerne består av rederier,
oljeselskap, bunkermeglere, utstyrsleverandører,
klasse- og FU- institusjoner. Medlemmene bidrar
gjennom egeninnsats i arbeidsgrupper og
møtevirksomhet, dette regnes som industribidrag.
Rederimedlemmene betaler i tillegg en årlig
kontingent på NOK 10 000.-.       Alle resultat
fra prosjektet, i form av rapporter,
presentasjoner, møtereferat etc. behandles som
åpent tilgjengelig, og det er således ikke behov
for noen Joint venture avtale mellom partene.
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Konklusjoner (forsetter)
    Vedrørende aktivitetsbeskrivelsen vil denne
bli revidert regelmessig i tråd med forumets
vedtak. Det er enighet om at alternativ
renseteknologi/ scrubbingteknologi kan bli en
interessant løsning, og skal ha tett oppfølging,
opplegg drøftes på første arbeidsgruppemøter.    
   Sekretærfunksjonen inklusive budsjett
gjennomgås med hensyn til en kostnadseffektiv
gjennomføring og samvirke med Rederiforbundet v/
Rune Karlsen.       I budsjettforslaget
forutsettes Fueltechs deltakelse å være betalt,
mens øvrige industripartnere deltar for egen
regning. Arbeidsgruppene tar i sitt første møte
en gjennomgang av de oppgaver Fueltech ønskes å
bidra på samt hvorledes de skal kompenseres for
dette.       Rederiene Wilhelmsen/ Barber, Höegh
og Bergesen d.y. søker på vegne av øvrige
medlemmer Rederiforbundets FU program MAREN om
dekning av inntil NOK 260 000.-. Det settes som
forutsetning at minst 10 rederier deltar i
prosjektet.
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Mål for Forumet

• Overordnet
• Bidra til en ansvarlig og kosteffektiv
  implementering av svovelreguleringen
• Oppnås gjennom
• Konkretisere behov/utfordringer/problemstillinger
  svovelreguleringen kan medføre
• Samle og koordinere eksisterende kunnskap og
  kompetanse på området, blant forumets medlemmer
  og fra eksterne ressursmiljø
• Innhente, systematisere og akkumulere kunnskap og
  erfaringer fra implementeringen av
  svovelreguleringen
• Tilgjengeliggjøre kunnskap og erfaringer gjennom
  Forumsmøter og E-rom

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Participants
Rederier Barber Marine Consultants Bergesen
DY Color Line Marine Grieg Billabong Farstad
Shipping Höegh Fleet Services Hual Jo Tankers K G
Jebsen Lys-Line Odfjell OSM Ship Mngt PGS
Geophysical Seatrans Star Shipping Teekay
Norway Torvald Klaveness Vista Ship
Mngt Wallenius Wilhelmsen Westfal-Larsen
Mngt Wilh. Wilhelmsen
Oljeselskap BP Marine ExxonMobil Shell Marine
Products Statoil Meglere Bergen
Bunkers Wilhelmsen Bunkers
Utstyrsleverandører MAN BW Rolls-Royce
Bergen Unitor Chemicals Wärtsilä
Corporation Klasseselskap DNV FU
specialist DNV Petroleum Services Fueltech MARINTE
K
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Five Working Groups

• Bunkers availability/qualityUpdate scenarios on
  LS fuel balance in market, cost aspects,
  consequences for bunker strategies. Possible
  development in quality spread, ignition/combustion
  properties stability criteria, compatibility.
  Certificate criteria. Trouble care handling.
  Communication of results.

Chair Hans M. Borge / Wilh. Bunkers Bergen
Bunkers, BP Marine, Shell MP, Statoil, Hual,
Star Shipping, DNVPS, Fueltech

• Tribology excessive wearSystematic collecting
  and registration of abnormal operation
  occurrences, engine performance, excessive wear,
  heavy deposits, sludge formation. Interpretation
  and documentation, trouble handling procedures.
  Communication of results.

Chair Roald Gravdal / Odfjell Bergesen DY, Jo
Tankers, Barber Marine Consultants, BP Marine,
DNVPS, Fueltech, MARINTEK, MAN BW, Wärtsilä,
ExxonMobil
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Five Working Groups (continued) Working Group
Coordinator Hans Petter Grønlund / Wilhelmsen

• System solutions/procedureExchange/comparison of
  system solutions retrofit/new-build corresponding
  operational procedures. Cost efficient solutions,
  minimum exposure to fuel incompatibility problem,
  firm/simple verification of compliance with
  regulations. Changeover procedures. Steamboilers,
  safety aspects.

Chair Jan A. Berntzen / K.B. Jebsen Farstad
Shipping, Höegh FS, Klaveness, Lys-Line, SOM,
Seatrans, Vista Ship, Westfal-Larsen, ExxonMobil,
MAN BW, Rolls-Royce Bergen, UNITOR.

• Exhaust gas after treatmentSurvey and
  communication on IMO and EU legislation,
  technology development, promising technologies.

Chair Nils C. Høy-Petersen / Klaveness Color
Line Marine, Farstad Shipping, Teekay, Vista
Ship, Wilh. Wilhelmsen. Shell MP, Statoil

• LegislationSurvey and communication on IMO and
  EU legislation. Plenary discussion on
  consequences, possible actions, opinions,
  statements.

Chair Knut-Harald Berntsen / Bergesen DY NSA,
Shell MP
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Forum for reducing sulphur emissions from
shipping   Tuesday December 14th 2004 Norges
Rederiforbund, Rådhusgaten 25   Program
(draft)   0930 Opening address 0945 Challenges
to engine manufacturers v/ MAN BW - Alterations
in operation conditions - Consequences for
system design, bunker, pre-treatment, lube oil -
Engine tribology - Operation and
recommendations - Experiences, trouble
cases 1130 Abatement Technology, SEAaT, v/BP Don
Gregory - Project onboard Pride of Kent -
Environmental impact study   1230 Lunsj  1315 R
eports from Working Groups - Bunker availability
and quality - System design and operation -
Tribology and excessive wear - Abatement
technologies - Control regime 1445 Break  1500
Plans for 2005 - Description of activities -
Budget - Funding/finance 1545 A.O.B. Summing
up, closing